Whether you have a vacation home, an empty rental home, or simply one that has sat vacant for some time, you may have thought, “Do I need any special kind of home insurance when my house is vacant?” 

In this post, you’ll learn: 

• The difference between vacant and unoccupied properties 
• The difference between vacant home insurance and traditional home insurance 
• If you need vacant home insurance 

Vacant vs. Unoccupied Properties

In insurance, there’s a difference between a vacant and an unoccupied house, and the difference is vital when it comes to your home insurance policy. 

What are vacant properties? 

Vacant means the house is completely empty, void of occupants and any substantial contents. For example, if you move everything out of your existing home into a new property, your old home would be considered vacant (even if you intend to sell it).  

Insurance companies see a vacant house as a higher risk since there are no occupants to report incidents or damage. Vacant homes are also an easy target for vandalism and theft of building materials such as copper. That is why there are exclusions in your homeowners policy for claims on a house left vacant for more than a month or two, depending on your policy terms. 

What are unoccupied properties? 

Unoccupied properties are those left furnished though without occupants. Examples of unoccupied properties include a summer house, your regular home while you’re on an extended vacation, or a college student’s house left empty during summer break.  

In the case of unoccupied properties, your standard home insurance coverage will likely remain in force and cover claims. That said, it’s always a good practice to talk to your insurance agent to ensure you’re covered with your unique policy. There are time limits on how long a dwelling can remain unoccupied before coverage no longer applies, and those could be as short as a month, so know your policy’s restrictions and plan visits to or caretaking of your property as needed. 

If you own a home you rent to others, you need to talk to your insurance agent about unoccupied versus vacant home coverage under your landlord policy. 

Vacant Home Insurance vs. Traditional Home Insurance

If you have (or plan to have) a vacant home, you can secure insurance protection for the property. A special type of coverage, vacant home insurance, is just what homeowners need in this situation. 

Vacant home insurance can be purchased as a stand-alone policy or may be added as an endorsement to the house’s standing insurance coverage. It will insure the property for most of the same perils that were covered in the original homeowners policy (except contents), but the terms of coverage may include proof that maintenance was performed and reasonable steps were taken to prevent damage. 

Do you need vacant home insurance? 

Here are a few scenarios when you might need vacant home insurance: 

• Inheriting a home that will be empty for an extended period 

• Purchasing a home but won’t be moving in within 30 days 

• Moving out for more than a month while your home is remodeled 

• Being away on travel for months at a time 

Though you have a window of time before vacant home insurance is necessary, it’s important to read the vacancy clause in the applicable homeowners insurance policy. Better yet, get in touch with your insurance agent and ask for clarification.  

It’s important to note that any claims made on your vacant property after the 30- or 60-day window (depending on your policy), will be denied by most insurance companies.  

Where can you get vacant home coverage? 

An IOA insurance agent who offers homeowners insurance is the right person to advise you on vacant home insurance and to help you understand what your current policy covers in terms of occupancy requirements.  

For help finding the best homeowners insurance coverage for you, request a quote here.