Home Insurance Tips

Source: Jan Sutton, Farmers Insurance, Gainesville/Manassas/Warrenton insurance agency

Do you own a home or building that has been -- or will be -- vacant more than 60 days?

If so, an insurance policy review is in order.

Farmer's Insurance agent Jan Sutton advises all residential and commercial property owners to take a careful look at the vacancy clause of their insurance policy.

Sometimes, insurance clients think they can save money by holding onto their standard insurance policy after a building becomes vacant.

What they don't realize is that once a building is vacant for 60 days or more, their coverage is drastically reduced.

So, if somebody breaks in and spray paints the walls or otherwise vandalizes their building, owners are disappointed to learn that they aren't covered for the resulting loss and damages.

Or, if the loss is covered -- in the event of a fire, for example -- owners learn too late that they are only eligible for an 85% payout instead of the 100% payout they would have received if they had revised their insurance policy to cover their vacant buildings.

For example, if you own a $1 million building and it burns down -- and you haven't adjusted your insurance coverage to cover a vacant building -- you could lose out on $150,000 in insurance coverage you could have received if you had had appropriate coverage.

Some folks try to get away with calling a building occupied because they have left a desk or a few wooden pallets sitting in the middle of an otherwise vacant building.

But the policy is clear: "a building is vacant when it does not contain enough business personal property to conduct customary operations."

Why put your most valuable assets at risk to save a few hundred dollars? You could end up losing thousands!

For the protection you need, and the peace of mind you deserve, call:

Jan Sutton, Farmers Insurance

Serving Gainesville, Manassas and Warrenton, Virginia

703-369-4127