As a property owner, depending on the type of property, you have a plethora of insurance policies you need to pay up in order to do anything with your property. You can’t sell, rent or lease without some form of coverage. This also applies if you plan on doing nothing with your property and just let it sit there while you decide what to do from that point onward.
This is called Unoccupied Property Insurance. This insurance is one of the few not required by law, but can be one of the most important you will ever have on your property. In most instances as a property owner you pay taxes on your property, perform maintenance and upkeep to specified standards regulated by your local and federal government, as well as keep various forms of insurance, but an unoccupied insurance is one most land owners don’t think of. This is to cover property owners who leave their piece of property vacant for an extended period of time.
In most cases a current insurance policy will convert into one that covers an Unoccupied Insurance policy but sometimes this is not the case. One would be surprised what is considered an unoccupied property by the insurance companies. A summer or winter home is considered an unoccupied property during the months it is not in use. This is the one consideration people don’t think about when they have second or third homes for seasonal or special on occasional use.
An unoccupied property is a greater risk to any underwriter or insuring company so this form of coverage will indeed cost you more money but will be most worth it in the end. This is because an unoccupied property has no-one available on the premise to protect or maintain upkeep in the case of an emergency and is considered a high risk. However the coverage is not required by law.