Imagine you’ve moved out of your home, and it’s now empty. You might think your standard home insurance policy will continue to provide coverage, but that may not be the case. This is where vacant or empty home insurance comes into play. In this article, we’ll explore what vacant home insurance is, why it’s different from standard home insurance, what it covers, how much it costs, and how to buy it.
What is Vacant or Empty Home Insurance?
Vacant home insurance, also known as empty home insurance, is a type of insurance coverage specifically designed for homes that are empty or unoccupied. When the occupants move out, the risks associated with the property change significantly. Many insurance policies have provisions that may limit coverage if a home is vacant.
According to Cate Paolino, director of public policy at the National Association of Mutual Insurance Companies, not all home policies are the same. They differ in terms of coverage, conditions, and limits. This makes vacant property insurance necessary if a home will be empty for a certain period, usually 30 to 60 days.
Why is Vacant Home Coverage Different from Standard Home Insurance?
The risks associated with a vacant home are different from those of an occupied home. Without an occupant to notice potential issues, problems like a burst pipe can go unnoticed and become severe. Vandals and thieves are aware that vacant homes are easy targets, as there are usually no signs of occupancy.
Additionally, a vacant home with minimal personal property doesn’t require the same level of coverage as a lived-in home. These differences make vacant home insurance unique and necessary for protecting your empty property.
What Does Vacant Home Insurance Cover?
A vacant home insurance policy typically offers protection against common perils, including fire, wind damage, explosions, lightning, and hail. However, some policies may exclude coverage for theft and vandalism. Liability coverage is usually not included, although some insurance companies may offer it as an add-on.
The specific coverage and exclusions vary depending on the insurance company and the type of policy. It’s important to review the policy details and discuss your needs with an insurance agent to ensure you have the appropriate coverage for your vacant home.
How Much Does Vacant Home Insurance Cost?
The cost of vacant home insurance depends on several factors, such as the location of the property and its size. While estimates suggest that vacant home insurance can be two to three times more expensive than standard home insurance, the only way to determine the exact cost is by getting a personalized quote from an insurance provider.
To obtain vacant home insurance, you can start by contacting your current insurer. They may offer an endorsement to your existing policy to cover your vacant home. If that is not an option, or you want to compare costs, you can request quotes from different insurance companies. Remember to compare coverage and prices while considering the company’s reputation.
How to Buy Vacant Home Insurance
The process of buying vacant home insurance is similar to purchasing standard home insurance. Begin by contacting your current insurer to explore options for coverage. If needed, seek quotes from other insurance companies to ensure you’re getting the best coverage at a competitive price.
When choosing a policy, consider coverage, price, and the reputation of the insurance provider. Once you have made your decision, simply complete an application and pay the premium to secure your vacant home insurance.
FAQs
When do you need vacant home insurance?
There are various scenarios in which a property might be empty or unoccupied. Each situation may require a different insurance solution. Contact your insurance company to understand how they define and cover unoccupied and vacant homes.
What to do when leaving a house unoccupied or vacant?
If you’re leaving your home unoccupied or vacant for an extended period, take measures to protect your property:
- Maintain the exterior of your home to avoid giving the appearance of vacancy.
- Install security equipment, such as cameras, motion-sensing lights, and alarms.
- Remove valuables from the property before leaving.
- Ask a trusted friend or neighbor to check on the property regularly.
Conclusion
Vacant home insurance ensures that your empty property is protected from potential risks and damages. By understanding the unique coverage and risks associated with vacant homes, you can make an informed decision about the insurance policy that best suits your needs. Remember to consult with insurance professionals to find the right coverage for your vacant home.
