There are limits on how long a house can remain empty before homeowners insurance coverage ceases to apply. IOA has vacant home insurance that solves this problem if you are stuck. 

If you are one of the thousands of families that have relocated to the Huntsville or Birmingham, Alabama, area or have moved to this great state for its colleges, beauty or rapidly improving elementary education, you may find yourself owning a house that hasn’t sold in your old location. Not only is that a drain on your bank account; it can also pose hidden financial risks, since that property’s homeowners insurance could exclude coverage after just 30 or 60 days of vacancy. 

Homeowners insurance policies typically contain a vacancy exclusion on coverage because empty houses are more prone to:  

• Vandalism and theft of built-in or left-behind elements (copper wiring, refrigerators, etc.) 

• Squatting 

• Fires 

• Other damage that goes unmitigated, such as water intrusion or sewer/drain backups 

A house is considered vacant if there are no occupants for at least 30 consecutive days (though some insurance policies are more lenient on this time period) and if typical interior contents, such as furniture and personal articles, like clothing, are no longer there.  

Ways you can protect your old home while it awaits new occupants

If you are in a situation where you can’t rent or sell your old home but have already moved to Alabama, you may wonder how you can avoid the financial risk posed by the vacancy clause. 

The first and easiest way is to purchase vacant home insurance. It can keep you from financial losses due to: 

• Structural damage caused by fire, explosion, storms, vandalism, and other perils 

• Theft 

• Injury liability 

• Damage to other structures, such as a detached garage 

• Loss of or damage to contents 

Alternatively, you could leave your old home habitable and ask a trusted friend or relative to live there while it is on the market. Just having someone occupy the property—even for part of each week—can prevent the vacancy clause in your homeowners policy from kicking in.  

Renting the home while you await its sale may sound like an option, but be cautious. That requires purchasing a landlord’s insurance policy. A homeowners policy usually doesn’t extend to rented properties. 

How can you purchase vacant home insurance

Vacant home insurance is available as an addition to homeowners insurance coverage or as a stand-alone policy. It depends on your current insurer’s “appetite” (its willingness to insure certain risks).  

Even if your current insurer doesn’t want to add vacant home insurance to your homeowners policy, IOA can help you find coverage. There are numerous insurance companies that sell stand-alone vacant home policies, so we can show you options and let you choose the one you are most comfortable with. We have access to these policies nationwide, including in California and Colorado.  

We can also help you get insurance at your new residence in Alabama or nearby states, whether it’s a rental while you hunt for the perfect fit or a home purchase. We are very familiar with the entire state and the outlying suburbs in Tennessee, so you will get great advice wherever your new journey is starting. Plus, we can secure your home insurance before you go to settlement so everything is smooth sailing when you go to receive the keys. 

Don’t let concerns over a vacant home weigh you down. Turn to an IOA insurance agent for help protecting that investment as well as your new house in the great state of Alabama.