What Is Unoccupied and Vacant Home Insurance, and Do I Need It?

If you leave your house unattended for weeks at a period, your homeowner's insurance policy is unlikely to cover you in the event of a claim during that time. As a result, any resulting damages or losses would have to be covered out of pocket.

Unoccupied and vacant home insurance solutions provide coverage for claims that might otherwise go unpaid by your homeowner's insurance carrier during these times.

What is the difference between unoccupied and vacant home insurance?

Unoccupied and vacant home insurance are specialized insurance policies designed to cover a home that has been left unoccupied from harm or loss.

On an unoccupied or vacant property, standard homeowners insurance plans will not cover fire, vandalism, liability, or other types of claims. For instance, if you leave your home for a few months and a fire occurs, unoccupied and vacant home insurance would cover you where your typical homeowner's policy would not.

This form of insurance is available as a standalone policy or as an endorsement. You won't need to pay for basic homeowners coverage if you buy it as a separate policy. If you buy it as an endorsement, however, it becomes a supplement to your existing homeowner's policy.

For a variety of reasons, including slower emergency response times and a higher likelihood of a break-in, unoccupied and deserted homes provide a higher insurance risk than occupied residences. For example, if there were fires on the premises of two homes — an occupied home and an empty home — the fire at the former would, in theory, cause less damage because its inhabitants would likely report it first and it would be put out faster.

Because of the heightened insurance risk associated with vacant and unoccupied residences, insurance firms have begun to exclude these properties from normal property insurance plans. As a result, homeowners who want coverage for an empty or unoccupied home must get vacant or unoccupied home insurance.

Do you require insurance for your vacant or uninhabited home?

Uninhabited or vacant house insurance is recommended if you plan to leave your home vacant or unoccupied for longer than 30 days.

While policy terms vary, most insurance providers will deny claims if your home is left unattended for more than 30 days. Before leaving your home unattended for an extended period of time, check with your property insurance company and inquire about how the company defines vacancy and un-occupancy. Your property insurance company may have certain restrictions on how long you can leave your home unattended.

We've compiled a list of frequent instances in which a homeowner may require unoccupied or vacant home insurance

• You own a vacation house that you only go to a couple of times a year.

• You've bought a house but won't be able to move in for a few weeks.

• You're always on the road for weeks at a time.

• You must undergo medical therapy that will keep you in the hospital for several weeks.

• You're remodeling a home but won't be living there while the work is being done.

• You own a rental property and are in the process of locating renters.

Do I have a vacant or unoccupied home?

An uninhabited home is one that is ready to be used as a residence, which means it has furnishings and utilities installed. An unoccupied house, on the other hand, is likely to be devoid of any personal belongings.

Vacant homes, on the other hand, provide a greater risk to insurance companies than unoccupied homes, because unoccupied-home claims are more likely to be reported sooner than vacant-home claims. As a result, any damage that may occur, such as a water backup in the property, is likely to be less severe in the vacant home, resulting in cheaper insurance costs.

The status of your home, whether inhabited or vacant, will have a significant impact on your insurance costs.

Purchasing insurance for a vacant or uninhabited home

Unoccupied and vacant home insurance is most usually available through the homeowner's current home insurance provider. Some large national insurance firms, such as State Farm and Farmers, offer endorsements or different policies to protect these types of properties.

Expect to spend about 50% more for unoccupied or vacant home insurance than you would for a typical homeowners policy. Unoccupied and vacant house insurance will cost most homeowners roughly $500 extra per year, raising their average yearly cost of homeowners insurance.

The best insurance providers for vacant and unoccupied homes

As previously stated, many property insurance firms allow policyholders to add empty or vacant home insurance as endorsements to their existing homeowner's policies. Furthermore, some businesses offer clients to purchase separate insurance. We've highlighted some of the best unoccupied and vacant home insurance companies below.

How to Save Money on Vacant and Unoccupied Home Insurance

While unoccupied and vacant home insurance is costly, there are certain cost-cutting measures you can take. For example, if you have a neighbor or acquaintance who agrees to check on your property every few days, your insurance provider may agree that your home is not empty or vacant.

Installing security measures, such as an alarm system, may also qualify you for a discount. However, because these judgments are frequently made on a case-by-case basis, there is no clear guideline. Regardless, it's worth talking to your insurance carrier about such discounts, as they might save you hundreds of dollars per year on property insurance.