Insuring a vacant home requires special attention, as standard homeowners insurance policies typically don’t cover vacant or unoccupied homes for extended periods. Insuring a vacant home is essential to protect it from risks like theft, vandalism, fire, and weather damage. Here’s what you need to know about insuring a vacant home:

1. Why Vacant Homes Are Considered Riskier

Insurance companies consider vacant homes to be at a higher risk for several reasons:

• Increased Vulnerability to Theft and Vandalism: Unoccupied homes are more likely to attract thieves or vandals.
• Delayed Maintenance: A vacant home may go without necessary repairs or maintenance, leading to issues like water damage, mold, or broken pipes.
• Fires and Hazards: Without regular occupancy, potential fire hazards may go unnoticed, such as faulty wiring, gas leaks, or neglected appliances.
• Weather Damage: Without someone there to address issues like leaks or storm damage quickly, vacant homes can sustain extensive damage over time.

2. Standard Homeowners Insurance May Not Cover Vacant Homes

Most standard homeowners insurance policies will not cover homes that are vacant for extended periods, typically 30 to 60 days. If your home is vacant longer than this, the policy may be voided or may offer limited coverage. For example:

• Theft and Vandalism: Theft and vandalism may not be covered if the home has been vacant for more than a specific number of days.
• Certain Types of Damage: Damage from certain perils, like fire or weather-related incidents, may not be covered if the home is vacant.

If you’re leaving your home vacant for a while, you’ll need to adjust your coverage accordingly to ensure that you’re still protected.

3. Types of Insurance for Vacant Homes

When you need to insure a vacant home, you have a few options depending on the circumstances and how long the home will remain unoccupied:

A. Vacant Home Insurance

Vacant home insurance is a specialized policy designed specifically for homes that are unoccupied for an extended period. This coverage offers protection for risks like fire, vandalism, weather-related damage, and theft while the property is vacant.

• Coverage Options: A vacant home insurance policy typically covers the property itself, personal belongings (if left behind), liability, and damage from natural disasters.
• Premiums: These policies often come with higher premiums compared to standard homeowners insurance due to the increased risk of insuring an empty property.

When to Use It: If you’re in the process of selling the home, renovating it, or if it’s unoccupied due to relocation, this is the policy you would likely need.

B. Dwelling Fire Insurance

In some cases, especially for properties that are temporarily vacant (such as rental properties between tenants), you may be able to get dwelling fire insurance. This is a limited form of insurance that covers fire, vandalism, and certain other types of damage to a vacant home.

• Limited Coverage: It doesn’t provide the same level of protection as a full homeowners policy, but it does offer a lower-cost option to cover the most common risks to vacant homes.

When to Use It: If your home is vacant for a short period (typically between 30 and 90 days) and you want basic coverage to protect it against common risks like fire or vandalism.

C. Landlord Insurance (for Rental Properties)

If your vacant home will be rented out soon or is part of a rental property portfolio, landlord insurance may be an appropriate option. This covers risks associated with renting, including liability, property damage, and lost rental income.

• Landlord Insurance can also be adapted to cover a property that’s vacant between tenants, although it may not offer as much protection as a dedicated vacant home insurance policy.

When to Use It: If you plan to rent out the vacant home in the future but need to insure it during the vacancy period, landlord insurance may offer protection.

4. Factors That Affect Vacant Home Insurance Premiums

The cost of vacant home insurance can be higher than standard homeowners insurance because insurers consider vacant homes to be a higher risk. Here are a few factors that can affect the premium:

• Length of Vacancy: The longer a home is vacant, the higher the premium may be. Insurers may see a longer vacancy as an increased risk for damage or other issues.
• Location: Homes located in areas with high crime rates or extreme weather conditions may have higher premiums.
• Age and Condition of the Home: Older homes or homes in poor condition may cost more to insure because they are more likely to have problems like plumbing or electrical issues.
• Security Features: Homes with added security measures, such as security cameras, alarms, and proper lighting, are often viewed as lower risk, potentially leading to lower premiums.
• Claims History: If the property has had a history of frequent claims, the insurance premium might be higher.

5. How to Prepare a Vacant Home for Insurance

To minimize risks and lower your insurance premiums, there are a few steps you can take to prepare the vacant home:

• Secure the Property: Install security systems, including cameras, alarms, and outdoor lighting. Make sure doors and windows are locked and secure.
• Perform Regular Maintenance: Check the property periodically to make sure there are no signs of damage (leaks, mold, pests, etc.). Fix any issues that arise promptly.
• Remove Valuable Items: If you’re leaving the home vacant, consider removing personal belongings or valuables that could attract thieves.
• Turn Off Utilities: Consider turning off the water, electricity, and gas to prevent leaks, electrical issues, or potential fires.
• Keep Up with Lawn Care: A well-maintained yard helps prevent your property from looking abandoned, which may deter vandalism and theft.

6. Notify Your Insurance Provider

Once your home becomes vacant, notify your insurance provider immediately. They may offer you a temporary solution to extend your current policy or guide you in purchasing a new, specialized policy. If you fail to inform your insurer, your standard policy may become void, leaving you without coverage.

7. How to Save Money on Vacant Home Insurance

Vacant home insurance premiums can be expensive, but there are a few ways to save:

• Increase Your Deductible: Higher deductibles can lower your premium, but remember that you’ll pay more out-of-pocket in the event of a claim.
• Secure Your Home: Adding security systems or having regular property inspections can lower your premium.
• Shop Around: Different insurance companies offer different rates for vacant homes. It’s important to get multiple quotes to find the best coverage for your situation.

8. What to Do if You Plan to Sell or Rent the Home

If your plan is to sell the vacant home soon or rent it out:

• Selling: If you’re waiting to sell the property, you might consider purchasing vacant home insurance to protect the property during the sale process.
• Renting: If you’re preparing to rent it out, you can either use a landlord insurance policy during the vacancy period or get a vacant property insurance policy until the property is rented.