Creating a Solution During a Shift in the Dwelling Market
One of the uncertainties that many insureds are currently facing or will be facing in the coming months is how to properly protect their homes or rental properties that are vacant or undergoing renovations. There are more vacant homes now than ever before, as many landlords struggle to find tenants or as sales of properties are placed on hold. Vacant homes and rental properties present unique coverage needs and potential gaps in coverage that could leave your insureds in harm’s way.
As an example, within the ISO Dwelling Property 3 – Special Form Policy (DP 0003), certain coverages do not apply when a property has been vacant for a period of time (either 30 or 60 days depending on the form edition date). These coverages are:
- Glass breakage to the dwelling and other structures
- Vandalism and malicious mischief to the dwelling and other structures
- Theft or attempted theft to the dwelling and other structures
- Damage to covered personal property caused by burglars
In the ISO Dwelling Property 1 – Basic Form Policy (DP 0001), some of the same coverages are excluded when a property has been vacant for a period of time, such as vandalism and malicious mischief to the dwelling and other structures.
With these limitations in coverage, your insureds may be facing more uncertainty than they thought as they try to sell, renovate or find a tenant for their property. As insurance professionals, it is our job to make sure we are providing them with proper coverage for their vacant homes.
We’re here to help you plan for that uncertainty with our new Vacant Dwelling product now available on Personal Lines forms in Connecticut, Georgia, Illinois, Indiana, Michigan, Minnesota, Ohio, Pennsylvania, South Carolina and Virginia. In addition to helping you close the coverage gaps listed above, we are providing you and your insureds with the following advantages:
- No restriction on length of vacancy
- No minimum earned premium
- Property limits up to $1 million total insured value
- Liability limits up to $1 million
- Ability to cover renovation projects with up to $250,000 in non-structural renovations
- Flexible policy terms of 3, 6, 9 or 12 months
With quotes available online, over the phone or through your USLI underwriter, you’ll find it easy to take advantage of our competitive premiums, coverages and ease of doing business for your vacant dwelling needs.
As we continue to figure out what 2020 and the remainder of the decade have in store for us, we know a few things. We know we need to keep moving forward. We know we need to keep planning for the uncertainty in life. And we know we need to keep selling insurance. Uncertainty is the reason we sell insurance; without it, no one would ever need coverage for the unexpected or the unplanned.
For more information about our new Personal Lines Vacant Dwelling option,* please contact your underwriter.
As always, thank you for your support and business.
*Personal Lines Vacant Dwelling option is only available in CT, GA, IL, IN, MI, MN, OH, PA SC and VA. In all other states, we can consider Vacant Dwellings on commercial forms.
Contact Dan Lewis
Underwriter – Home Office | 888-523-5545, ext. 2626
Written by Jason Blade
June 4, 2020