What is considered a vacant condo?
There are several reasons why your condo might be vacant for a period of time. You might have purchased it intending to use it as a vacation property or an investment, perhaps you’re doing renovations or possibly you’ve left on an extended vacation. Whatever the reason for your vacant condo, it’s becoming more and more common for properties to sit empty for a period of time.
As the owner of a vacant condo, it’s important to understand the implications of time used and what it means for the protection of your investment.
A vacant condo is distinguished from an occupied unit by your intention to return to it within a specific time period. An unoccupied unit is one that has been temporarily vacated, but to which you have every intention of returning. This applies if you’ve left home for a three-month vacation, for example, but are returning to live at your condo.
Your condo would be considered vacant if you’ve moved out and have no intention to return to live in it. This could be because you intend to use it as a vacation rental and it is empty for a period of time, or if you’ve purchased the property as an investment and no one will be living in it. Even a vacation property that you use personally that sits empty for the off-season would be considered vacant for the period of time you are not using it.
Why you need vacant condo insurance
Many people think that their home insurance will cover their property regardless of use, but it’s important to note that a vacant property is more than likely not covered by your regular insurance coverage. Vacant property insurance is typically more expensive than regular home insurance, and vacant condo insurance is no exception to this. The reason for this is that there is no one living in the property to check on it and if something goes wrong no one is there to mitigate the potential damage.
What type of insurance do vacant condos need?
You need to protect yourself with vacant condo insurance so that if something happens on your property – if someone is injured or the property is damaged – so that you don’t have to pay related damages or expenses out of pocket. For vacant condos this is effectively a type of General Liability coverage which is a commercial insurance product and you should get in touch with an ALIGNED insurance advocate to determine what coverage is needed on a case by case basis.
You may also wish to consider the following coverages:
- Property Insurance – this would cover your condo contents itself, as well as what is contained in it against extreme weather. It can also include vandalism and theft.
- Umbrella Liability Insurance -this coverage provides an extra layer of protection in the event of a major incident where general liability coverage is exceeded.
Find the Right Vacant Condo Insurance from ALIGNED
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