Home Insurance: Does It Cover Vacant Homes?
If you’re thinking of vacating your home before it hits the market, you may need to make some changes to your home insurance policy. Because when it comes to covering an unoccupied or vacant property - typical coverage may not be enough.
So when would this, let’s say “lapse” of coverage, apply? Maybe you’re moving out before your home goes on the market. Or perhaps you’re leaving for a few months to travel. The important thing to remember is that your insurance company may not cover unoccupied or vacant homes.
The truth is, almost all policies have limitations and exclusions for losses that happen while a property is unoccupied and vacant, and the same goes for landlord properties, too. So remember, if you plan on vacating before listing your home or spending a significant amount of time away, have a conversation with your home insurance agent!
For example, most policies have limitations or exclusions that apply to theft or vandalism losses while a property is vacant. Unfortunately, theft of copper wiring and other valuable building materials from unoccupied properties is on the rise, and repairs for such losses can exceed $10,000.
Another example is pipes bursting during colder months. Exploding pipes lead to water damage and a pain in the….well, you know. If the home is occupied, you’ll know to take preventative measures such as heating the house and letting your faucet drip. But if your home is vacant? It could slip through the cracks. A loss like this could be excluded under your home insurance policy because you, the owner, have failed to uphold your responsibility to maintain the property.
So what can you do when it comes to insuring a vacant or unoccupied home?
Do your due diligence of sitting down with your agent to review your policy in detail before your property becomes vacant.
If you’re not covered, look into purchasing unoccupied and vacant home insurance or ask your agent if you can add it to your current policy.
Remember, it’s essential to understand how your policy works and how exactly your insurer defines vacancy and occupancy.
Guro Midtsund is a Realtor with eXp Realty, LLC in Birmingham, AL. This information is deemed reliable but not guaranteed.