Are you buying vacant land where no other building exists? Do you know leaving your property vacant can risk your ownership? An unoccupied property is at great risk of vandalism, robbery, and damage. That is why many property insurance companies feel reluctant when it comes to empty property insurance.
However, in case you already have a general property insurance policy, and you left your house or land vacant for longer than the policy allows. In that case, it will be considered a vacant property. As a result, the insurer may cancel your policy, place restrictions on coverage, impose additional charges on any claim that arises when the property is vacant.
Moreover, the insurer won’t pay in case of a loss. So, before you leave your property vacant, it is crucial to buy building insurance for an empty property. If you are looking forward to buying house insurance for an empty property, it can turn out to be the best decision. However, before you go ahead, you need to know why you should buy an empty property insurance policy. In this guide, we will discuss the same.
What are the risks involved in the empty property?
Public liability on vacant property: As the owner of a vacant property, you will be responsible for maintaining your land and keeping it safe. If any injury, death, or damage occurs on your land, as per common law, you will be responsible. If someone takes a shortcut to reach their destination and gets injured, you may have to face legal actions. Even an illegal trespasser can ask for compensation if they get injured on your land. In order to avoid all this, it is crucial to buy an empty property insurance policy.
Property ownership: There are a few property ownership risks that can happen with any property. For instance, some vacant landowners found extended boundary fences on their land, preventing them from using their land completely. On the other hand, some may find outstanding rates, charges, and land tax owned by previous owners that were not conveyed to you when buying a property. While such incidents don’t happen with every owner, they can be costly if they happen. In such a case, buying home insurance for vacant property can turn out to be an effective option.
How to reduce the risks related to vacant properties?
Increase security: The best way to protect your vacant property from vandalism, theft, and trespassers is to install security cameras and alarms to keep an eye on your property. You can also appoint a security guard or use fencing and doors to protect your property.
Go for regular inspections: We understand it is difficult to find some time to visit your property. But when you visit your property at regular intervals, it will help you keep your property safe and ensure no one can construct a building on your land without your permission.
Buy the insurance policy: Buying empty property insurance is a great way to cover your loss in case someone occupies your land or gets injured on your property. Your insurance company will pay compensation for your loss.
The Bottom Line
Now that you know why you should buy empty property insurance and how to reduce the risks of theft and vandalism, it is time to find a reliable insurance company. You can find many options for insurance companies, but you should never choose a random company. Always take time to investigate the background of your insurance company, and if you find everything is fine, only then go ahead.
