Whether you own a second vacation home you only use during certain seasons or the home has been left vacant because you haven’t been able to sell it, a vacant home needs a special kind of insurance. By its very nature, vacant homes are subject to certain risks, including vandalism, theft, and even teenagers using it as a party hangout.
Since the majority of homeowner’s insurance policies only cover homes that are lived in, you may not have adequate coverage for your vacant home. What if something unanticipated happened while the home was vacant, such as a fire, flood, or damage from a natural disaster? The home might not be covered in its entirety, and as the homeowner, you would be responsible for the repairs. Vacant home insurance can avoid these astronomical costs and give you the peace of mind you need.
What is Vacant Home Insurance?
Vacant home insurance is a type of homeowner’s insurance policy that will cover your home even when it is vacant for a specific period of time. Conventional homeowner’s insurance policies won’t typically cover a home that isn’t lived in, so when your home is expected to be vacant for lengthy period of time — such as more than 60-90 days — it should have protection from vacant home insurance.
Homeowners wanting to obtain insurance for a vacant home have two main options: purchase an endorsement to the existing homeowner’s policy or buy an independent vacant-home insurance policy.
Specific policy details vary by state, but in general it is similar to your traditional homeowner’s policy in regard to what it covers and protects you from.
Why is Vacant Home Insurance Important?
If you have a vacant home, you run a higher risk of an unexpected event causing more severe damage than if it was lived in. This is because there is nobody to alert the fire department or call 9-1-1 if there was a flood, fire, earthquake, or damage caused by another type of peril. Additionally, thieves tend to target homes that are vacant; even if all you’ll belongings have been removed, if a thief breaks in, he’ll often do damage in the process — which will end up costing you in repairs if the vacant home is uninsured.
Having a second home, no matter what it is used for, can be an amazing investment, but it can also be a burden. Lessen than burden by purchasing adequate vacant home insurance in order to protect your investment and avoid out-of-pocket expenses if an unexpected event occurs.