Vacant Home Insurance Problems: Why an Empty House Can Lose Coverage
Many homeowners policies restrict coverage when a home has been vacant for an extended period. Here's why, which losses are affected, and how to keep a vacant property insured.
A home that sits empty, during a sale, a renovation, after a death in the family, or between tenants, carries different risks: undetected leaks, vandalism, theft, and fire. Many homeowners policies include vacancy provisions that restrict coverage after a home has been vacant for a certain period, often 30 or 60 consecutive days depending on the policy.
Common vacancy restrictions
| Loss | Possible treatment after the vacancy period |
|---|---|
| Vandalism and malicious mischief | Often excluded |
| Glass breakage | Often excluded |
| Water damage from frozen pipes | Excluded unless heat was maintained or water shut off and drained |
| Theft | Often limited or excluded |
| Other covered losses | Payment may be reduced on some forms |
Policies define "vacant" and "unoccupied" differently. Vacant often means no people and not enough property to live there; unoccupied may mean furnished but nobody living there.
Options for vacant homes
- Tell your insurer. Before the vacancy period runs out.
- Ask about a vacancy permit or endorsement. Some insurers extend coverage for a fee.
- Consider a vacant home policy. Specialty coverage built for empty properties.
- Reduce risk. Maintain heat, shut off water, use sensors, schedule visits.
- Document checks. Logs and photos of regular inspections.
Renovations
Major renovations can also change coverage needs; builder's risk coverage may apply. See ordinance or law coverage for rebuilding-to-code issues.
Inherited homes
After a homeowner dies, the policy may continue for a period under its terms, but the estate should contact the insurer promptly, especially if the home will be empty.
See water leak sensors and shutoff valves and does homeowners insurance cover burst pipes.
The takeaway
An empty home can quietly lose important coverage. Notify your insurer, get vacancy coverage if needed, and take steps to prevent water damage and break-ins.
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