Orlando Harmon
If you own a vacant home, you may need to purchase vacant home insurance to protect your property. Standard homeowners insurance policies often include a vacancy clause that limits or excludes coverage if a home is vacant for more than 30 to 60 days. Vacant home insurance can be purchased as a separate policy or as an add-on endorsement to an existing homeowners insurance policy. It is designed to protect homes that are vacant for an extended period and offers coverage for problems such as fire, windstorm, and hail damage, as well as vandalism and theft. The cost of vacant home insurance is typically higher than standard homeowners insurance due to the increased risks associated with vacant properties. When considering vacant home insurance, it is important to shop around and compare rates, coverage options, and policy duration minimums offered by different providers.
| Characteristics | Values |
|---|---|
| What is vacant home insurance? | A type of insurance that covers homes with no belongings inside and are not being lived in. |
| Who needs vacant home insurance? | Owners of vacant homes who want to protect their property from damage, theft, vandalism, etc. |
| How long does a home need to be vacant to require vacant home insurance? | This varies by insurance company, but typically ranges from 30 to 60 days. |
| What does vacant home insurance cover? | Vacant home insurance covers damage from fire, windstorm, hail, smoke, water intrusion, vandalism, theft, etc. |
| How much does vacant home insurance cost? | It is generally more expensive than standard homeowners insurance, ranging from 15% to 50% higher. |
| Where can you get vacant home insurance? | Big-name insurers like USAA, Farmers, and Progressive offer vacant home insurance policies. |
| What to do if you need vacant home insurance? | Contact your current homeowners insurance provider, shop around, and compare rates and coverage options. |
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What You'll Learn
- Vacant home insurance is more expensive than standard homeowners insurance
- Vacant homes are at a higher risk of vandalism, squatters and burst pipes
- A vacant home may have its utilities turned off
- Homeowners insurance may not cover vacant homes for more than 30–60 days
- Vacant home insurance can be purchased as its own policy or as an add-on
Vacant home insurance is more expensive than standard homeowners insurance
Vacant home insurance is a special type of insurance designed to protect homes that are empty for an extended period. This type of insurance is necessary because standard homeowners insurance policies often include a vacancy clause that limits or excludes coverage if a home is vacant for more than 30 to 60 days.
The higher risk associated with vacant homes leads to more expensive insurance claims. This increased risk results in higher premiums for vacant home insurance policies, which can range from 25% to 60% higher than standard homeowners insurance. For example, in Washington, a standard homeowner's premium costs $1,016 to $1,300 annually, while vacant home insurance would cost $1,524 to $1,950. Similarly, in Alabama, standard premiums range from $2,198 to $2,244, while vacant home insurance costs about $3,297 to $3,366.
The length of time a house has been vacant can also impact the cost of vacant home insurance. The longer a home remains vacant, the longer you will need to keep a vacant home insurance policy active, resulting in higher overall insurance costs.
It is important to note that not all insurance companies offer vacant home insurance, and the specific criteria for what constitutes a vacant home may vary between providers. Some insurance companies may offer short-term policies to cover temporary vacancies, while others may provide a vacancy permit to extend coverage for a standard homeowners insurance policy.
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Vacant homes are at a higher risk of vandalism, squatters and burst pipes
Vacant homes are at a higher risk of vandalism, squatters, and burst pipes. These issues can have costly consequences for homeowners, so it is important to be aware of the risks and take preventative measures.
Vandalism and crime: Vacant homes can be targets for vandalism and other criminal activities, such as drug dealing and theft. This is because vacant properties provide cover and a sense of insecurity in the community. Research has shown that concentrations of vacant buildings are often hotspots for crime, including aggravated assault, weapons violations, and homicide.
Squatters: Vacant homes are also at risk of being occupied by squatters, who may damage the property and create liability issues for the owner. Squatters can sue the owner over injuries sustained while on the property, and the owner is typically held liable.
Burst pipes: Vacant homes are more susceptible to burst pipes, especially during cold weather. Sporadic heating or a lack of heating can cause pipes to freeze and burst, leading to flooding, mould, and structural damage. To prevent this, regular maintenance and repairs are crucial, such as lagging internal and external pipes, insulating water storage tanks, and sealing air leaks.
To mitigate these risks, homeowners of vacant properties should consider obtaining vacant home insurance, which may differ from standard homeowners insurance policies in terms of coverage and deductibles. However, some insurance companies may not offer vacant home insurance, so it is important to consult with an independent insurance agent or broker to find the right coverage.
Overall, vacant homes are more vulnerable to various issues, and proper insurance coverage, along with proactive maintenance and security measures, can help reduce the potential risks and financial implications.
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A vacant home may have its utilities turned off
Secondly, turning off utilities can prevent potential damage to the property. Live water supplies, if left unmonitored, can cause leaks, flooding, and water damage, which can be costly to repair. There is also a risk of pipe explosions in winter if water lines freeze, and stagnant water can pose serious health risks, such as Legionnaires' disease. Additionally, electricity supplies to vacant properties may spark and cause fires, and active utility supplies can attract squatters and trespassers.
However, there are also advantages to keeping utilities on. Maintaining utilities can help deter burglars and vandals, and a functioning security system requires power. Some insurance companies require utilities to be on to keep the policy active. If you plan to sell the vacant home, keeping utilities on is advisable. Buyers typically want to see the property with everything in working order, and appraisers may need utilities to accurately evaluate the home.
Ultimately, the decision to turn off utilities in a vacant home depends on various factors, including financial considerations, property protection, and potential future use or sale of the home.
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Homeowners insurance may not cover vacant homes for more than 30–60 days
Homeowners insurance is designed to protect your primary residence from theft, fire, and other perils under the assumption that someone is living in the home. However, if a house is vacant, it may not be covered by a standard homeowners insurance policy for more than 30 to 60 days. This duration can vary depending on the insurance company and their specific guidelines, with some policies offering coverage for up to a year.
Vacancy is typically defined as a home with no furniture or personal belongings, while an unoccupied home retains these items and utilities. Insurance companies distinguish between these two states, and a home is generally considered vacant if it has been unoccupied for 30 to 60 or more days. This distinction is important because standard homeowners insurance policies often include a vacancy clause that limits or excludes coverage after a certain period of vacancy, usually 30 to 60 days. This clause reflects the increased risks associated with vacant properties, such as vandalism, squatters, and burst pipes.
If you anticipate that your home will be vacant for an extended period, it is essential to contact your insurance provider in advance. They may offer a vacant home insurance policy or an endorsement to your existing policy, providing coverage for problems like fire, windstorm, and hail damage. These policies are typically more expensive than standard homeowners insurance due to the higher risks involved.
It is worth noting that some insurance companies may not provide vacant home insurance, and you may need to switch to a different insurance carrier. Additionally, vacant home insurance may not cover all types of homes, and certain hazards or conditions may disqualify a home from coverage. Therefore, it is crucial to carefully review the terms and conditions of any vacant home insurance policy before purchasing it.
In conclusion, homeowners insurance may not cover vacant homes for more than 30 to 60 days, and it is important to understand the specific terms of your policy and explore alternative coverage options to ensure adequate protection for your vacant property.
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Vacant home insurance can be purchased as its own policy or as an add-on
If you own a vacant home, you may need vacant home insurance to protect your property. This is because regular homeowners insurance policies often include a vacancy clause that limits or excludes coverage if your home is vacant for more than 30 to 60 days.
The cost of vacant home insurance is typically higher than standard homeowners insurance due to the added risks associated with a vacant property. The specific coverage provided by vacant home insurance policies can vary depending on the insurance company. However, they generally cover the most essential types of damage that could occur when no one lives in a home, such as fire, windstorm, and hail damage. Some policies may also cover vandalism and theft, which are typically excluded from standard home insurance policies if the home is vacant.
It is important to note that the definition of a "vacant home" may vary between insurance companies. Some companies may deem a home vacant if no one lives there for at least 30 days, while others may extend this to 60 days or more. Additionally, a vacant home typically has no furniture or personal belongings, while an unoccupied home may still have utilities connected and be furnished, allowing someone to return and live there at any time.
When considering vacant home insurance, it is recommended to shop around and compare rates, coverage options, and policy duration minimums from different providers. It is also essential to review the specific terms and exclusions of the policy to ensure adequate coverage for your vacant home.
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Frequently asked questions
Vacant home insurance is designed to protect homes that are vacant for an extended period, usually more than 30-60 days. It covers the most common types of damage that could occur when no one lives in a home, such as fire, windstorm, and hail damage. It can be purchased as its own policy or as an add-on endorsement to an existing homeowners insurance policy.
Regular homeowners insurance policies often include a vacancy clause that limits or excludes coverage if a home is left vacant for more than 30-60 days. Vacant homes are at a higher risk of vandalism, theft, and other types of damage. Vacant home insurance can save you stress, time, and money if anything happens.
Contact your current homeowners insurance provider to see if they offer vacant home insurance or an endorsement to your current policy. If not, shop around for a new provider. Many big-name insurers like USAA, Farmers, and Progressive offer vacant home insurance policies.
