Vacant House Insurance: What You Need To Know

Vacant home insurance is a type of insurance coverage for properties that are uninhabited or considered vacant. This type of insurance is important because typical homeowners insurance policies don't cover most claims on a vacant property due to the increased risks of theft, vandalism, and other damage. Vacant homes are often deemed vacant after a certain period, usually 30 to 60 days, and standard insurance policies may not cover vandalism, theft, or other problems that occur during this time. Vacant home insurance can be purchased as a separate policy or added to existing homeowners insurance as an endorsement, and it covers damage from fire, wind, hail, explosions, and other issues.

Vacant home insurance is required when a home is unoccupied for more than 30 days

Vacant home insurance is a type of specialty insurance that covers properties that are uninhabited or considered vacant. This type of insurance is important because standard homeowners insurance policies don't typically cover claims on vacant properties due to the increased risk of theft, vandalism, and other damage. Vacant homes are often targeted by thieves and vandals, and without someone there to watch over the property, the damage can be extensive.

Vacant home insurance can be purchased as a separate policy or as an endorsement to an existing homeowners policy. If purchased as a separate policy, you will no longer need to pay for standard homeowners insurance. An endorsement, on the other hand, serves as an add-on to your existing policy. It's important to note that most insurance companies will deny claims if your home is left vacant for longer than 30 days, so it's crucial to review your policy carefully and understand how your insurance company defines "vacancy."

There are a few scenarios where vacant home insurance may be necessary:

• You own a vacation home that you only visit a few times a year.
• You've purchased a new home but won't be moving in for several weeks.
• You're constantly travelling for extended periods.
• You're undergoing medical treatment that requires hospitalisation for a prolonged period.
• You're renovating your home and are temporarily living elsewhere.
• You're renting out a home and are in between tenants.

Vacant home insurance is designed to provide financial protection in the event of damage or loss to a vacant home. It typically covers problems such as fire, windstorm, and hail damage, as well as liability claims and personal property coverage. The cost of vacant home insurance is generally higher than standard homeowners insurance due to the increased risks associated with vacant properties.

If you plan to leave your home unoccupied for more than 30 days, it is essential to review your insurance policy and consider purchasing vacant home insurance to ensure you have the necessary coverage during your absence.

Vacant homes are more vulnerable to theft, vandalism and damage

Vacant homes are often targeted for theft because they are seen as easier targets than occupied homes. Thieves may be attracted to vacant homes because they know that there is no one there to catch them in the act or to deter them. Additionally, vacant homes may have valuable belongings inside that are left unprotected. This can result in a financial and emotional burden for the homeowner, as they may have to deal with the cost of repairing or replacing stolen items.

Vandalism is also a common issue with vacant homes. This can range from cosmetic damage, such as graffiti and broken windows, to more serious damage, such as stripping the home of its lead tiles or copper wiring. Vandalism can be costly and time-consuming to repair and can also have a negative impact on the aesthetics of the building and the surrounding area.

Vacant homes are also more susceptible to damage. This may be due to break-ins or vandalism, but it can also be caused by other factors such as water leaks, fire, or extreme weather conditions. Without someone there to discover and address these issues early on, the damage can become more severe and costly to repair. For example, a small water leak can turn into a burst pipe, which can lead to flooding and structural damage. Similarly, a small fire may turn into a larger blaze if it is not reported and put out quickly.

Overall, vacant homes are more vulnerable to theft, vandalism, and damage due to a lack of occupancy and security. This can result in financial and emotional burdens for homeowners, as well as pose a threat to neighbouring communities if the damage is not addressed in a timely manner.

Vacant home insurance can be purchased as a standalone policy or as an add-on to an existing policy

Vacant home insurance is a type of specialty insurance that covers homes that are uninhabited or considered vacant. This type of insurance is important because typical homeowners insurance policies don't cover most claims on vacant properties due to their increased risk of damage, theft, and vandalism. Vacant homes are also more likely to suffer from water and fire damage due to a lack of regular maintenance.

Vacant home insurance can be purchased as a standalone policy or added to an existing homeowners insurance policy as an endorsement. If purchased as a separate policy, you will no longer need to pay for a standard homeowners policy. However, if purchased as an endorsement, it serves as an add-on to your existing policy.

Some large national insurance companies, like State Farm and Farmers, offer coverage for vacant homes through endorsements or separate policies. It's important to note that vacant home insurance is generally more expensive than a standard homeowners insurance policy, with costs ranging from 15% to 60% higher on average.

Before purchasing vacant home insurance, it's essential to determine whether you need a separate policy or an add-on to your existing policy. You should also compare rates and coverage options from different insurance companies, as costs and covered perils can vary. Additionally, be sure to ask about refund policies if you need to cancel your coverage before the policy expires.

The cost of vacant home insurance is typically higher than standard homeowners insurance

Vacant home insurance is a special type of coverage designed for homes that are unoccupied for an extended period of time. This type of insurance is necessary because standard homeowners insurance policies don't typically cover claims on vacant properties. This is due to vacancy clauses, which restrict or exclude coverage on properties that have been vacant for a certain period of time, usually between 30 and 60 days.

Vacant homes are considered to be a greater insurance risk than occupied homes. This is because they are more vulnerable to break-ins, vandalism, and other damage. Additionally, without someone living in the home to discover issues like water leaks or report a fire early on, the damage to the property may be more severe.

Because of the increased risk associated with insuring vacant homes, insurance companies typically charge higher premiums for vacant home insurance than for standard homeowners insurance. The cost of vacant home insurance can be anywhere from 15% to 60% higher than a standard policy, depending on the insurance company and the specific details of the policy. On average, vacant home insurance costs around 25% to 50% more than standard homeowners insurance. For context, the average cost of homeowners insurance is $1,754 per year, so a vacant home insurance policy could cost upwards of $2,800 per year.

Vacant home insurance can be purchased as a separate policy or as an endorsement to an existing homeowners insurance policy. If purchased as a separate policy, the homeowner will no longer need to pay for a standard homeowners policy. However, if purchased as an endorsement, it serves as an add-on to the existing policy. Some insurance companies offer refunds for unused premiums if the house becomes occupied before the end of the policy term.

To save money on vacant home insurance, consider installing security measures and having someone regularly check on the property

Vacant home insurance is a type of specialty home insurance coverage for properties that are uninhabited or considered vacant. This type of insurance is important because typical homeowners insurance policies don't cover most claims on a vacant property due to vacancy clauses, which restrict or exclude coverage on properties that have been vacant for a certain period, usually 30 to 60 days. Vacant homes are often more vulnerable to theft, vandalism, and other damage, so insurance companies consider them a higher risk.

To save money on vacant home insurance, consider the following:

Installing Security Measures

Security systems can help deter break-ins and vandalism, which are common concerns for vacant homes. By installing security measures such as alarm systems, burglar alarms, fire alarms, and water leak detectors, you may be able to negotiate a discount on your insurance premium. Insurance companies view vacant homes as a higher risk, so taking proactive steps to mitigate that risk can work in your favour.

Having Someone Regularly Check on the Property

Asking a trusted friend or neighbour to regularly check on your vacant property can not only help identify potential issues early on but may also change how your insurance company classifies your home. If someone is regularly checking on the property, your insurance provider may no longer consider it "unoccupied" or "vacant," which could result in lower insurance rates.

Shop Around and Compare Quotes

Don't be afraid to shop around and compare quotes from different insurance providers. When doing so, consider factors beyond just the monthly costs. Look into deductibles, coverage limits, add-ons, and available discounts. Some companies may offer vacant home insurance as an endorsement to your existing policy, while others will require a separate policy. By exploring your options, you may find more affordable coverage that suits your needs.

Discuss Discount Opportunities with Your Insurance Company

It's worth discussing potential discount opportunities with your insurance company. They may be willing to work with you, especially if you've taken proactive steps to secure and maintain your vacant property. These decisions are often assessed on a case-by-case basis, so don't assume anything is off the table without first discussing it with your provider.

By implementing these strategies, you may be able to save a significant amount on your vacant home insurance, so it's worth exploring these options and having open conversations with your insurance company.

Frequently asked questions