The Silent Risk: Why Your Standard Policy Won’t Cover a Vacant Property
The Silent Risk: Why Your Standard Policy Won’t Cover a Vacant Property
It’s a common scenario in Louisville: You’ve purchased a “fixer-upper” investment property, or perhaps you are managing an estate after a loved one has passed, and the house is sitting empty while it goes through probate. You assume the existing homeowner’s policy covers it.
WARNING: This assumption could cost you everything.
Most standard property insurance policies have a “Vacancy Clause.” Typically, if a property is unoccupied for more than 30 to 60 days, coverage for vandalism, glass breakage, water damage, and even fire can be completely voided.
At Dick Watts Insurance, we specialize in the “hard-to-place” risks that other agents shy away from. Here is what you need to know about protecting Vacant Buildings and Vacant Land.
Why are Vacant Buildings So Hard to Insure?
Insurance carriers hate uncertainty. An empty building is a magnet for trouble. Without a tenant or owner present:
Vandalism & Theft: Copper theft and graffiti are constant threats.
Undetected Damage: A small pipe leak can turn into a massive mold claim if no one is there to catch it for weeks.
Squatters: Unauthorized occupants can cause fires or liability issues.
Because of these risks, standard carriers will drop you. You need a Specialty Vacant Building Policy.
What Does Vacant Building Insurance Cover?
A specialized policy from an independent agent can restore the protection you need. We can structure policies for:
Renovation Projects: “Builder’s Risk” coverage for properties undergoing rehab.
Commercial Vacancies: For retail spaces or offices between tenants.
Residential Vacancies: For homes on the market or in probate.
We offer flexible terms—3, 6, or 12-month policies—so you aren’t locked into a long-term contract if you sell the property next month.
Don’t Forget the Land: Vacant Land Liability
Do you own a plot of undeveloped land in Jefferson or Oldham County? You might think, “It’s just dirt; what could happen?”
The Reality: If someone trespasses on your land and gets injured—perhaps an ATV accident or a child playing near a creek—you can still be sued. Vacant Land Liability is incredibly affordable, yet it provides a critical shield for your assets. It protects you against lawsuits for bodily injury occurring on your undeveloped property.
The Independent Advantage for Vacant Risks
Finding these policies on your own is difficult. Most “direct” online insurers simply say “No” when you check the box for “Vacant.”
As a Local Independent Agent, Dick Watts Insurance has access to Excess & Surplus (E&S) markets. These are specialized insurance companies designed specifically for higher-risk categories like vacant buildings and land.
We know the markets: We know which carriers offer the best rates for a 3-month renovation vs. a long-term vacancy.
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We know the requirements: We can guide you on requirements like boarding up windows or maintaining heat to ensure your claim gets paid.
Got an empty building? Don’t leave it exposed.
Call Dick Watts Insurance at (502) 245-3625. We have the market access to get your vacant property covered fast, usually within 24 hours.
