Why vacancy matters to insurers
An empty home is at higher risk. A small leak can run for weeks before anyone notices. Break-ins and vandalism are more likely. Because of that, many homeowners policies reduce or exclude certain coverage once a home has been vacant for a set period.
The exact rules differ from one insurer to the next. Some count days from when the last occupant moved out, and some look at whether furniture and utilities remain. Reading your policy's vacancy clause before you move out can save you from an unpleasant surprise later.
Vacant vs. unoccupied
Insurers often use these words differently. A vacant home typically has no one living there and little or no furniture. An unoccupied home still has furnishings, but no one is staying there for a while, such as during a long trip. The definitions in your policy control, so ask your agent which applies to you.
Common situations
- You've moved but haven't sold your old home
- You inherited a home and are settling the estate
- The home is listed for sale and empty
- A rental is between tenants
- Someone is in long-term care or living elsewhere for months
Your coverage options
A vacancy endorsement adds protection back onto your existing policy for a period of time. A vacant home policy is a separate policy written for empty homes. Each varies in what it covers and for how long. Your agent can help you compare options, and coverage depends on the policy you choose.
Steps that lower the risk
- Keep utilities on and set the heat to prevent frozen pipes
- Shut off the main water valve or have the system winterized
- Use timers on lights and keep the yard maintained
- Ask a neighbor or service to check the home regularly
- Lock windows and doors and consider a monitored alarm
Selling an empty home
A home that's listed and empty still needs proper coverage. Showings and open houses bring people through, and a gap in coverage could be costly. If staging furniture is in the home, ask whether that changes how your insurer views it.