" Vacant Policy" with Landlord Insurance - great idea or waste of $ between tenants?

[Tricia O'Brien]

Hello Everyone!  Do you spend the extra money to buy a  "vacant policy " on your rentals if it is vacant more than 30 days between tenants? Have you ever had a fire claim or theft claim or other insurance claim on your rental home when it was vacant?  I have a rental single-family home in Indiana where the insurance is only active for 30 days after it becomes vacant.  Then I am supposed to notify my insurance agent that it is vacant, and they switch it to a "vacant home" policy at a higher rate. This is to cover you if it is going to be vacant for 2-3 months or longer in between tenants.  The rate on the dwelling part of the policy goes up 23% during the vacant period compared to what it was when occupied.  Is it worth it?  

It is a C home in a D neighborhood.  I have all the exterior lights on, one interior light on, and someone available to mow the lawn every 2 weeks. I'm trying to have a realtor or handyman go there at least once a week to do work or check up on the place.  

Thanks in advance! 

[Nathan Gesner]

Quote from @Tricia O'Brien:

If that's their policy, I would comply with it, particularly in that market. If you don't convert to a vacant home policy and a squatter burns the place down or a thief steals your copper pipes, you may not be covered.

[Gloria N Gear]

I have had 3 properties broken into while vacant - AC unit and appliances stolen -- all in Indianapolis, 2 B neighborhoods and a C neighborhood.  I personally would not take the risk. If you did have a fire, complete loss because you can bet that the insurance company would fight it because you did not have the "right" coverage.  My agent will just bump it up for the month and then right back down when it has a tenant in it and even pro-rate by the day.

[Theresa Harris]

First  your mortgage company may require you to have insurance.  Second if something happens to the home, would you rather not risk paying $100 for the insurance and them possibly denying the claim?  Lastly, you shouldn't need to have vacancy insurance often as it should be rented.

[Cameron Moore]

You are good for 90 days of vacancy on most policies so no need! 

[Ian L.]

Tricia, I definitely would get the vacancy coverage, in addition to the other smart precautions you are taking. It’s not worth the risk to avoid the relatively little additional expense. Not sure who your carrier is, but in KY our State Farm RDP for single family homes allows for 30 days coverage post move-out, then we add a vacancy endorsement which is only $45 flat rate. 

[Tricia O'Brien]

@Ian L.

Yes I got the vacancy coverage.  Is the vacancy endorsement $45 per month flat rate with State Farm? One weird thing about the vacancy coverage is it excludes some things... like if your kitchen appliances and window air conditioning units are stolen during the vacancy it does not cover those. Is that true with most vacancy coverage policies