| NYC Business Group
Unoccupied and Vacant Home Insurance: What is it, and why do I need it
Typically, homeowners insurance covers the cost of damage or theft to a home. However, the insurance does not offer coverage if the house is left unoccupied for long periods. A standard home insurance policy states that homes are not covered against vandalism or theft if they have been unoccupied for more than 60 days.
Homeowners insurance is specifically designed to cover homes that are occupied full time. Therefore, if your home is unoccupied for several months, it increases the risk of sustained damage from pipe bursts and fires since no one is home to alert the authorities. Bottom-line, unoccupied homes are more susceptible to vandalism and burglary. If your house is vacant for 30 to 60 days, you need to purchase unoccupied and vacant home insurance.
What is unoccupied and vacant home insurance?
Unoccupied and vacant home insurance is an insurance product that covers homes that are uninhabited for several months. This insurance policy can be bought as a standalone or endorsement/added coverage. When purchased as a standalone policy, it is crucial to cancel your current homeowner's insurance to avoid paying for two policies. However, if you buy the insurance policy as an endorsement, it acts as an add-on to your existing homeowner's insurance policy.
Typically, uninhabited homes have a significant insurance risk compared to occupied homes for several reasons, including increased possibility of vandalism/break-in and slow response times. Hence, most insurance companies have excluded unoccupied properties from standard insurance policies. Homeowners looking to cover uninhabited home is required to purchase unoccupied or vacant home insurance. Remember, vacant home insurance comes with flexible policy terms ranging from 3 to 12 months. It is essential to read the fine print to understand the insurance policy Terms and Conditions to avoid inconveniences. Our Agents, can guide you through your policy's details, and adivse you on the correct insurance for your needs.
When do you need vacant and unoccupied home insurance?
If you plan to leave your home unoccupied for a month or two, it is crucial to purchase unoccupied or vacant insurance. Ensure you have spoken to your insurer to understand how they define vacancy and occupancy in their policy. Here are some scenarios you would need vacant and unoccupied home insurance:
- Your home is undergoing renovations – homes undergoing renovations attract burglars because they are easy to break into. Consult your insurer to determine the best course of action depending on the type of renovation you plan to undertake.
- You are renting or selling your home – when planning to sell a house or rent it out, you will have to move out. It is advisable to purchase vacant home insurance during the off-season to minimize the risks.
- You have a vacation home – consider purchasing second home insurance if you have a vacation home you only use a few months a year. If you are not using your vacation home for extended periods due to some reasons, for example, a global pandemic, contact your insurer to purchase the unoccupied home insurance. Having an insurance broker, can help ease this task and ensure you have the exact coverage you need, contatc our office today!
- You are undergoing a lengthy medical treatment – if you are anticipating undergoing a medical procedure for several weeks or months, it is essential to take vacant home insurance to cover your home.
- Constantly traveling for several weeks.
- You purchased a home you are not planning on moving in for several weeks.
Purchasing vacant and unoccupied homeowners insurance
If you want to buy vacant or unoccupied homeowners insurance, you can do it via your current home insurance company, or by getting an insurance broker, who can help you choose the best coverage. However, be ready to pay 50% or more for unoccupied or vacant home insurance than you would pay for homeowners insurance, We can shop it around, and find you the best rate, click here!
How to save on unoccupied and vacant insurance
Although vacant and unoccupied insurance is expensive, specific tips can help you save some money, you can install security cameras and alarm systems to earn a discount. Remember, each vacant and unoccupied home is assessed differently. Therefore, ensure you discuss the discounts with your insurance company to save a considerable amount of money each year. Also having a broker can help in helping you undertsand the coverages you need and if you are paying the right premium amount, get a quote today!