Vacant Property
Insurance

What Does Vacant Property Insurance Cost?

Since certain risks increase with an unoccupied property, vacant property insurance is typically more expensive than a standard homeowner policy. If you’re only adding an addendum to your current policy, it may be more affordable, but just make sure it includes all the coverage you need. Fortunately, most insurance carriers will return any unused premiums if the house becomes occupied before the end of the policy’s time period.

Factors that affect your premium can include:

• Your geographic location.
• The property's value.
• The amount of coverage you purchase.
• Safety of the house or property.

What are Common Vacant Property Claims?

Here are a few of the most common causes of loss to vacant homes and properties, as provided by the Insurance Information Institute (III):

1. Break-ins. When a property is left unoccupied for any length of time, it can attract attention from thieves who can cause property damage and other losses.
2. Vandalism/Arson. Arson, property damage, defacement and vandalism are common among vacant/unoccupied properties.
3. Maintenance/Upkeep. When a property is unoccupied or vacant, there is often no one maintaining the property and no one around to identify abnormalities such as utilities complications, broken or leaky pipes, gas leaks, and other problems that can escalate quickly and without the property owner’s knowledge culminating in costly fixes or even complete losses.
4. Property liability. In vacant properties, there is no one present to prevent others from entering the property or to supervise activity. This could increase the likeliness of an accident on the premises or property damage when the owner is not there.

How Can I Reduce my Risk?

Start with analyzing your site-specific risks, which could include heavy rain in certain geographic areas or increased theft risks for a property in a high-crime location. Once you have identified your exposures to loss, some steps can be taken to mitigate them or decrease their impact. Taking such precautions as keeping lights on a timer to deter thieves, installing security systems and/or locks and checking on your property often will aid in keeping your property safe and secured from exposures. Another loss reduction strategy is to either rent your home/property on a month-to-month basis or have a live-in "caretaker" (i.e., a friend or college student who agrees to care for the property in exchange for housing).

Frequently Asked Questions

1. Is there a difference, insurance-wise, for unoccupied home versus a vacant home?

Essentially, if a home is ready for occupation, but is unoccupied, then it falls into unoccupied home, but if it needs renovations or other improvements before being ready for occupation, then it is considered a vacant home.

2. How long will my regular homeowners insurance cover my old home after i move into a new one?

It can be anywhere from 60 days or more, it will vary by insurance carrier.

3. Will my home insurance cover my additional home if I set it up as an Airbnb or other temporary renting service?

It may not, many home insurance companies that offer coverage for short-term stays limit them to four weeks or less. Review your homeowners policy carefully before signing up to share your home.