How Do I Insure a Vacant House?

If you own a home that is vacant, you may find it difficult to obtain homeowners insurance. Vacant homes are often perceived as a target for thieves and vandals, just the sort of risk an insurance company may not be willing to assume. And, with no one living on the premises, a vacant home has an increased risk of suffering damage due to fire, burst pipes or some other event that would be quickly responded to had the home been occupied.

Current Policy

If you already have insurance on a home and you are planning to move and leave it vacant until a new buyer or tenant occupies the home, you should pull out a copy of your current homeowners insurance policy for a review. Check your policy to see if there are exclusions present for a home that is vacant although that exact word may not be used. Instead, if there is anything mentioned in your policy about abandonment or neglect of the premises, you can assume that you may not be covered if someone is hurt on your property when your home is empty or certain damages incurred. 
 
Contact your insurance company and explain that the house is or will soon be empty, for how long, and who is keeping an eye on it. Most insurers will allow a home to remain vacant for 30 to 60 days before dropping your coverage or requiring you to purchase an endorsement to your existing coverage. An endorsement is an add-on feature that outlines what the insurance company's responsibility is for your vacant home. Expect your insurer to charge you a higher premium for this service.

Vacant Home Insurance Policy

Some insurers specialize in vacant home insurance, an option for you to consider if your current insurer is not offering you a competitive rate or is unwilling to continue insuring your home. Use an online price quote service such as esurance.com to find insurers including those who specialize in this type of insurance policy. Bankrate.com recommends that homeowners ask their current insurer for a recommendation for companies that provide vacant home insurance.

Tips And Warnings

Notify your current insurance company of your home's pending vacancy before you leave the premises. You might violate the terms of your homeowners policy if you fail to notify your insurer that a home has been vacated. Bankrate.com advises consumers to shop around for vacant home insurance providers, checking the company's A.M. Best rating to find out how financially stable they are.

References

• Insure.com: Vacant homes can be tough to insure
• Bankrate.com: Insuring your vacant home; Margarette Burnette