What Is Vacant Home Insurance?

Do you think a vacant house has to be one of those creepy, abandoned, run-down homes all the neighbors say are haunted? Vacant homes come in all shapes, sizes and ages.

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If your home sits empty for any number of reasons, your regular homeowners insurance might not cover it. Find out if vacant home insurance is the right solution. 

Vacant property insurance extends coverage to a house that's currently unoccupied. Even though your belongings might not be in the home, you still need coverage for the structure. Unoccupied home insurance provides the coverage you need if you're the owner of a vacant home. It's available as a stand-alone insurance policy, or you may be able to add an endorsement to your current homeowners insurance to get vacant home coverage.

If you previously lived in the home and have a homeowners policy on it, the fine print might include a vacancy clause. That means your insurer won't pay for losses if the home was vacant when they happened. A vacant home comes with a higher risk because there isn't someone there all the time to prevent certain issues, and it could be a bigger target for vandalism and theft. You're also not there to perform regular maintenance or notice problems such as leaks right away. 

What Qualifies as a Vacant Home for This Type of Insurance?

Before you decide if you need vacant or unoccupied house insurance, it helps to know what qualifies as a vacant house. “Vacant” typically means no one currently lives in the home, and it doesn't contain any furniture or belongings. Unoccupied typically describes a home with furniture and belongings, although nobody is currently staying there. 

You could encounter this issue in a variety of situations. Common examples include:

• Moving out of a home while you're selling it
• Vacation rentals that aren't rented during the off-season
• Personal vacation homes that are only used occasionally
• Rental properties that sit vacant between tenants
• A property you inherited that no one lives in
• Extensive renovations that require you to move out
• Flipping a house

Insurance companies typically specify the length of time the home has to be vacant to qualify. For example, your homeowners policy might not cover losses if your home sits vacant for 30 days, 60 days or longer. 

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• What’s the Difference Between Homeowners and Renters Insurance?

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What Does Vacant Home Insurance Cover?

Like regular homeowners insurance, vacant home insurance may vary in coverage types and amounts. It's always important to review the specific items your policy covers, along with the maximum amount it covers, before starting the coverage. Your policy should list everything it covers, and it might also list specific exclusions it won't cover. In general, vacant property insurance protects against the following losses:

• Fire
• Vandalism
• Lightning
• Wind
• Hail
• Explosions
• Smoke

If you experience one of the covered losses, the insurance company will pay for the damage to your home and attached structures up to the limits of the policy. However, it won't cover damage to the land or any belongings inside the home. 

How Do You Get Vacant Property Insurance?

Check your homeowners policy to see if you have a vacant home clause, which you likely do. Find out how long the home can sit vacant and still have coverage through the policy. 

If you know your home will be vacant for longer than the time specified in your policy, ask if you can add an endorsement for vacant home insurance. Your insurance provider might offer you a separate policy if it can't add the coverage. 

You can also shop around with several insurance carriers to get quotes for empty house insurance. The premium amounts depend on the home's age, condition and replacement value. Insurers might also consider why the home is vacant and how you're using it. When comparing quotes, look at the premium amounts and the coverage limits to get a true comparison.