Unoccupied and Vacant Home Insurance: What Is It and Do I Need It?

If you leave your home unattended for weeks at a time, your homeowners insurance policy is unlikely to cover you in the event of a claim while it is unoccupied or vacant. As a result, any resulting damages or losses would have to be paid for out of pocket.

Unoccupied and vacant home insurance products provide coverage for claims that would otherwise go unpaid by your home insurance company during these times.

What is unoccupied and vacant home insurance?

Unoccupied and vacant home insurance are specialty insurance products designed to provide financial protection against damage or loss to an unoccupied home.

Fire, vandalism, liability, and other types of claims on an unoccupied or vacant property are not covered by standard homeowners insurance policies. For example, if you leave your home for a few months and there is a fire, unoccupied and vacant home insurance will cover you in places where your standard homeowners policy will not.

This type of insurance can be purchased as a standalone policy or as an endorsement to an existing policy. You will no longer need to pay for a standard homeowners policy if you purchase it as a separate policy. If purchased as an endorsement, it acts as an addition to your existing homeowners policy.

Unoccupied and vacant homes pose a higher insurance risk than occupied homes for a variety of reasons, including slower emergency response times and a higher likelihood of a break-in. For example, if there were fires on the premises of two homes — an occupied home and a vacant home — the fire at the former would, in theory, cause less damage because it would be reported first by its inhabitants and put out more quickly.

Because of the increased insurance risk associated with unoccupied and vacant homes, insurance companies have excluded these properties from standard property insurance policies. As a result, homeowners who want coverage for an unoccupied or empty home must purchase unoccupied or vacant home insurance.

Do you need unoccupied or vacant home insurance?

In general, if you intend to leave your home vacant or unoccupied for more than 30 days, you should purchase unoccupied or vacant house insurance.

While policy terms vary, most insurance companies will deny claims if your home is left alone for more than 30 days. Before leaving your home unattended for an extended period of time, speak with your insurer and inquire about how the company defines vacancy and unoccupancy, as your property insurance company may have specific restrictions on the amount of time you can leave your home unattended.

Below is a list of common scenarios in which a homeowner may require unoccupied or vacant home insurance:

• You own a vacation home that you visit only a few times a year.
• You've bought a house, but you won't be able to move in for several weeks.
• You're constantly on the road for weeks at a time.
• You must undergo medical treatment, which will keep you in the hospital for several weeks.
• You're remodeling a house and won't be able to live there while the work is being done.
• You are renting out a house and are in the process of finding tenants.

Do I have an unoccupied or vacant house?

An unoccupied home is one that is ready to be used as a residence, which means it has furniture and utilities installed. A vacant house, on the other hand, usually does not contain any personal property.

However, insurance companies see vacant homes as a higher risk than unoccupied homes because unoccupied-home claims are more likely to be reported sooner than vacant-home claims. As a result, any potential damages, such as a water backup in the home, are likely to be less severe in the unoccupied home, resulting in a lower cost to the insurance company.

Your insurance rates will be heavily influenced by whether your home is vacant or unoccupied.

Purchasing unoccupied and vacant home insurance

Homeowners who want to purchase unoccupied and vacant home insurance will most likely be able to do so through their current home insurance provider. Some large national insurers, such as State Farm and Farmers, provide coverage for these types of homes through endorsements or separate policies.

You should expect to pay approximately 50% more for unoccupied or vacant home insurance than you would for a standard homeowners policy. Most homeowners should expect to pay about $500 more per year for unoccupied and vacant house insurance, which will raise their average annual homeowners insurance cost.

Best companies for unoccupied and vacant home insurance

As previously stated, many property insurance companies allow policyholders to add unoccupied or vacant home insurance as endorsements to their existing homeowners policies. Furthermore, some companies allow customers to purchase a separate policy entirely. We've highlighted some of the best insurance companies for unoccupied and vacant home insurance in the list below.

Farmers Insurance

Farmers offer some of the most adaptable unoccupied and vacant house insurance policies available. For example, if you need to cancel a vacant house insurance policy for any reason, Farmers will reimburse you for the time you did not use the coverage. This is a fantastic feature for homeowners who are looking to sell their home.

State Farm Insurance

State Farm makes it simple for homeowners to obtain coverage for their vacant home by providing an endorsement that can be added to an existing policy. As an added bonus, the endorsement covers vandalism and glass breakage. The endorsement from State Farm is good for six months of coverage.

How to save on unoccupied and vacant home insurance

While unoccupied and vacant home insurance is costly, there are some strategies you can use to save money. For example, if you have a neighbor or friend who agrees to check on your property every few days, your insurance company may agree that your home is not unoccupied or vacant.

Installing security measures, such as an alarm system, may also qualify you for a discount. However, these decisions are frequently made on a case-by-case basis, which means that there is no set rule. Regardless, discount opportunities are worth discussing with your insurance company because they could save you hundreds of dollars on property insurance each year.