The Vacant Home Insurance Refund Process

Many people have asked us, if a Lloyd's of London policy is chosen for vacant homeowners insurance do they have to commit for the entire six month policy period and if not, what is the refund process for vacant home insurance policies.

The Lloyd's of London vacant home insurance plan is a minimum six month program paid in full but 90 days of premium can be refunded for early cancellation. There is a one time policy cost typically of about $65 that is not refundable but 1/2 of the pure premium is fully refundable.

The bottom line is, clients are only "on the hook" for 90 days of paid coverage and the rest of the premium in these vacant homeowners insurance policies is fully refundable. This also applies to policies for vacant condo insurance and vacant townhouse insurance in all States where the program is available.

Vacant Townhouse Insurance not The Same Process As Insuring an Empty Condo

Vacant Home Insurance now, in addition to providing vacant homeowners insurance to single family homes also provides vacant townhouse insurance and vacant condo insurance.

Unlike an empty or unoccupied condominium that needs special insurance coverage, a townhouse that is not being lived in needs much more coverage when writing vacant town-home insurance. If you are, by legal definition, living in a condo there is a master association policy that covers the part of the structure that the condo owns, typically the roof, grounds, and outside walls. When securing vacant condo insurance it's usually only necessary to insure the walls in.

Although someone that lives in a townhouse also pays dues into an association, there is no master insurance policy that covers any part of the persons townhouse (in most cases). The owner is responsible for insuring 100% of the dwelling up until the legal barrier where the other townhouse starts next door. Unlike a condo, providing vacant townhouse insurance means the dwelling will need to be insured for an amount that will be very close to the sale price unless there is extraordinary value in the real estate location.

When you need to insure a condo, the sale price can be hundreds of thousands of dollars more than the amount you need to insure for.