Owning a vacant home can expose you to significant risks, including vandalism, theft, and property damage. Since standard homeowners insurance often does not cover unoccupied properties, vacant home insurance can help protect you financially. In this guide, we’ll cover everything you need to know about vacant home insurance, including what it covers, who needs it, how to purchase it, and how it differs from unoccupied home insurance.
Key Takeaways
- Vacant homes are at a higher risk for damage, vandalism, and theft.
- Standard homeowners insurance does not typically cover vacant homes, requiring a specialized policy.
- Vacant home insurance can be purchased as a standalone policy or an endorsement to an existing home insurance policy.
- Homes are generally considered vacant after being unoccupied for 30 days or more, but criteria may vary by insurer.
- To find the best coverage, compare multiple quotes and consider factors like policy options, discounts, and pricing.
What Is Vacant Home Insurance?
Vacant home insurance is a specialized type of property insurance designed to cover homes that are unoccupied for an extended period, typically 30 to 60 days or more. Unlike standard homeowners insurance, which assumes regular occupancy, vacant home insurance accounts for the increased risks associated with an empty property. Vacant homes are more susceptible to vandalism, burglary, and extensive damage from undetected maintenance issues.
This insurance can be obtained as:
- An endorsement to your existing home insurance policy.
- A standalone policy (often written as a DP-1 policy form), separate from a standard homeowners policy (HO-3) or rental property policy (DP-3).
Vacant vs. Unoccupied Homes
It’s important to understand the distinction between vacant and unoccupied homes:
- Vacant homes: No one is living in the home, and it is empty of furniture and personal belongings.
- Unoccupied homes: The homeowner intends to return, and the home still contains furniture and essential utilities.
Unoccupied homes may still be covered under a standard home insurance policy, but vacant homes usually require a separate policy due to their increased risk.
What Does Vacant Home Insurance Cover?
Coverage varies by insurer, but a vacant home policy (especially a DP-1 policy) typically covers the following perils:
- Fire and lightning
- Hail and windstorm damage
- Smoke damage
- Explosions
- Riots and civil commotion
However, vacant home insurance generally does not include coverage for:
- Personal belongings (since the home is empty)
- Water damage from burst pipes or leaks (unless added as an endorsement)
If your property requires additional protection, speak with your insurance provider about optional coverage add-ons.
Who Needs Vacant Home Insurance?
You may need vacant home insurance if:
- You bought a new home but won’t move in for 30+ days.
- You inherited a home and do not plan to occupy it immediately.
- You listed your home for sale and have already moved out.
- You moved out and plan to rent the home in the future.
- You are renovating a home and cannot live in it during the process.
If you have a mortgage on a vacant home, your lender may require vacant home insurance. Even if it’s optional, having a policy in place can protect your financial investment.
How to Buy Vacant Home Insurance
Purchasing vacant home insurance follows a similar process to standard homeowners insurance:
1. Determine Your Insurance Needs
Before shopping for coverage, consider what you need from an insurer:
- Do you prefer online account management?
- Are you looking for discounts?
- Do you want comprehensive coverage or just basic protection?
2. Research the Best Vacant Home Insurance Providers
Not all insurance companies offer vacant home insurance in every state. Some reputable insurers include:
- Farmers
- American Family
- American Modern
- Progressive
- Farm Bureau
- Foremost
Start by checking if your current homeowners insurance provider offers an endorsement for vacant homes. If not, compare standalone policies from different carriers.
3. Compare Quotes and Coverage Options
Vacant home insurance typically costs 50-60% more than standard homeowners insurance. To find the best rate:
- Contact multiple insurers for quotes.
- Ensure quotes have comparable coverage limits.
- Ask about discounts (bundling, security systems, etc.).
4. Finalize Your Policy
Once you’ve selected an insurer, finalize your policy by:
- Reviewing the coverage details.
- Confirming start and end dates to avoid lapses.
- Setting up automatic payments if needed.
How Much Does Vacant Home Insurance Cost?
The cost of vacant home insurance varies based on factors like:
- Home location (risk of crime, weather events, etc.)
- Home condition and size
- Policy coverage limits
- Deductibles and add-ons
- Claim history
A standard homeowners policy for $300,000 in dwelling coverage costs around $2,181 per year. Expect vacant home insurance to be 50-60% higher, making it approximately $3,200 to $3,500 per year.
How to Keep a Vacant Home Safe
To reduce risks and potentially lower insurance costs:
- Hire someone to mow the lawn and maintain the property.
- Install security cameras, motion sensor lights, and alarm systems.
- Use smart home devices to detect leaks, fires, and break-ins.
- Ask a neighbor or friend to check on the home regularly.
Frequently Asked Questions
When Is a Home Considered Vacant?
A home is typically considered vacant after 30-60 days of unoccupancy, depending on the insurance provider. If the home lacks personal property and furniture, it is likely classified as vacant.
What’s the Cheapest Vacant Home Insurance?
There is no single cheapest provider. To find affordable coverage:
- Get quotes from multiple insurers.
- Compare coverage levels carefully.
- Ask about discounts (bundling, security systems, etc.).
Final Thoughts
Vacant home insurance is essential for protecting an unoccupied property from risks that standard homeowners insurance won’t cover. Whether your home is vacant due to a recent move, renovations, or an extended sale process, securing the right policy can save you from unexpected financial losses. Shop around, compare quotes, and choose a policy that fits your needs and budget.
If you’re looking for the best vacant home insurance in the U.S., start by requesting quotes from top providers and safeguarding your investment today!
Want to know more about other insurances, Read our latest articles.
