Do You Need Vacant Home Insurance?

Homeowner’s insurance is so important for your financial protection.  But did you know that if your home or property is unoccupied for an extended time that you could lose your insurance coverage, or that your coverage may automatically be changed?  Even if your home is unoccupied for as little as even 30 days, your homeowner’s insurance may no longer be effective.  You would hate to find out after the fact that a theft or damage to your property is not covered because your home had been unoccupied for a certain length of time and your full coverage was no longer in effect. 

Insurance companies view vacant property as being at higher risk for damage than occupied property.  For this reason it is insured differently and companies will automatically shift coverage to this alternative after a set number of days of vacancy.  That number of days varies with each company. 

This altered coverage is basically changing primarily to liability insurance with far less coverage on the structure itself.  Also, if the property is going to remain unoccupied, vacant property policies are for shorter time durations, like from 3 to 12 months. 

There are a number of reasons why vacant property insurance may be necessary.  Extended travel is one example.  If you are going to be gone for a period longer than your insurance providers set limit for unoccupied property, you may have to pay a fee to carry over your full homeowner’s insurance for that period. 

Another example is if your home becomes uninhabitable for a period of time.  Perhaps it is undergoing renovations or repairs.   You may be required to switch your coverage to vacant property insurance.  Or, perhaps the property in question had an owner who is now deceased and it has gone into estate and is to be sold. 

As with other insurances, there are ways to help keep the cost of vacant property insurance lower.  One of the best ways is to make sure the property is as secure as possible.  Some insurance companies refuse to provide vacant property insurance unless the home is equipped with an alarm system.  This is the best way to get a reduction in your rates (and in some cases to even getting the insurance in the first place).

If you have been with this company for some times, be sure to ask about any available loyal customer discounts.  The fact that you have been a faithful, paying customer over time is often recognized by insurance companies by offering discounts.  There may be no place a discount is more needed than in getting vacant property coverage. 

Raising the deductible is also a possible means of saving on the monthly premium.  Just remember, a higher deductible means higher out of pocket expense if a claim has to be made.