Vacant Homeowners Insurance: What It Is And When You Need It
Updated: June 3, 2024
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Vacant homeowners insurance is a specialized policy designed to protect homes that are unoccupied for extended periods. Compared to standard homeowners insurance, which is typically regularly occupied, vacant homeowners insurance addresses the unique risks associated with vacant properties, such as vandalism, theft and undetected damage.
Vacant homeowners insurance provides protection for unoccupied homes against risks like vandalism and theft.
A home is considered vacant if it is unoccupied for 30 to 60 days, lacks personal belongings or has disconnected utilities, making it more vulnerable to certain risks.
Vacant homeowners insurance does not cover routine maintenance issues, intentional damage by the homeowner, wear and tear or flood or earthquake damage without specific additional policies.
Vacant homeowners insurance is a policy that covers properties left unoccupied for extended periods, typically 30 to 60 days. This type of insurance addresses the unique risks associated with vacant properties, which are more susceptible to certain types of damage and theft due to the lack of regular monitoring and maintenance.
Here’s what vacant homeowners insurance typically covers:
Vandalism and Theft
Vacant properties are often targets for vandalism and theft because they are less likely to be monitored. This coverage protects against damage or loss resulting from these events.
Fire and Smoke Damage
Fires can cause significant damage to a home, and vacant homes are particularly vulnerable because there may be no one to quickly report or respond to a fire.
Water Damage from Burst Pipes or Leaks
Unoccupied homes may suffer from undetected water damage. Vacant home insurance covers repairs from incidents like burst pipes or leaks.
Weather-Related Damage
Damage from windstorms, hail and other weather events is typically covered, providing peace of mind that your property is protected against natural disasters.
Liability Issues
If someone is injured on your property while it is vacant, this insurance can cover legal and medical expenses.
While vacant homeowners insurance provides extensive coverage for unoccupied properties, it excludes routine maintenance issues and intentional damage. Knowing these limitations is crucial to avoid surprises when filing a claim. Generally, vacant homeowners insurance does not cover:
Routine Maintenance Issues
Damage resulting from neglect or failure to perform regular maintenance is not covered. For instance, if a roof deteriorates due to lack of upkeep, the damage would not be eligible for a claim.
Intentional Damage by the Homeowner
Any damage intentionally caused by the homeowner is excluded from coverage.
Flood Damage
Damage from flooding is not covered under vacant homeowners insurance unless you have a separate flood insurance policy.
Earthquake Damage
Like flood damage, earthquake damage requires a separate policy and is not covered under typical vacant homeowners insurance.
Wear and Tear
Normal wear and tear or gradual deterioration over time is not covered.
A home is considered vacant when it's unoccupied for an extended period, typically defined as 30 to 60 days, depending on the insurer. Here are the main criteria that determine if a home is considered vacant:
Understanding these indicators is crucial for determining when a home is classified as vacant and ensuring it has the appropriate insurance coverage.
Having liability insurance for vacant land is crucial to protect against potential accidents or injuries occurring on the property. While you do not legally require homeowners insurance for a vacant home, it still needs adequate protection.
Having vacant home insurance can ensure your property is protected against:
Ensuring your property has the necessary insurance coverage, such as liability insurance for vacant land or vacant home insurance, is essential for protecting against various risks and liabilities.
Vacant home insurance and standard homeowners insurance differ primarily in the scope of coverage and the risks they address. These differences are essential to understand to ensure your property is adequately protected based on its occupancy status. Take a look at the table below to understand the key differences:
Feature | Vacant Home Insurance | Homeowners Insurance |
|---|---|---|
Coverage Period | Long-term unoccupied homes | Regularly occupied homes |
Risks Covered | Vandalism, theft and undetected damage | Fire, theft and weather-related damage |
Liability | Higher risk due to lack of occupancy | Standard liability for occupied properties |
Purchasing vacant homeowners insurance involves a few key steps to ensure you get the right coverage. With careful planning and consideration, you can secure the right policy to safeguard your investment. Here’s a detailed guide to help you through the process:
Determine how long the property will be vacant and what specific risks you need coverage for. Consider the property's location, condition and any previous damage.
Look for insurance companies that specialize in vacant home insurance. Some insurers may offer policies specifically tailored to vacant properties, providing more comprehensive coverage options.
Evaluate the coverage options, exclusions and costs of different policies. Pay attention to what is included and what is not covered.
Request home insurance quotes from multiple insurers to compare prices. Be sure to provide accurate information about the property to get an accurate quote.
Carefully read the policy terms to understand coverage limits, deductibles and any conditions. Ensure you are clear on what is required to maintain the coverage.
Choose the best policy for your needs and purchase it, ensuring you maintain documentation for future reference. Keep a copy of the policy documents and contact information for your insurer handy.
Even with vacant home insurance, it's important to perform regular inspections and maintenance to minimize risks and ensure compliance with the policy terms.
Understanding vacant homeowners insurance can be complex, especially with the various coverage options and limitations. To help clarify common concerns, we've compiled answers to frequently asked questions about vacant homeowners insurance.
Standard homeowners insurance typically does not cover unoccupied homes. This is where vacant home insurance comes in.
Depending on the insurance policy, a house can usually be unoccupied for 30 to 60 days before it is considered vacant.
In an insurance policy, "vacant" refers to a property that has been unoccupied and lacks personal belongings or utilities for an extended period, typically 30 to 60 days.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
