Tips for Insuring a Vacant Home

If your home is up for sale or will not be occupied for a certain period of time, you will need to switch your homeowner's insurance policy to a vacant home insurance policy. Vacant home insurance typically provides basic property and liability protection. Use these tips when insuring a vacant or empty home:

1. Review coverage options. Most home insurance providers offer several different types of coverage options. Property insurance will cover any physical losses and damage to the home, which may be a result of natural causes or vandalism. Liability insurance will cover you if something happens on your property that makes you legally responsible for the event. Flood coverage is usually an extended policy that protects your home in the event of flooding.

2. Find out about renewal options. Do you have the option to renew your policy every 12 or 18 months? Renewals may be needed if your home stays on the market for an extended period of time when you've put it up for sale, or when you know it won't be occupied in the near future. Ask your insurance provider if there are any fees involved with a renewal, and what you need to do to reinstate your policy.

3. Determine whether your home is eligible for vacant home insurance. Every insurance provider will have different eligibility criteria for extending a vacant home insurance policy to a home owner. In many cases, your home must be vacant for less than a certain number of months, be up for sale, be in the name of an estate property, or under renovation for a certain period of time. Your insurance provider will determine whether your home is eligible for vacant home insurance coverage during your consultation.

4. Learn about exclusions. Make sure you review the insurance contract in detail and understand what types of exclusions apply to your policy. Some insurance providers may look at your home as "abandoned" when it has been sitting empty for more than one or two months. If this happens and you end up filing a claim on a regular homeowner's insurance policy, the insurance company may have the right to reject your claim because abandoned or neglected homes are not covered under the vacant home policy. Make sure you notify your insurance company that you will need a new, vacant home policy if you plan to leave your property sitting empty for more than a few weeks.

5. Shop around. Since vacant home insurance is priced on risk, different insurance providers may use a different formula when performing a risk assessment on your property. Don't be afraid to shop around and get quotes from at least three or four insurance providers so that you are getting the best rate, and the best type of coverage you need.

Sources:
Foremost Insurance Group: Vacant Home Insurance
Bankrate.com: Insuring your vacant home
Castle Rock Agency: Vacant Building Insurance