The Vacant Building Boom Creates a Big Insurance Need
The U.S. housing market is constantly evolving. According to the U.S. Census Bureau, of the 139 million homes in the U.S., 17 million are vacant. Many investors are taking advantage of these vacated homes by purchasing them with the intent to renovate them into upscale living spaces to rent or sell.
USLI caters to investors’ needs by offering property and liability coverages for vacant buildings as well as including coverage for renovations. We also broadened our appetite to satisfy increasing property values and construction costs, making it even easier for you to obtain a quote and service your policy.
Our Vacant Building product now accommodates buildings with up to $1 million in nonstructural renovations. Due to this increased threshold, we are able to write these buildings on admitted paper and offer Direct Bill options to the insured, which makes policy maintenance payments even easier.
In addition to renovation activity, vacant buildings face unique loss exposures due to less foot traffic and upkeep. This makes having appropriate coverage even more important. Take the following general liability claim as an example of the circumstances that can lead to a vacant building claim:
- A piece of metal roofing material fell from an insured’s vacant building and injured a person walking below. The claimant sustained serious back and neck injuries and was unable to work. He hired an attorney who filed suit against the policyholder.
Also consider the unique property claims these buildings are subject to:
- Vagrants broke into an insured’s vacant building during an ice storm. They started a fire to keep warm. The fire soon became hostile and resulted in a total loss. The insured was indemnified under the policy for this loss.
USLI has the perfect product for your vacant buildings — with an even greater appetite for the renovations.
Some of our key product advantages include:
- No restrictions on length of vacancy, building age or building type (residential, commercial, etc.)
- Direct Bill available on annual policy terms
- Liability limits up to $1 million/$2 million, with excess limits available
- Policy terms of 3, 6, 9 or 12 months
- Independent contractors coverage available for buildings under renovation
- Package or monoline policies and special cause of loss available
With quotes available online, over the phone or through your USLI underwriter, you’ll find it easy to take advantage of our competitive minimum premiums and ease of doing business for your vacant building needs.
As always, thank you for your support and business.
Contact Kate Shuron
Product Leader | 888-523-5545, ext. 2064
Contact Dennis Hufford
Assistant Product Leader | 888-523-5545, ext. 2183
Written by Jacob Dawson
March 5, 2020