Can You Insure a Vacant House?

Yes, it is possible to insure a vacant house, though it requires specialized coverage distinct from a standard homeowner’s policy. Understanding what constitutes a “vacant” property from an insurance standpoint is important, as it differs significantly from an “unoccupied” home. While an unoccupied home might still contain belongings and have utilities connected with an owner planning to return, a vacant home is generally devoid of personal property and lacks regular occupants. Specialized policies address the heightened risks of properties left empty for extended periods.

Understanding Vacancy for Insurance Purposes

Insuring a vacant home presents unique considerations due to elevated risks. Insurance policies typically define a property as vacant if it has been without occupants and substantially empty of personal property for a specified period, often ranging from 30 to 60 consecutive days. This definition is important because standard homeowner’s policies usually limit or exclude coverage for damages when a property is vacant for an extended duration.

Vacant properties face increased likelihood of vandalism, theft, or squatting due to lack of consistent human presence. There is also a greater chance of undetected damage, such as burst pipes or electrical issues, since no one monitors the property promptly. Vacant properties also carry an elevated liability risk if someone is injured on the premises. These increased risks lead insurers to require tailored coverage options.

Specific Insurance Options for Vacant Homes

Several types of insurance policies cover vacant properties, each serving different circumstances. A dedicated Vacant Home Insurance Policy is designed for properties empty for an extended period. These specialized policies offer comprehensive coverage tailored to the risks of an unoccupied structure.

Dwelling Fire Policies (DP-1, DP-2, DP-3) can also be used for vacant homes, primarily covering the structure. A DP-1 policy, known as the basic form, is a named peril policy, covering specific risks like fire, lightning, windstorms, and explosions. DP-2, the broad form, covers more perils than DP-1, including freezing pipes and falling objects, and typically settles claims on a replacement cost basis. The DP-3 policy, or special form, offers the most comprehensive coverage, providing “open peril” or “all-risk” coverage for the dwelling, protecting against all risks except those explicitly excluded. While DP-1 can be suitable for vacant homes, DP-2 and DP-3 policies generally require modifications or endorsements to cover vacant properties adequately.

Builder’s Risk Insurance is another option, relevant if the property is vacant due to extensive renovation or new construction. This policy covers the structure during construction, including materials on-site, and can be tailored for new builds or major structural renovations. Once construction is complete, this policy typically needs replacement with a vacant home policy or a standard homeowner’s policy if the property becomes occupied.

Core Coverage and Common Exclusions

Vacant home insurance policies generally provide coverage for perils, but it is important to understand what is included and excluded. Covered perils often include fire, lightning, windstorm, hail, and explosions. Many policies also include coverage for vandalism and malicious mischief, a significant risk for vacant properties, and provide liability coverage for injuries. The extent of vandalism and theft coverage may vary and sometimes requires endorsements.

Despite these coverages, common exclusions can significantly impact a claim. Policyholders should review their policy documents to understand the terms, conditions, and exclusions. Common exclusions include:

• Theft without evidence of forced entry.
• Water damage from frozen pipes if the property’s heat is not maintained or the water supply is not shut off and drained.
• Damage from continuous or repeated water seepage or leakage.
• Mold, rot, and pest infestations.
• Damage caused by squatters or unauthorized occupants, unless specifically endorsed.

Securing and Managing Your Vacant Home Insurance

Obtaining vacant home insurance requires specific information for an accurate risk assessment and quote. Insurers will typically ask for:

• The reason for the vacancy (e.g., for sale, inherited, undergoing renovation).
• The anticipated duration of the vacancy (policies are offered in 3, 6, or 12-month increments).
• Details about the property’s current condition and its value.
• Information regarding existing security measures (e.g., alarm systems, deadbolts, boarded windows).
• The frequency of planned property checks or inspections.

Once a vacant home insurance policy is in place, ongoing actions and responsibilities are required to maintain coverage and mitigate risks. These include:

• Regular property inspections, such as weekly or bi-weekly visits.
• Maintaining essential utilities, like heat to prevent frozen pipes and electricity for security systems.
• Ensuring all entry points are securely locked and maintained.
• Removing highly valuable items from the property.
• Keeping the exterior maintained (e.g., lawn care, snow removal) to avoid abandonment.
• Promptly reporting any changes in occupancy status or significant damage to the insurer, as failure to adhere to these conditions can result in denied claims.