This is a short lesson on Vacant Property Insurance. It is purchased by Attorneys, Realtors, Rehabbers, and Property Owners when the dwelling is empty because it is for sale, part of an estate, or being rehabbed.
It is a short term policy. As short as 30 days and as long as 6 months. If you buy a 30, 60, 90 day policy, you can never get a refund. If you buy a policy for 6 months and then sell at 4 months you would get a refund. There are some companies that offer a 1 year policy. If you buy a short term and need to extend it; the companies will extend if you contact your agent in advance of the policy ending.
This insurance does not require an insurance or 4 point inspection.
The basic questions asked are:
- Owner, and mailing address, telephone number
- Address of dwelling
- Building material? Block or Frame
- Age of house
- Roof - the current condition, type of cover - tile, shingle, etc
- Pool?
- Liability coverage? It is available; but, you don't have to buy any liability coverage
- If previous coverage, what company and dates of coverage
What are you going to do? This coverage is for cosmetic type things. Painting, landscaping, new floors, cabinets, windows. Or just sitting empty. It is not for major construction changes, like removing walls, adding additions, ripping off the joists and roof and putting all new from the walls up. There is Builder's Risk Coverage for major work. And they ask for the General Contractor's Name and License.
If you are in the Wind Pool, it doesn't cover wind, but you can buy wind coverage through Citizens Wind Insurance. This does not cover Flooding.
There is a standard deductible.
This is relatively easy to buy and wonderful when your current policy lapsed because the closing was delayed and you don't want the property and your profits to "go up in smoke".
Kim Grove, the owner of Grove and Associates Insurance located at 2047 Reynolds St., Sarasota, Florida. 34231 can be reached at (941)925-3330
or email
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