Insurance Cancellation Due to Vacancy
Hello BP. So I closed on my first two investment properties at the end of October 2022. One was fully occupied the other vacant.
The vacant property needed a complete turnover, deep cleaning, paint, new cabinets countertops, and other small odds and ends. My PM ensured me it would rent right away as they had people waiting.
Well, I got a letter from my insurance company saying if I don't fill the vacancy by Jan 10th they are canceling my insurance. They do not provide any options for vacant non-owner occupied properties.
Being a newb I had no idea. They never mentioned a timeline when I opened the policy so to me it was pretty shocking. What advice do you have? Do I start shopping for new insurance now? Am I going to have the same issue with it being vacant? My PM keeps telling me there's been a lot of inquiry and it will rent but its a little close to the deadline for my liking. thanks
Most Popular Reply
I would contact your insurance agent and see if you can get that pushed back by communicating it is actively being marketed, with showings, and should be rented soon. I had a similar warning to this on one of my properties, without a deadline, and this made the problem go away.
If they don't make progress for you, I would start to call other companies. I would recommend going through a insurance agent so you have a point of contact. I would not mention the vacancy to the new company, as your unit should be filled promptly.