Unoccupied Property Insurance – Facts To be Conscious of
Unoccupied property insurance is the kind of insurance you are required to get to cover for damages that may occur when you are not living in the house for over 30 days. That is the limit for qualification of unoccupied property insurance. With different companies and agencies this limit varies but 30 days is generally the standard limit.
Property insurance covers the damage caused due to fire even if you are away. You can also choose to buy a home insurance package that covers different scenarios or perils like that of a robbery, damage or loss of contents, etc. If you have a regular home insurance policy then you are required to inform the company if you are going to be absent from your property for a period of over 30 days or whatever the required limit is for that particular company.
Unoccupied property insurance will cover the damage that occurs when you are away and the need for getting it separately is because the chances of damage occurring when you are away are higher than if you were at home. Since when you are away the items in your house will not be maintained and this might lead to the damage. So that is why you need to get unoccupied property insurance for a house you will not be residing in for a long period of time. If you do not notify the company of your absence then do not expect to get insured as the lack of notification will be considered as concealment of facts and the claim will be rejected.
Details On Unoccupied Property Insurance
Premiums for unoccupied property insurance are generally observed to be higher. If you have a regular home insurance plan and you notify the company of your plans to stay away for a while then you might get lower premiums. But this depends on the risks associated with the property you own. With the increase in risks the premium also increases. If however, the risks are minimized by the installation of adequate safety devices then the premium will not be raised.
There are some special circumstances or certain exclusions which remain the same for both general home insurance and unoccupied property insurance. Also when making claims, the insurer will get the value proportionate to the amount he has insured. For example if the house you are living in costs around $1000 and you have insurance worth around $500 then you will get a similar 50% insurance claim value. So if your house suffers damage worth $200 then you will get only $100. In these ways unoccupied property insurance is similar to regular home insurance.
As with all different types of insurance covers you should make sure you check for the best deal before settling with a company. There are different types of policies based on specific damage risks so you should check your property residence and the dangers it may be susceptible to and get the unoccupied property insurance which is right for you.