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Vacant Properties: A Risky Proposition for Insurance Companies

Insurance companies consider vacant properties to be a problem because they present a higher risk of damage and liability compared to properties that are occupied. There are several reasons for this:

  • Vacant properties are more vulnerable to vandalism, theft, and other types of damage because there's no one around to deter or report such activities. In addition, if a problem occurs and no one is there to address it, it could lead to more extensive damage and higher repair costs.

  • Vacant properties can also attract squatters, who may cause damage to the property or pose a liability risk if they get injured on the premises. Insurance companies may require additional coverage or precautions for vacant properties to mitigate these risks.

  • Vacant properties may also be more susceptible to natural disasters or weather-related damage, such as frozen pipes or roof leaks, if there's no one there to maintain or monitor the property. This can lead to higher insurance claims or premiums for the property owner.

Some insurance companies may have specific policies or restrictions for insuring vacant properties, such as requiring regular inspections, limiting coverage for certain types of damage, or excluding coverage for certain types of liability claims. It's important to check with your insurance provider to understand any requirements or limitations for insuring a vacant property. Property owners need to take steps to minimize the risks associated with vacant properties. This can include:

  1. Regular inspections: Property owners should conduct regular inspections to identify any issues and address them promptly.

  2. Maintenance: Maintaining the property regularly can help prevent damage caused by neglect or lack of upkeep.

  3. Security measures: Installing security systems, such as alarms and cameras, can deter trespassers and unauthorized visitors.

  4. Occupancy monitoring: Having someone check on the property regularly can help identify issues and prevent damage from going undetected.

  5. Vacant property insurance: Some insurance companies offer specific policies for vacant properties that provide coverage for the unique risks associated with them.

By taking these steps, property owners can minimize the risks associated with vacant properties, making them more insurable and reducing the likelihood of costly damage or liability issues. At 12 Gates Property Services, we specialize in managing vacant properties so they look their best and stay in good condition while they are sitting vacant prior to selling or renting. Our services include:

  • Exterior/interior inspections

  • Graffiti removal

  • Cleanups

  • Debris removal

  • Snow removal

  • Lawncare

  • Plumbing winterization

  • Pool securement

  • and other seasonal maintenance services

Contact us for a free consultation and for More Info

12 Gates Property Services ~ Experts in Vacant Properties PROTECTING PROPERTIES. MINIMIZING LOSS

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