The biggest reason a vacant home can be difficult or expensive to insure is because a very small problem left unattended can become a very large problem. Take for example a leaky sink. I insured an apartment building a few years ago and when the tenant moved out they did not turn off the plumbing completely on the second floor when they removed the appliances. The dripping was so slow it was almost unnoticeable but over a couple of days the drops of water accumulated and brought the ceiling down on the kitchen on the first floor and destroyed some cabinets. If no one is actively monitoring the property on a daily basis, a home can really accumulate some substantial damage.

Another problem vacant buildings have is vandalism, malicious mischief, or theft. A property left alone is prone to attract the wrong element especially in a more urban area like Detroit. We have cases in Detroit where other investors steal cabinets, plumbing (especially copper), and other building materials for their own property. They pull up in a truck and the neighbors believe the home is undergoing renovation or repairs. They leave without even raising a red flag. It’s not an epidemic, but it does cause enough large claims with the insurance company that eventually affects all policy holders by creating higher premiums. Many homes are being stripped for salvage or personal use. We also had a home insured that was used for a dog fighting arena because someone knew the property had been vacated.

The most common reason vacant homes are difficult to insure is because insurance companies are not equipped nor do they have the type of specialized underwriters the company would need to properly rate insurance on vacant properties. Insurance companies need to make profits to stay in business and usually write predictable risks they can underwrite successfully.

There are companies that specialize in vacant home insurance and are offered by some agents. The hard part is finding the agent who knows the product and also writes for a company that offers the type of policy you want.Many agents will write the policies through a state fair plan that has limited coverage and extremely strict guidelines for vacant homes. They are also very expensive.

We specialize in insuring homes, landlords, and investors properties. We insure tenant occupied and vacant properties even while they are being rehabbed.

For advise or a quote please visit our website at http://www.getgliga.com or call us at 888-438-4544.

The Home Insurance Specialists.

Great Lakes Insurance Group Agency