Vacant Home Insurance Policy – What Is It and Do I Need One?



You have paid for homeowner’s insurance and left for an extended trip. You asked one of your relatives to check up on your house once in a while just to make sure that everything is in order. Not knowing that one day, someone has broken into your house. Your relative comes to your house several days later to check and discovered that the back door is already open. All of your belongings were cleared out by the thieves and some parts of your house were destroyed.

You filed a claim to your homeowner’s insurance provider. However, to your surprise, you found out that your insurance company won’t accept the claim since you’ve been away from your home for more than 30 days and you were told by your provider then that you needed to have an unoccupied property insurance coverage.

Unfortunately, the circumstance stated happens way too often. Homeowners will be gone for a period of time without vacant home insurance, not knowing that their homeowner’s insurance takes effect only while they are living in their house. And so, as a result, the insurance company reduces the amount of claim they will recover since they haven’t changed their insurance while they were gone. The company can also reject the claim altogether.

Homeowner’s insurance is very important for your financial protection. But if you feel like going on an extended trip and leave your home (and property) unoccupied for an extended time, do you know that you could drop your home insurance coverage? If you have just left your home unoccupied for 30 days, your homeowner’s insurance may no longer have any effect. You would be devastated to find out that your home is burglarized and your insurance policy won’t do something about it.

Unoccupied property insurance includes coverage for your entire home and even other permanent structures on your property like garage or sheds. There are several reasons why unoccupied property insurance may be needed. Extended travel or leaving the house unattended for quite a long time is one example. You will be paying a fee to carry over your full homeowner’s insurance if you will be gone for more than your insurance provider’s set limit for unoccupied property.

A home that is unoccupied for a period of time because of undergoing renovations is also viable for unoccupied or vacant home insurance policy.  Or, perhaps the principal owner of the property is now deceased and it is to be sold, in which case, you may be required to switch your coverage from homeowner’s insurance to vacant property insurance.

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One Response to Vacant Home Insurance Policy – What Is It and Do I Need One?

  1. Terry says:

    Good informative article. These are the ‘small print’ loopholes and insurance companies rely on to get out of having to make payouts.

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