Maryland Vacant Building Insurance Coverage
Building owners beware. Vacant buildings have their own insurance coverage needs which may not be covered by your existing property insurance policy!
Do you have a vacant building or vacant house in Maryland? Do you have a partially vacant building? Huff Insurance can help you with your vacant building insurance or vacant dwelling insurance.
There are many reasons why a house or building maybe vacant or unoccupied. The house or building may be up for sale and awaiting settlement. You may have just purchased the vacant building and it needs to be renovated before you can move in. Or maybe the building is in the name of an Estate and nothing can be done with the building until the estate closes. Commercial buildings or rental properties may be vacant because the tenant just moved out and you are actively searching a replacement. In these cases, a vacant building insurance policy is needed to provide the necessary protection.
For insurance purposes, there are rating and coverage differences on a vacant/unoccupied building versus an occupied building. Generally when the building is occupied, losses and damage are generally spotted faster. A pipe that breaks in the middle of the day, maybe found in a few moments, rather than a few days or few weeks later where the damage is much more extensive. Also, vacant buildings or unoccupied buildings are seen as an attractive nuisance and they are much more susceptible to crime; whether it is the local neighborhood kids looking for a place to hang out, or the thief that is looking to make a few dollars by stealing and selling the copper out of the building.
Under your homeowners insurance policy or commercial building insurance policy there are limitations or exclusions should the building become vacant or unoccupied. Each company is slightly different, so read your insurance policy, but generally once the home is unoccupied or vacant for 45-60 days the coverage is limited on the structure, or building only. You may find that claims are uninsured by up to 15% and that there is no coverage for theft, vandalism, and some types of water claims. If you have a property that has recently become vacant or unoccupied, read your policy or speak with your licensed insurance professional to see how your coverage will respond. Just because someone “checks” on the property every day or the neighbors are “keeping an eye out” is not enough to prevent the insurance company from using these restrictions or limitations in coverage at the time of loss.
At Huff Insurance we can help you with all types of Vacant Buildings including:
- Vacant Buildings
- Partially Vacant Buildings
- Vacant Condo Units
- Vacant Leased Space
- Risks with renovations
- Residential & Commercial Risk
With a Vacant Building Insurance Policy, there are several options for the policy term. They are:
- 3 Month
- 6 Month
- 9 Month
- 12 Month
In addition to providing the property insurance coverage for your vacant building, we can also provide general liability insurance coverage in the event that someone is injured on the premises. For example, a real estate agent is showing the vacant home and the prospective buyer trips on some frayed carpet and breaks their ankle. You will be held responsible for their injuries. So in addition to the commercial property coverage insurance, you also need general liability insurance coverage as well.
When choosing a vacant dwelling insurance policy you should consider the following things:
- Can I extend the policy term by endorsement rather than having to do a new application?
- Do you offer payments on the policy?
- Is there a restriction on the length that the property can remain vacant?
- Is vandalism coverage included?
- Is independent contractor’s coverage available for risks with renovations?
- Is the company admitted in the state of Maryland and under the jurisdiction of the Maryland Insurance Administration?
At Huff Insurance we understand vacant and unoccupied buildings and we have the companies to meet your needs and give you a yes answer to all of the above questions. Give us a call at 410-647-1111 or complete the quote request on this page.