The red-hot Florida real estate market has started to cool slightly, and property investors and others are finding that homes aren’t selling or renting as quickly as they had been. If a property remains empty for 30 days or more, it’s often considered a “vacant dwelling.”
Types of Vacant Property
There are several kinds of properties that might be vacant, including:
- Rental properties which are between tenants
- Unoccupied inherited properties waiting to be sold
- Empty homes under contract
Why Vacant Properties are considered Higher Risk
Vacant properties are subject to higher risk than occupied ones, including higher risks of:
- Theft and vandalism. Thieves may target an empty property, stealing appliances, copper wires, aluminum pipes, or any furnishings left there. Vacant properties can also attract graffiti and other types of vandalism.
- Fire. Fires might be started on purpose, or accidentally by trespassers or squatters. They may also start due to poorly maintained heating systems or faulty wiring.
- Water damage or mold. A small leak can become a major headache with no one around to notice it. Leaks from a water heater or broken pipe can damage floors, furniture and walls, as well as lead to mold.
Protecting your vacant property
If you’re in the process of buying, selling, or renting property in Florida, there are several things you can do to protect your vacant property from risks such as these. Basic maintenance is key—keeping landscaping neat, collecting mail, and so on. Also make sure smoke alarms are functioning, and install interior lights on timers, and motion-activated exterior lights. Know where your water shut off is located so you can quickly turn your property’s water off if necessary. Consider a home security system if possible. And, of course, since this is humid Florida, keep the air conditioning on and/or consider a dehumidifier to keep mold at bay.
Vacant dwelling insurance
The most important way you can protect your real estate investment is by taking out a vacant dwelling policy since most standard homeowners insurance policies won’t cover insurance claims made on a vacant property. Most vacant dwelling policies provide coverage for the structure of a vacant property for basic named perils including fire, wind, lightning, and hail. You may also be able to buy coverage for theft, vandalism, and liability. Be aware that vacant dwelling policy losses are usually settled on an actual cash value (ACV) basis. Talk to your insurance agent to see what your options are.
Call L & M Insurance Group for all your property insurance needs
L & M Insurance Group agents have the experience and knowledge to help you protect your financial investment. We work closely with both property investors and individuals to find insurance coverage that best fits your unique needs at the best price possible. Request a quote online or call us at 813-672-4100 if you need a quote for vacant dwelling, or any other type of property insurance.
