Vacant Building and Unoccupied Home Insurance: What Homeowners Need To Know
As a homeowner, it’s important to consider potential situations that can leave your home at risk. The more vulnerable your home is, the riskier you’re considered to insure, and therefore the higher your rates will be for your home insurance policy. If your home is left unoccupied, it will be exposed to a variety of dangerous situations, like break-ins or damage from an uncontrolled leak or fire. If these scenarios occur while your home is left vacant, your homeowners insurance policy is unlikely to cover the damage. However, you can consider vacant building or unoccupied homeowners insurance coverage to mitigate some of this risk. Let’s walk through what you need to know about this type of home insurance.
What is vacant home insurance?
Vacant home insurance is a specialized type of coverage designed to protect homes that are unoccupied for an extended period, typically 30 days or more. Unlike a standard homeowners policy, which assumes the home is being lived in and maintained, vacant home insurance provides protection against risks that become more likely when a house is empty, such as vandalism, theft, fire, and water damage from unnoticed leaks. Whether you're selling a property, undergoing major renovations, or temporarily relocating, vacant home insurance can help safeguard your investment during the time it's not in regular use.
The Difference Between Vacant and Unoccupied
Though often used interchangeably, “vacant” and “unoccupied” have different meanings in the insurance world, and the distinction matters. A home is considered vacant when it’s entirely empty, meaning there are no personal belongings or furniture, and no one is living there. In contrast, a home is unoccupied if it's furnished and ready to be lived in, but no one is currently staying there.
For example, a vacation home might be unoccupied between visits, while a house for sale that’s been cleared out is likely considered vacant. Insurance providers use this distinction to determine your coverage needs and may offer different policies or rates based on the status.
Why Standard Homeowners Insurance May Not Apply
Most standard homeowners insurance policies contain exclusions or limitations for homes left vacant beyond a set period, typically 30 to 60 days. When a property is vacant, the risk of damage increases due to the lack of oversight and maintenance. Because of this, insurers may deny claims related to theft, vandalism, or fire if the home was vacant without proper coverage. That’s why it’s essential to inform your insurer and consider vacant home insurance to avoid any surprises in the event of a loss.
What Vacant Home Insurance Covers
Vacant home insurance provides essential protection tailored to the unique risks associated with an empty property. When a home is left vacant for an extended period, it becomes more vulnerable to certain perils. Vacant home insurance helps fill the coverage gap left by standard homeowners policies in these situations.
Most vacant home insurance policies cover:
Vandalism and Theft: Vacant homes can be a target for break-ins and vandalism. This coverage helps pay for repairs or stolen property.
Fire and Smoke Damage: Fires can go unnoticed in a vacant home, causing more destruction. This insurance helps cover repair or rebuild costs.
Water Damage: Some policies offer limited coverage for water damage caused by burst pipes or leaks, especially during colder months.
Liability Protection: If someone is injured on your vacant property, liability coverage can help protect you from potential legal or medical expenses.
Wind and Hail: Weather-related events like windstorms or hail can damage the roof, windows, or structure. This is often included in coverage.
Coverage can be customized depending on your insurer and the risks specific to your property or location.
What It Might Not Cover
Vacant home insurance is valuable, but it doesn’t cover everything. Common exclusions may include:
Wear and Tear: Normal aging or gradual deterioration of the home is not covered.
Neglect or Poor Maintenance: Issues that arise due to a lack of upkeep—like mold or pest infestations—are typically excluded.
Flooding and Earthquakes: These natural disasters often require separate policies.
Intentional Damage: Damage caused by the homeowner or someone acting on their behalf is not covered.
Always read the policy carefully and speak with your insurance provider to understand the specific inclusions, exclusions, and any additional endorsements you may need.
Scenarios When You Might Need Vacant Home Insurance
Not sure if you need vacant home insurance? Here are some common scenarios where this specialized coverage is essential:
You’re Selling a Home: If you’ve already moved out but your house is still on the market, it’s considered vacant. Traditional homeowners insurance may not cover damages during this time.
You’re Renovating: Major home renovations that require you to move out, especially if utilities are shut off, can leave the home unoccupied and at higher risk for theft, vandalism, or fire.
You Inherited a Property: If you've inherited a home that isn’t occupied right away, it may be classified as vacant and in need of special protection.
You Own a Rental Between Tenants: If your rental property is temporarily empty between tenants for 30 days or more, it’s considered vacant and may not be covered by a landlord policy. However, if you have a rental property, you may need to consider other coverages, such as vandalism or burglary coverage, to add to your rental property insurance. You can also consider a lessor’s risk only (LRO) policy, also known as landlords insurance.
You’re Relocating for Work: If you're moving for a temporary assignment or working out of state and your home will be empty, standard coverage may lapse.
In each of these cases, vacant home insurance helps ensure your property is protected from the unique risks that come with being left unattended—giving you peace of mind until it’s occupied again.
How to Buy Homeowners Insurance For a Vacant Home
Whether you have a rental property or a vacation home, your vacation home insurance coverage will be different from your normal home insurance coverage. However, you can likely purchase home insurance for either your vacation or vacant property through your current home insurance carrier. Some carriers offer coverage for vacant homes through endorsements or separate policies, and while you can find coverage through the same carrier as your primary home insurance policy, you may expect to pay higher premiums.
How to Buy Homeowners Insurance For a Vacant Building
As you shop and compare homeowners insurance for a vacant building, you’ll want to tell your agent that your building is unoccupied. That way, they can make sure you get the proper coverage. Vacant building insurance coverage can help protect your property from water damage, theft, and vandalism, even if your building has been vacant for more than 60 days. You may also be able to add a vacancy permit endorsement to an existing policy.
SelectQuote Can Help You Save on Vacant Home and Property Insurance Costs
Having the right home insurance coverage for your vacant home or property will give you peace of mind. At SelectQuote, we have over 40 years of industry experience to answer any question you have about homeowners insurance. In just minutes, we search a variety of trusted carriers to compare plan prices and details, doing the shopping on your behalf while you do the saving.
