Competition in the Vacant Home Insurance Market?

Many people call us and ask, why are there only a few insurance companies in my State that will offer vacant homeowners insurance? There are over 10 insurance companies that want to sell me regular homeowners insurance when I am living in the home, but when the home goes vacant or empty, I only have 2 or perhaps 3 choices in my State. Some States may not have even three choices.

The first reason is, none of the large "major" homeowners insurance companies offer a vacant home insurance product. The big guys just don't want to be in the business. The next logical question we get from customers is, why don't they offer a product? The main reason, and at least the reason they want you to believe, is there is too much additional risk in vacant home insurance and it requires special underwriting. We do agree a carrier takes on additional risk when they are asked to insure a house that is empty or vacant and needs vacant home insurance.

Vacant home insurance Now offers a very high quality vacant home insurance program. VHIN used to offer what much of the market now offers, a lower level of insurance for vacant home insurance, however we have found the premium to be very close between a high quality insurance program and a low quality program. The result: it just is not worth it to offer reduced and "watered down" coverage when high quality programs are available for perhaps just $100 more per year.

Are there big differences in insurance coverage, absolutely! All risk coverage is far superior over named perils which may only offer insurance coverage if 1 of a select few named perils occur. Offer a reduced and limited coverage can just lead to denied claims and unhappy clients.