How to prepare homes for vacancy this summer

Half of U.S. adults said they are likely to take a vacation this summer, according to a study by The Points Guy and Healthline Media.

After a summer under lockdown in 2020 that caused widespread travel cancellations, many Americans are eager to embark on a trip this summer.

According to a recent study by The Points Guy and Healthline Media, 50% of U.S. adults said they are likely to take at least one vacation from June to September 2021. “Some Americans may not have had a summer vacation since 2019, and so there’s clearly a lot of pent-up demand,” said Melanie Lieberman, senior travel editor at The Points Guy, in a statement.

This surge in vacations will result in more homes to be vacant this summer. Moreover, as the economy moves into a post-COVID era, homes also will be left unoccupied for several hours most days as adults return to the office and children resume typical summer activities, such as camp.

To help clients prepare for home vacancy this season, Jennifer Wilbert, assistant vice president of personal insurance property at Travelers, offers the following five tips for homeowners:

1. It’s all about maintenance. Before departing on a trip, it’s crucial that homeowners complete a routine maintenance check on their house. Here is a simple checklist to follow:

Get the roof inspected, clean gutters, and check downspouts to be sure water moves away from the home.
Unplug all unnecessary appliances to reduce energy cost and fire risk.
Check smoke detectors and batteries.
Set the thermostat to an “away” setting to save energy.
Remove dead trees or overhanging limbs from the property.
Ask a friend, neighbor or relative if they are available for emergency situations and to monitor the home for any damage.

2. Check water pipes. Twenty-three percent of homeowners insurance claims result from water damage unrelated to weather events, such as leaking pipes, according to Travelers data. Homeowners should schedule an inspection with a plumber to make sure that there are no risk factors for pipes. Consider shutting off the main water valve or asking a neighbor to check to make sure leaks don’t go unnoticed for an extended time.

There also are many smart home solutions that can help detect and alert homeowners of leaks. Water sensors and low-temperature sensors are affordable safeguards to monitor for moisture, and smart shut-off valves automatically turn off the water if a leak is detected. Some insurance providers offer discounts when these types of devices are installed, so homeowners can save on their policies and secure their homes at the same time.

3. Do a deep clean. It’s a nice perk to walk into a clean home after a long trip, but doing a deep clean before going on vacation can also prevent things from going awry, like a bug or rodent infestation. Be sure to mop and vacuum the floors, scrub the toilets and sinks, and dispose of any perishables that could go bad.

4. Fend off burglars. Making it look like someone is home can help thwart thieves from a break-in and offer homeowners peace of mind. Program any smart electronics, like a TV or radio, to come on at a certain time to show activity. Arrange to have mail and package deliveries forwarded, hire someone to mow the lawn, and set up motion-sensitive exterior lights or internal lights on timers.

In case someone does break in, confirm that alarm systems are working and activated upon leaving, store valuables in a safe deposit box or secure location outside the home, and secure external doors and windows with deadbolt locks.

5. Consult an insurance agent. Even with thorough preparation, things can still go wrong while away, so homeowners should make sure their insurance policy has them covered should an emergency pop up during their trip. Encourage clients to check in with their insurance agent to ensure their policies includes home vacancy as well as for any savings that they may be able to take advantage of due to the use of smart, preventative measures.

Leave a Reply Cancel reply

Commercial P&C Insurance

Commercial Office Space Set for a Strong Comeback

The sustained increase in demand for office space across the nation since late 2022 suggests that the market has moved past its lowest point, according to insights from the real estate technology platform, VTS. Demand for office space began to rise in late 2022 and continued into early 2023. Since then, the office market has experienced a period of stability and growth, supported by favorable economic factors, indicating a market rebound. This conclusion is drawn from the VTS Office Demand Index (VODI), which tracks unique new tenant tour requests for office properties in key U.S. markets. The VODI serves as an early indicator of future office leasing activity. According to the index, demand for office space has grown consistently over the past 12 months, closing the second quarter with a 17% year-over-year increase and a 34% rise from the VODI’s lowest point in December 2022. A significant shift in office-based employment patterns further supports the belief that demand for office space has stabilized. After reaching its peak in August 2022, office-based employment declined by 3.9% in early 2024. However, this trend has since stabilized, and employment growth has remained steady. Additionally, a recent decrease in work-from-home rates has fueled the renewed demand for office space. “They say you can only recognize a market bottom after it has passed, and the office space market is no exception. Following what we now see as the bottom, the national demand has gradually increased, though it remains susceptible to economic challenges,” said Nick Romito, CEO of VTS. “However, the growth observed in VODI over the past 18 months, coupled with positive trends in the office-using workforce, suggests that the market has reset, and the worst is behind us.” It’s important to note that this national trend does not impact all local markets equally. Cities like Los Angeles and New York City have seen healthy growth in office space demand, while markets such as San Francisco and Washington, D.C., have experienced prolonged stagnation. In Los Angeles, office space demand surged in the second quarter, briefly surpassing pre-COVID levels, driven by an increase in the average size of office spaces sought by tenants. New York City followed a similar overall pattern, though with some softness in the second quarter. Conversely, San Francisco’s demand for office space remains unpredictable, largely due to its tech-focused workforce, which continues to favor remote work more than other industries. “Markets heavily dependent on the tech sector, like San Francisco and Seattle, are on a markedly different post-COVID recovery path compared to more diversified markets like Los Angeles and New York City. It may take some time before we see office demand in San Francisco and Seattle return to pre-COVID levels,” added Ryan Masiello, Chief Strategy Officer at VTS.

Cyber Liability

Global IT Outage Puts Business Interruption Insurance in the Spotlight

In July, a global IT outage had a significant impact on business interruption insurance policies, overshadowing the effects on cyber insurance coverages. “This incident wasn’t a result of a malicious attack, which is why typical cyber insurance policies may not have been activated,” explained Peter McMurtrie, a partner in West Monroe’s insurance sector, in an interview with PropertyCasualty360.com. “Where coverage was applicable, factors like deductible amounts, waiting periods, and coverage limits played a critical role in determining the extent of exposure,” McMurtrie noted. “Standard policies for small businesses were less likely to offer coverage, while more complex policies for mid-sized companies and Fortune 500 corporations may have included broader triggers for non-malicious outages caused by third-party software issues.” The outage was triggered by a software update on July 19, 2024, by cybersecurity firm CrowdStrike, which affected organizations worldwide using Microsoft Windows. This interruption had far-reaching consequences, including disrupting hospital systems, media outlets, financial institutions, delaying thousands of flights, and halting daily business operations. McMurtrie emphasized that while the initial impact of the outage was similar for both large and small businesses, the ability to recover operations and whether insurance covered the loss of business income varied. “Larger companies are more likely to have advanced disaster recovery plans that ensure service redundancy following unexpected outages,” he added. “Their insurance programs also tend to cover a wider range of incidents.” According to Microsoft, the CrowdStrike update error affected over 8.5 million Windows devices globally. The incident highlighted the interconnected nature of our global ecosystem, including cloud providers, software platforms, security services, and their clients. “It’s a stark reminder of the importance of prioritizing safe deployment and disaster recovery across the tech industry,” the company said in a blog post. McMurtrie pointed out that the outage’s widespread impact was largely due to its effect on organizations that are critical to societal infrastructure—sectors like agriculture, airlines, banking, energy, government, healthcare, manufacturing, and retail. “Insurance companies base their risk appetite on their ability to understand and price risks appropriately. This becomes increasingly challenging with emerging threats,” he said. “However, I anticipate that insurers will respond by clarifying policy language, refining risk selection criteria, and possibly developing new products specifically designed for this evolving exposure.”

How to prepare homes for vacancy this summer