Most standard homeowners policies do not cover vacant homes. Insurers typically include a “vacancy clause” that voids or limits coverage if your home is empty for specific number of consecutive days.
Owning a home that sits empty can feel a little nerve-racking. Whether you’ve inherited a property or are waiting on a sale, vacant home insurance is designed to insure your dwelling when it’s empty.
At C.T. Lowndes, we compare dozens of carriers to find the right policy for your situation, so you don’t have to guess whether your vacant property is insured. Give is a call to talk about your situation to see if a vacant policy is right for you.
Let’s walk through what vacant home insurance is and when you need it.
What Is Vacant Home Insurance?
Vacant home insurance is a specialized type of insurance coverage designed to cover a house that is sitting empty for an extended period. It steps in where a standard home insurance policy typically stops, since most insurers consider vacant properties a higher risk than occupied ones.
When a home is empty, small problems can quickly turn into big ones. A slow leak from leaky pipes can cause major water intrusion before anyone notices, and an empty house can also attract theft or vandalism.
When Is A Home Considered Vacant?
This is where many homeowners get tripped up. Most policies have a vacancy clause that kicks in once a house has been empty for a certain period, sometimes 30 to 60 consecutive days, sometimes 3 months.
The exact timeline depends on your insurer, but the important thing to know is that “unoccupied” and “vacant” can mean different things. A home is generally considered vacant when there’s no one living there and most of the furniture and personal belongings have been removed.
An unoccupied home, on the other hand, might still be fully furnished but simply not lived in at the moment, like a seasonal property. Both situations may require different insurance coverage, and your insurance agent can help you sort out which applies to you.
Why Standard Home Insurance May Not Cover A Vacant Property
Here’s something a lot of homeowners don’t realize until it’s too late. Your standard home insurance policy may not pay out on claims once the house has been vacant beyond the period defined in the policy.
That means if a fire breaks out, a pipe bursts, or someone breaks in during that time, you could be left covering the costs out of pocket. The increased risk associated with empty properties is the reason insurance companies treat them differently.
This isn’t meant to be discouraging. It’s just a reminder that the right policy for an occupied home isn’t always the right policy for a vacant one.
Who Typically Needs Vacant Home Insurance?
Vacant property insurance isn’t just for one type of homeowner. There are many factors that might leave your house empty for a stretch of time.
You may need vacant home insurance coverage if you’re selling a home that hasn’t closed yet, relocating for work before your family moves, or holding onto an inherited property while you decide what to do next. Investors who purchase homes to flip or rent out also commonly need this kind of coverage.
Major renovations are another common reason. If your house is uninhabitable during construction, your insurer may classify it as vacant, or under construction where a builders risk policy may apply, even if you still plan to move back in.
What Does Vacant Home Insurance Cover?
A vacant home insurance policy covers many of the same risks as a standard home insurance policy, just for an empty structure. Most policies include coverage for fire, vandalism, theft, and certain weather-related events like wind and hail.
Liability coverage is also an important piece. If someone is injured on your vacant property, for instance a contractor or a curious passerby, liability protection can help cover legal and medical costs.
Coverage limits and exactly what your policy covers will vary by carrier, so it’s worth having a conversation with an agent who can walk you through the details. Some policies offer more comprehensive protection, while others are more basic.
How To Qualify For Vacant Home Insurance
To qualify for vacant home insurance, your property usually needs to be in good condition and meet certain safety standards. Insurers want to see that the home is structurally sound and that you’ve taken reasonable steps to protect it.
Common security measures include working locks, boarded or secured windows, functioning smoke detectors, and sometimes a monitored security system. Some insurers may also ask that the property be checked on regularly.
These steps help reduce risk, and they can also help lower your premium. The lower the risk to the insurance company, the more favorable your rate tends to be.
How Much Does Vacant Home Insurance Cost?
Vacant home insurance typically costs more than standard home insurance, sometimes 50% or more. That’s because of the higher risk we mentioned earlier, since vacant homes are statistically more likely to experience claims.
Your premium will depend on the home’s location, age, value, and condition, along with how long it will be vacant. The type of coverage you choose also plays a role, since broader protection naturally costs more than a basic plan.
The good news? Working with an independent insurance agent means you don’t have to shop carrier by carrier on your own.
Why Work With C.T. Lowndes For Your Vacant Home Insurance?
For over 170 years, C.T. Lowndes has helped families and businesses across coastal South Carolina protect what matters most. Vacant property insurance can be tricky to navigate, and we believe you shouldn’t have to figure it out alone.
As an independent agency, we compare dozens of top-rated insurers to find the policy for your situation. Whether you’re selling a home, managing renovations, or holding onto a property during a transition, we’ll walk you through your options.
Reach out today to speak with a local agent who can help you find vacant home insurance coverage that fits your needs and your budget.
People Also Ask these Questions About Vacant Home Insurance
How long can a house be vacant before insurance is affected?
Most home insurance policies allow a house to be empty for 30 to 60 days before the vacancy clause kicks in. After that period, your standard policy may no longer cover losses, which is when a vacant home insurance policy becomes important.
Is vacant home insurance more expensive than regular home insurance?
Yes, the premium for vacant home insurance is generally more than standard coverage. The increased cost reflects the higher risk that comes with insuring an empty structure where problems can go unnoticed.
Does vacant home insurance cover theft and vandalism?
Most vacant home insurance policies do cover theft and vandalism, though the extent of coverage can vary by insurer. It’s a good idea to confirm with your insurance agent exactly what your policy covers before assuming you’re protected.
Can I get vacant home insurance for a property I’m trying to sell?
Absolutely. If your home is on the market and sitting empty, vacant home insurance can protect it during the sale process. This is one of the most common reasons homeowners purchase this type of policy.
What happens if I don’t tell my insurer my home is vacant?
If you don’t notify your insurance company that your home is vacant, you risk having claims denied later on. Most contracts require you to disclose a change in occupancy, so it’s always best to contact your insurer or agent as soon as you know the house will be empty.
