The real estate market has undergone some drastic changes in the last few years in the aftermath of the pandemic. On the residential side, although there has been a housing boom with record-breaking sales, a recent report by ATTOM, a leading curator of real estate market data nationwide for land and property data, shows that in Q2 2022, 1.3 million single-family homes sit vacant. Among the 27.9 million investor-owned homes throughout the United States in the second quarter of 2022, about 905,000 were vacant.
On the commercial side, the office market contends with its highest vacancy in recent decades due to the pandemic. Expectations, however, are that occupancy and rent growth will stabilize this year as hybrid work models become more popular. In addition, cities are exploring new uses for millions of square feet of vacant office space by converting office buildings. Some developers are focusing on new condos and apartments, capitalizing on the location of office buildings to increase the supply of dense housing. Meanwhile, some other cities are developing industrial space to capitalize on the e-commerce boom, which has increased the value of warehouses.
While these vacant properties await tenant or owner occupancy, they all require Vacant Property insurance. Working with an experienced insurer and underwriters who specialize in this space will help you obtain coverage for your clients. Additionally, having access to a market for Vacant Property insurance will help you expand your geographic footprint in offering this product line.
Seneca Insurance Company is an experienced partner and understands that vacant risks are fundamentally different from occupied risks, necessitating customized solutions.
The Properties We Write
We insure office buildings, dwellings, estates, retail, mercantile, and warehouses. Our sweet spot covers buildings vacant for less than three years; buildings coming off a Builder’s Risk policy (we write Builder’s Risk insurance, too); recently vacated buildings; buildings with specific plans in place; and properties free of stock and furnishings.
We have no building age restrictions. Also, we can write vacant, occupied, or partially occupied properties on one policy, and there is no maximum or minimum number of buildings or any dwelling policy requirements – perfect for investment property owners. We don’t have vacancy length restrictions. Limits per location are available for up to $30 million in Total Insurable Value (TIV).
Our Vacant Property insurance solution is available on a package or monoline basis. We can also assist you throughout the real estate transitional process – going from new construction/ renovations to vacant and occupied.