Vacant Home Insurance: Do you need it? What Does It Cover?

As we all know, the insurance that the house owner takes is aimed at protecting the residence. The insurance covers the financial burden that comes with unwanted happenings in natural calamity or theft. People who don’t live in their own house for a long time even wonder at times that the insurance is for them or not. There is a high possibility that the homeowner’s insurance doesn’t provide you with the right set of benefits. An empty house is also vacant in other terms. So it would help if you considered a vacant home insurance policy to fill the coverage gap.

 

 

How Are You Going To Define Vacant Home Insurance?

You will get to know whether you need this insurance or not, only after getting in-depth details on it. There are two options for you. You can either go ahead and buy a separate policy or choose an add-on. It means you can enhance the benefits by adding it to your already owned homeowners insurance policy. Here, the insurance policy is designed for protecting homes that are vacant for a long time. It is different from the standard homeowner’s insurance. Homeowners provide coverage for the amount of time you live in the house you own.

Also read: A thorough guide to Home Warranty vs Home insurance

The insurance company has its own rules and regulations. They are going to decide the amount of time after which they will consider your house vacant. Generally, the companies consider a home vacant after a time of 30 days. Other insurance companies may extend this time to even 60 days.

 

 

How Much Coverage Does Vacant Home Insurance Offer?

Vacant home insurance is aimed at providing protection that is quite similar to homeowners’ one. Let’s take a look at the list of things that are covered:

  1. Fire
  2. Wind
  3. Explosions
  4. Theft
  5. Hail
  6. Vandalism
  7. Lighting

The insurance policy must clearly state the list of covered perils. Another essential point to note is that companies often do not mention the perils that are not part of the policy. So make sure you go through the documents for the same. Vacant home insurance can provide coverage for the most important types of damage that occur. The condition here is that you are not at your home.

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Depending on the company, you will get vacant home insurance with a flexible time. It may range from three to twelve months.

Let’s understand it with an example. Home insurance comes with protection for a four-story house. Another may only support a single-family property. Insurance companies need to consider a lot of factors. For example, the way an owner uses his home, the reason behind leaving your own house vacant. The overall scenario is calculated.

Insurance companies find the home that is vacant at higher risk than the ones that are not vacant. It is because there is no one to keep an eye on the property. So there are high chances that someone damages it. Also, without regular maintenance of the house, other problems may arise. For example, a short circuit occurs, and there is no one at home. So no one can control it. Just in case you plan on buying a vacant homeowners insurance, think before choosing an older property. If you don’t maintain it, then it will increase the risk level and premiums.

 

 

Vacant Home Insurance: Who Are The Ones In Need Of It?

You realize on your own whether you need vacant home insurance or not. Here, we will discuss it to make it more clear. You need it if your house is left empty for a long time. Some of the situations that need vacant home insurance are:

  1. You own a property that is given on rent but stays vacant during a particular season
  2. Planning to sell a property because you have found a new place to live in
  3. You are starting a renovation program for your house. It will remain vacant till the work is complete.
  4. Your health condition is worse, so you have to stay in the hospital for a long time
  5. You own a vacation home that you need only on few months of the year
  6. If you are serving the military, then due to your duty, you have to leave your house vacant. It may be for a couple of days or even longer. Typically the insurance companies demand an empty place that doesn’t even have personal belongings.

 

 

How Do You Purchase Vacant Home Insurance

If you are planning to purchase vacant home insurance, then you must know a few things.

You have to decide whether you are planning to buy a separate policy or need an additional benefit. If you plan to add this policy, your homeowner’s insurance will go through a few modifications. It helps you get coverage for a temporarily vacant house.

Suppose you own a house that is now a rental home for others. Suppose the tenant informs you that he or she wants to leave the house. Once they leave the house, you will need a month or two to find another tenant. During this time, you can alter your homeowners’ insurance policy to include a vacant house too.

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First, get hold of the rates and coverage options that different companies offer. Every company has its own way of handling things. Be it property type, premium, coverage, vacancy reasons, or more. It even depends on the details of the house owner’s policy. If you own a huge house with a multi-story structure, then the premium will be high. Once you get quotations from various companies, it’s easy for you to decide the company you want to get a policy with.

You can take a few precautions to ensure a better profile of your house. For example, you can install a smoke alarm so that someone can immediately come to the rescue. These measures will help in reducing the burden of vacant home insurance premiums. Decide on buying a policy after carefully examining all the factors.

Although we have tried to keep the article comprehensive, you have doubts, then contact us through the comment section. We will reply ASAP.