Multiple house owners have to leave their property unguarded and unoccupied at certain situations for various reasons. It commonly happens when the owners are about to move to some other property, when they are getting their property renovated and even at times when the owners leave the property unoccupied for the new tenants to come in.
It is important for the owners to get their property insured, specially when they leave it unoccupied. The home insurance protects the property and it’s possessions from any danger that it can face.
As standard insurances don’t apply when the property is kept unoccupied over a month, owners need to sign up for short term insurances. Though the monthly premiums for these short term insurances are higher than the normal ones, the significance of these insurances cannot be ignored.
How Does It Function?
The short term insurances are mainly prepared for owners that are planning to sell their property, renovate their property,etc. Just like normal home insurance, the short term insurances cover for any damage that the property might face like fire, water, theft etc. An owner can choose to take the insurance for any period of time that he wants but must keep in mind that various insurance companies limit the number of policies that one can apply for in one year
Let us look at a a couple of factors that you should bear in mind before choosing a short term insurance:
The Ideal Amount Of Cover :
It is very important for owners to check the level of cover the insurance provides before actually taking the insurance. The owners can scrutinize this aspect by checking the small print of the insurance and this is so important as the level of cover the insurance provides depends on insurer. It is common for insurers to refuse payment in case the property gets robbed or if it gets damaged due to renovation or forced entry. In addition to that the insurers check for a few documents such as previous insurance papers, detailed termite inspection report from a reputable company, etc.
It is very important to keep in mind that an owner needs to insure both his building and contents of the building separately while going for short term insurances. While the cover amount for the building should be based on the rebuilding costs rather than the original value of the property. The cover for the contents on the other hand should be enough to cover the contents of the building if they are damaged or destroyed.
The owners need to correctly estimate the amount of cover required by their property as going for an amount that is not enough to cover the entire property can have serious monetary consequences and over insuring generally means paying excess for unrequired cover..
Avoid Excessive Payment :
Owners should compare various insurance quotes before applying for an insurance to make sure that they buy the insurance that suits their requirements. It is common knowledge that premium for short term insurances are much higher than normal home insurance and the reason for that is the properties face greater danger when they are left unoccupied compared to a normal scenarios. For example when a property is left unoccupied, small issues like a burst pipe or a fire can cause much more damage as there is no one to fix it or resolve the issue. And the fact the premiums for short term insurances are much higher to the normal insurances makes it obvious that owners should compare various quotes and scrutinize the market properly before investing.