A vacant property faces unique risks that an occupied home does not. While empty, it still represents a significant financial investment that requires protection. Without the right insurance, you could be responsible for costly damages.
Vacant homes present a greater insurance risk due to slower emergency response times and a higher probability of break-ins or vandalism. Because of these increased risks, standard homeowners insurance policies often exclude properties that are unoccupied for an extended period. Homeowners need a specialized vacant home insurance policy to stay protected.
If you own a vacant home or plan to leave a property empty, this insurance is crucial for safeguarding your investment and your peace of mind.
What Is Vacant Home Insurance?
A vacant home is a property that is empty and not in use for a significant amount of time. This does not mean it is abandoned. A home can be vacant because it is for sale, between tenants, used as a seasonal residence, or undergoing renovations.
The definition of “vacant” varies by insurer. Some companies consider a home vacant after 30 days without occupancy, while others may extend this period to 60 days.
Vacant home insurance is a specialized policy or endorsement designed to protect homes that are empty for an extended time. This is different from traditional homeowners insurance, which is based on the owner living in the home.
What Does Vacant Home Insurance Cover?
A vacant home policy covers many of the same perils as a standard homeowners policy, but is tailored for unoccupied properties. Typical coverage includes damage or loss caused by:
- Fire or Lightning
- Windstorm or hail
- Explosion
- Vandalism and malicious mischief
- Damage from an aircraft, car or vehicle
- Theft
- Falling objects
- Weight of ice, snow or sleet
- Water damage
The specific protections and coverage limits depend on your insurance company and the policy you select. Always review the details of any plan carefully because there could be exclusions specific to that policy.
How Much Does Vacant Home Insurance Cost?
Vacant home insurance cost is typically higher than standard home insurance, often averaging 1.5 to 3 times more. This is due to the increased risks associated with empty properties.
The final price depends on your insurer, the policy you choose, and the home’s risk profile. Some companies offer prorated annual plans or shorter-term policies if the vacancy is brief.
Factors That Affect Vacant Home Insurance Costs
Several key factors influence the cost of your premium:
- Length of Vacancy: Shorter vacancy periods generally mean lower premiums.
- Reason for Vacancy: A home under renovation or between tenants often costs less to insure than a property with no immediate occupancy plans.
- Security Systems: Installing burglar alarms and security monitoring can earn you a discount.
- Property Condition: A well-maintained property in good condition typically qualifies for a lower rate.
- Neighborhood: Locations with high crime rates or multiple boarded up properties can lead to higher costs.
- Replacement Cost: Larger, more expensive homes require more coverage, increasing the premium.
- Property Oversight: Regular monitoring by a real estate agent or contractor can reduce risk and lower your cost.
- Multi-policy Discount: Bundling with other policies from the same insurer can result in savings.
How to Buy Vacant Home Insurance
Purchasing vacant home insurance is a straightforward process. Follow these steps to secure the right coverage:
- Shop Around
Start by checking if your current home insurance provider offers a vacant home endorsement or standalone policy. You may qualify for a bundling discount. Also research other providers that offer this specialized coverage in your state, comparing their options and discounts. - Get Quotes
Contact insurance agents to get accurate quotes. Explain your situation so they can recommend appropriate coverage limits and identify any available discounts. Comparing quotes from multiple companies ensures you find the best coverage for your needs at a competitive price. The easiest way to do this is to work with an insurance broker with access to multiple insurance companies. - Set Up Your Policy
Finalize your chosen policy or add the endorsement to your current one. If you are replacing a standard homeowners policy, work with your agent to avoid any lapse in coverage during the transition.
Secure Your Vacant Property Today
Do not leave your investment exposed to risk. The right vacant home insurance policy provides crucial financial protection.
Contact ONYX Insurance Brokers today. Our experts will help you find the right vacant home insurance policy to protect your property, offering you options tailored to your specific needs and budget.
