Vacancy Insurance

I’m in escrow and the lender is requiring 6 months of vacancy insurance. I also read that Freddie Mac requires this on all properties when you own greater than one. Is this true? What can I expect to pay?


I’ve never heard of vacancy insurance and I can’t possibly understand why you would need it. Vacancies are a NORMAL part of the business. I have dozens of rentals and don’t now have (nor have I ever had) vacancy insurance.

Good Luck,


Are you sure they’re not talking about “lost rent” coverage? There is a coverage you can get to cover your lost rent if something happens to the property to make it uninhabitable. Not sure on cost, but that might be their intent on this one since it’s an income property.

Thanks guys. Yes, its rent loss insurance. I didnt realize it but its part of the general coverage you can get. So if the place burns down and it takes a year to rebuild, I’ll receive the rent income as part of the insurance settlement. As far as price its cheap, as the entire policy is about $10/month. Its a townhouse so the HOA has insurance that covers the main structure. I just need insurance for the interior finishes, applicances, liability etc.

When I bought a townhouse last year it wasnt required. Now it is (both times using Wells Fargo). I guess thats part of their new willingness to lend. :huh

When I bought my first rental property it was required. Maybe you bought the first one as owner occupied and hence they didn’t require it?