Whole vs Term

If you are a homeowner, most probably you have home insurance or at least have heard of it before. But are you aware that there is also a plan for vacant properties? Do not get all confused as these plans are totally different from each other. The terms and conditions on vacant property insurance vary significantly to that of a conventional house insurance policy.

Several empty home insurance policies contain endorsements and warranties applied to them. Some of these can include a contractor’s clause. For example, a property that is currently under renovation. This means that any damage caused by the contractor will not be covered. Therefore you have to make sure that the contractor has the proper public liability and a contractors all risk policy in place to protect your empty home.

On the other hand, for buildings that are vacant, different levels of cover can be obtained. Some opt to get the basic cover of fire, lightening, earthquake, explosion and aircraft damage on empty home insurance policies. While others choose full cover on vacant home insurance that includes property owner’s liability.

One important thing you must remember is to declare all material facts to the consultant. Any false information could lead to a claim not being paid out or the policy being invalidated.