At certain points, anyone may need to insure a vacant home. The reasons for this vary and may include certain life events such as inheriting a relative’s home or moving out of your own home before it has sold. Liability coverage is also important on a vacant home in case there is an accident that causes injury or property damage.
When is vacant homeowners insurance needed?
A vacant home policy is typically needed when a residence is expected to be empty or unoccupied for over 60 days, or perhaps longer.
What does “vacant” mean?
- An unoccupied residential or commercial property that is not lived in, worked in or put to use for any other purpose
- An unoccupied residential or commercial property that is not undergoing remodeling. If the property is undergoing repairs or remodeling it must be unoccupied except for the owner or a building trade temporarily occupying it for the sole purpose of repairing or renovating it.
What are the policy terms?
The standard term is 12 months. However, there are also six month terms available as well. It is important that the property is in good condition, secured, and checked on regularly. If a property is vacant for longer than one term, it may require an underwriting review.
Why is the cost to insure a vacant home typically higher than a standard homeowner’s policy?
Vacant homes have unique insurance coverage needs as they can present additional loss exposures that are not prevalent in a standard homeowner’s policy. When a house is occupied, problems are easy to spot and can be quickly mitigated. A broken pipe or a vandalism loss in a vacant home could go unnoticed for a longer amount of time and therefore may be more costly to address.
Builders Risk Insurance
If you are insuring a home under construction, builders risk coverage is needed. In general, a builders risk policy protects against damages to buildings while they are under construction.
Need additional information
The Andrew Agency would be happy to answer any questions you have about insuring a vacant home. We work with companies that specialize in insuring vacant homes, and we can help you find the right coverage for your specific needs. Call us today at 804-320-2886.
