Vacant Home Owner's Insurance

5 Replies

Hi All,

I'm getting ready to close on my first rehab home in about two weeks and I just found out that most companies will not issue policies for vacant homes.  I read that Farmers Insurance Co. offers protection, as well as some lesser known companies. 

Can anyone recommend a good company for vacant home owners insurance in Virginia?


I do not know of any companies out in your side of the woods, but I do know that you will want to be prepared for a higher premium.  Vacant home stuff is quite expensive compared to a homeowners policy or even a rental policy, at least in my experience. 

Good luck out there! 

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Hi Jade,

Joshua is correct; expect higher premiums. I use my Allstate agent who goes through American Modern Insurance. Congrats and much continued success. 

Tony - Thanks for the tip on Foremost. I will give them a try on my next project. 

I have several with State Farm in one state.  I also use Allstate in another state.  State Farm was/is better for me as the landlord/investor.  The Allstate policies cover between tenants but not if purchased empty for rehab until rented the first time.  I have had trouble with Allstate and I'm on my third agent in one state.  And that's without claims.
The Allstate office in the other state didn't run my policy through their in house review until after closing on my last policy.   No car insurance no policy.  I have four others with the waiver written in policy, one just months before by that agent.  So five days after closing I get a cancel notice for end of the month.  I went with State Farm.

Farmers Insurance owns Foremost Insurance. As a Farmers agent, I write many vacant or rehab properties through Foremost. Everybody is correct about the vacant properties costing more. This is due to the risk of the property being vandalized or just the chance the property will fall into dis-repair. Once you have a renter in the property then you can either switch the policy to a landlord policy with Foremost or depending on the type of property, you can switch it to a Farmers policy.

I love the rehab policies through Foremost because they only have a minimum earned premium of $250.00, and it has liability on the policy. Compared to a builders risk policy, on that type of policy, there is no liability. I would say that is a huge risk, so never liked that aspect. I always set my flippers up on a monthly payment plan so they only pay for the amount of time they are actually on that policy. The builders risk policies are fully earned premium, so no refunds even if you were only on the policy 1 month. 

For a rehab, Foremost is primarily concerned with the shell of the house. If there are siding, roofing, window or foundation issues, be sure to discuss this with the agent. Foremost will give you about a 45 day window max. to resolve these issues, but they must be discussed with the underwriter and pictures must be sent in, otherwise the property will be inspected, not pass and they will just cancel. I would encourage you to call a Farmers agent and discuss these options with them.