Why Is Vacant Building Insurance So Expensive?
The reason vacant building insurance is so pricey is that the insurance company is taking a significant amount of risk versus an occupied dwelling. If there is a loss, the additional time it takes to find the loss can cost the insurance company thousands of dollars; hence, the severity of claims is magnified. There are also the additional perils that an insurance company takes on for liability. Teenage kids drinking, vandalism, and frozen pipes to name a few. Remembering that insurance companies work on basis of large numbers, this severely impact the claims that are in your “pool”. The good news is that we have flexibility in how much you would like to insure your building to as well as the time period we insured it for. This can save you a considerable amount of money, but also can impact your claim settlement in the event of a claim.
Can I Finance The Premium?
Unfortunately, you can only finance the premium for a vacant building if the policy is for at least 1 year.
Does Vbi Operate In The State My Building Is In?
Yes. VBI operates in all 50 states and can usually find a policy to fit your needs.
What If There Are Contractors In The Building?
This can be a complex question. There is a difference between a builders risk policy and a vacant building policy. We will analyze your situation and let you know the best route for you-whether it be a builders risk policy or vacant building policy-and help you make the right choice.
What If I Am In A High Wind Area?
In most states, we can find wind coverage; however, this can significantly increase the premium of the policy.
Can I Cancel Once I Sell The Building?
No. Vacant building policies are fully earned for the time period. Once you purchase the policy, there are not returned premiums.
How Can I Pay For The Policy?
VBI can take credit cards or checks over the phone. We can usually get you a policy within a day in you can scan/fax back the simple application we send you as soon as possible.
Do I Have My Choice Of How Much Liability Coverage I Need?
Generally yes, depending on the company. We can usually write a policy that has $300,000, $500,000 or $1,000,000 in general liability coverage.
Do I Have To Insure My Building To Replacement Cost… I Paid Much Less For It?
No you do not; however, if you have a claim the insurance company will give you a depreciated value and in some cases a co-insurance penalty if the building is not insured to 80% of the replacement cost. This is in addition to the deductible which will be out of your pocket at well.
What Is The Definition Of “Vacant”?
Vacant is usually defined at a building that no one has slept in within the last 30 days; however, some companies do have different definitions of “vacant”.
Once The Building Is Occupied Can I Change The Insurance Over To A “Preferred” Market Policy?
Yes. As soon as the building becomes occupied, you will want to change it to a standard policy for you will probably need some additional coverage such as “Business Income” coverage.
Can I Name An Additional Insured On The Policy?
Yes. We can add on a mortgagee, contractor, or another person onto your policy. We can do this for general liability as well as property coverage.