Vacant home insurance

What is vacant or empty home insurance?

Vacant home insurance – sometimes known as empty home insurance –covers a home that is empty, meaning the occupants have moved out.

"Many insurance policies have language that may limit coverage if a home is vacant," says Cate Paolino, director of public policy at the National Association of Mutual Insurance Companies.

Paolino notes that not all home policies are the same. They are worded differently and differ in terms of coverage, terms, conditions and limits. "These differences have meaning," she says.

Vacant property insurance is typically needed if a home will be empty for a certain period of time, usually 60 days, but in some cases, 30 days.

“While 30 days is often mentioned, it will be important to refer to your insurance policy and to speak with your agent or insurer to determine the exact length of time,” Paolino says.

An empty home can be harder to insure because no one is there to notice issues like a burst pipe, and the home is at a higher risk of a break-in.

“Homes that are unoccupied or vacant often pose a higher risk because a problem -- like a burst water pipe or a break-in -- may go unnoticed,” Paolino says.

It’s important to note that the words “vacant” and “unoccupied” aren’t synonymous.

“Insurers may sometimes define or describe in their policies the difference between a vacant home and an unoccupied home,” Paolino says.

She says that if no one is in the home, but the contents or personal property remain inside -- such as when you are traveling -- the home might be considered “unoccupied.”

However, if no one is living in the home -- and it lacks a typical amount of personal property inside -- the home might be considered “vacant.”

"It may not need to be totally devoid of personal property to be considered vacant,” Paolino says. “Again, it’s important to check your actual policy wording.

Vacant vs. unoccupied home insurance

Why is vacant home coverage different from standard home insurance?

Vacant home insurance differs because the risks are different. Without an occupant to keep an eye on things, damage that could have been caught immediately, like a leaky pipe, has time to become much more severe.

The lack of any signs of occupancy makes a vacant home an easy target for vandals and thieves; they know they’re unlikely to be caught.

Finally, a vacant home with little personal property doesn’t need the same level of personal property coverage as a lived-in home.

What does vacant home insurance cover?

A vacant home insurance policy typically protects you from many perils you would expect any homeowners policy to cover, such as:

• Fire
• Wind
• Explosions
• Lightning
• Hail

However, some other perils may be excluded, most commonly theft and vandalism. Liability is usually not a part of the policy.

You might be able to add these coverages, but it depends on the insurance company and the type of policy.

How much is vacant home insurance?

Like any insurance policy, what you will pay depends on a lot of factors, including location and the size of the home. However, the average cost of vacant home insurance will be higher than a standard policy.

Although some estimates suggest you’ll pay two to three times as much for vacant home insurance, the only way to get a solid number is to get a quote.

How to buy vacant home insurance

The process for buying a vacant home insurance policy is the same as buying a standard home insurance policy.

The first place to start is with your current insurer. You may be able to add an endorsement to your current policy to protect the home while it’s vacant.

If not, or even if you can and want to compare costs (and you should), you can request vacant home insurance quote from other insurance companies. Compare each for coverage and price, and don’t forget to check the company’s reputation.

Once you’ve made your choice, it’s a matter of submitting an application and paying your premium.

Best vacant home insurance companies

Most insurance companies will offer vacant home insurance, and which is the best for you depends on a lot of factors.

Here are a few companies that offer homeowners insurance for vacant homes. Some are specialty insurers, and others are big names.

• American Modern
• Farmers
• Foremost
• American Family
• State Farm

When do you need vacant home insurance?

There are various reasons a property might be empty, and each scenario may have a different insurance solution. Take a look at some common scenarios to see if the home is considered vacant or unoccupied and what coverage you might need.

Insurance options for vacant or unoccupied property

Make sure you speak with your insurance company in any of these scenarios. Whether you are insuring an unoccupied home or a vacant one, it’s best to find out how your current insurer views each situation.

What to do when leaving a house unoccupied or vacant

If you are moving out of your home or will be away for an extended period of time, make sure that your property is protected.

• Maintain the exterior of your home. Make sure the lawn and garden are cared for, as an overgrown yard is a sign of vacancy.
• Install security equipment. Cameras, motion-sensing lights and an alarm can all make your home a less tempting target.
• Take the valuables with you. Don’t leave anything of value in the home if you’re going to be away for a long time.
• Ask someone to check on things. Have a friend or neighbor stop by regularly to bring in mail and check for signs of problems.

Helpful home insurance tools and calculators

• Home insurance calculator
• Condo insurance calculator
• Renters insurance calculator
• When to file a home insurance claim