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Vacant Property Insurance
It can be a difficult task to obtain the insurance coverage that you require for an vacant property that you currently have in your possession. This is due to the fact that insurance providers have the opinion that there is a greater risk to be taken when insuring an vacant property and that these properties have a greater need from insurers than the typical occupied property.
There is of course the increased risk of vandalism when dealing with vacant properties. These properties are subject to vandalism as there is no presence on the property to curb would be burglars. There is decreased fear with getting caught and as such makes a vacant property more appealing. There is also the problem of breaking windows and doors as well as an increased likelihood of fires and general property destruction.
Squatters are another issue on these types of properties as they can be unoccupied for long periods and the owners can often neglect to keep proper up keep on the property. This leads to squatters having free reign on the property and they may also cause untold damages as well. Damages that occur on unoccupied places are also not as quickly detected and as such can lead to more serious problems.
There are several reasons that vacant property insurance may be required including incidents such as death of the previous owner which the property is scheduled to go up for sale. There may also be periods where a property is in the process of a change of ownership, if you are completing repairs and if the property is unsuitable for occupation. You must ensure in these periods that the property is covered specifically by vacant property insurance.
Vacant property insurance providers have to make certain that there is a reduction in the probability of losses occurring on the property that they are thinking of covering. These procedures can include regular inspection of the property, sealing off windows and letterboxes and other types of risk management procedures. In some cases, the coverage provided can be restricted to only some areas. In instances such as this it is essential that the coverage is sufficient and handles risks that may be incurred on the property.
To better understand vacant property insurance contact an agent at Pacific Security Insurance to help answer your questions.