“What if I break something?” The anxiety of managing vacant houses can actually be covered by existing insurance

Today, I would like to write about "vacant house management and insurance."

The reason is that recently, I have been receiving many questions and inquiries regarding vacant house management and insurance.
Things like, "Mr. Yamashita, what happens if I break something in a vacant house I've been entrusted with?" or "What should I do if I'm told something has gone missing?" and so on.

Besides that, what if I forget to turn off the faucet during a water flow test and cause flooding? What if a stone kicked up by a lawnmower breaks a neighbor's window? When people imagine these things, they get very worried and ask if there is any recommended insurance.

I understand this feeling well.

From the outside, vacant house management looks like a job that just involves checking on things.
But in reality, it is a job that involves handling a client's valuable property.

You are entrusted with keys, you enter the house, you turn on the water, and you mow the grass. In terms of the weight of responsibility, it is quite significant.

So, I will give you the answer first.

Many of the risks you are afraid of can be covered quite well just by combining existing insurance policies.
There is probably no need to be at a loss looking for a "new insurance specifically for vacant houses."

Why is it so hard to understand?

That said, many people assume that "there is no such thing as insurance for vacant houses."

Taking the "forgetting to turn off the faucet and causing flooding" example from earlier, the floors and walls of the vacant house get damaged, the remaining household goods get wet, and if the water seeps out, it can also cause damage to neighboring houses.
The management company that caused it might be asked for compensation, or their management responsibility might be called into question.

That is why if you look for a convenient single box called "vacant house insurance," you won't find it. The things that need to be protected are separate from the start.

What is important is to first separate "who is responsible to whom and for what." Once you can organize this, it is surprisingly easy to assign it to insurance.

Buildings and compensation for neighbors

First, let's address a common misunderstanding: "You can't get fire insurance once a house becomes vacant."
That is not the case at all.

There are fire insurance policies that will accept vacant houses.
Fires, typhoons, and theft are often covered.

However, the "residential" contract from when people were living there cannot necessarily be used as-is for a vacant house.
You inherited it but no one lives there, or it will be vacant for several years until it sells.
If the way it is used changes, you may need to notify the insurance company.
If you stay silent, it could lead to a situation where they say "that's not what we agreed upon" when the time comes.

Then, what if a roof tile flies off and damages a neighbor's car? What if an old wall collapses and injures a passerby? This cannot be covered by fire insurance.
This is because fire insurance is "money to repair your own building."

What works in these situations is a type of insurance called liability insurance.
To put it very simply, it is "money to compensate for damages caused to others."

There is one pitfall here.
There are quite a few people who think, "My home insurance has a personal liability rider, so my vacant house is also covered."
However, the rider you attached to your home does not necessarily take care of a distant vacant house.
This is a point where I want you to confirm by providing the address and usage of the vacant house, rather than just assuming.

Accidents on the management side can also be covered quite well

Now, this is the part I most want to convey today.
It is about the risks to the management business operators themselves.

Vacant house management is so complex that it cannot be described in a single word.
You hold keys, enter houses, turn on water, mow grass, take photos, report, and arrange for repair contractors.
It is all lumped together as "management," but in reality, it is a collection of completely different tasks.

And here is the interesting part: there are existing insurance policies that correspond to each one of these.

The concern raised by the person at the beginning,breaking a neighbor's window while mowing the grasscould potentially be covered by a contractor's liability insurance.

Forgetting to turn off the water after a flow test can also sometimes be covered by a special rider for post-work accidents.
If you lose a key, there are special riders for key replacement costs or entrusted items, and for leaks of indoor photos, there is information leakage insurance.
The safety net is different for each task.

The most important thing here is this.
Even if you just tell an insurance agent, "I do vacant house management," the necessary coverage will not be assembled.
That single phrase does not convey what you are actually doing.
Only by laying out your tasks one by one can they say, "Then you need this special rider."

I will be honest with you

I have written enthusiastically up to this point that "it can be covered more than you think."
However, there is one thing I want to tell you.

The content of insurance policies varies greatly from company to company and product to product.
Even with the same "personal liability rider," it is common for it to cover vacant houses at Company A but not at Company B.

That is why I do not want you to read this article and conclude that "we are safe too."
What I have written here is merely a map showing that "these types of insurance exist."

In the end, please be sure to contact your insurance company, tell them the address of the vacant house and what you will be doing there, and verify it. Please do this, even if it is a hassle.

By the way, there are still gaps that are difficult to cover with existing insurance, such as aging deterioration, termites, collapse due to earthquakes, or oversight during inspections.
That is precisely why it is important to first list your own risks.

The first thing to do is not to choose a product

So, to summarize.

The first thing you should do regarding insurance for vacant house management is not to choose a product by asking, "Which insurance is good?"
What you should do is break down and list your own tasks.
Do you enter the building? Do you hold keys? Do you use subcontractors?
Once you have completed this inventory, all that is left is to assign them to existing insurance policies one by one.

People often immediately say, "We need a new product specifically for vacant houses," but I think the order is reversed.

First, organize how much can be covered by current insurance, and fill in only the missing parts with specialized products. If you follow this order, you will not waste money on insurance premiums.

Vacant houses that are properly patrolled, recorded, and inspected are seen by insurance companies as "buildings that can be safely underwritten."

If there are any business operators who are currently worried about insurance, you are welcome to ask me directly via the official LINE account.
It may take some time, but your questions might end up supporting everyone else.

Let's work together to create a sustainable and worry-free approach to vacant house management.

▼ Thank you for reading until the end.
If you found this article even a little bit helpful, please "like," "comment," or "follow."

▼How to start a "Regional Happy Business" through weekend side hustles and weekday multiple jobs
"Your business might just save the 'community'."
When people think of vacant house management, they often think of real estate or construction professionals.
But in reality, it pairs well with a wide variety of industries.
In this series, we introduce "different industries" that create unexpected chemical reactions with vacant house management.
You are sure to find something that sparks an idea within you in "Different Industry x Vacant House Business."
Why not start with a "I'm a little curious"? Your intuition might be the first step toward changing the region.

▼ Click here for the association's website where you can read various topics related to vacant houses every day↓↓
https://www.akiyakanrishi.org/
▼ You can also see entries for the "Vacant House Photo Contest" on Instagram↓↓
https:、/www.instagram.com/akiyakanrishi/
▼ Akiyakanrisha is looking for business partners nationwide↓↓
https://www.akiyakanrisha.net/
▼ We have started a podcast on YouTube↓↓
https://www.youtube.com/@user-ve5wl5gv7k/podcasts
▼ You can add our official LINE account as a friend. Please feel free to use it for questions or consultations.↓↓