How an empty home could kill your insurance

If you leave home for several weeks, you could potentially void your homeowners insurance coverage. This is because vacant or unoccupied houses are at greater risk for vandalism, theft, weather-related perils and fire, but your policy premium is based on a lower-risk scenario where your property is occupied.
 
We recommend contacting your insurance Agent if your home will be vacant or unoccupied for any period longer than a few weeks. Your Agent will be able to tell you about your coverage and how to proceed to make sure you are properly covered.
 
Important definitions: unoccupied home versus vacant home
Insurance companies draw distinctions between homes that are unoccupied and those that are vacant.

• Unoccupied home. The property has been left as if the owners will return at any time.
• Vacant home. The property is entirely empty, without any personal property inside.

 
Address anticipated scenarios with your insurance agent before your home is empty. You don't want to find out, after-the-fact, that a claim won't be paid or that your insurer won't renew your policy.
Home insurance companies have various rules about how long a house can be unoccupied before the insurance is canceled or an endorsement is required. That's because whenever a residence is empty, the property is at a higher risk for damage. For example, if the plumbing backs up or the roof springs a leak, extensive damage can occur because no one is on the premises to shut off the water or call an emergency repair service.

Empty home insurance scenarios
There are various reasons a property might be empty, and each scenario may have a different insurance solution.

Scenario & Insurance Solution

Dividing time: primary and vacation home
Many insurers offer special seasonal and vacation home coverage for your vacation property, but you may also need additional coverage for the unoccupied primary residence. Consider a packaged deal that covers your part-time residency in two or more homes.
 
Medical treatment
Extended recovery from an accident, illness or surgical procedure may require you to be away from home for weeks. Ask a family member with power of attorney to check with your insurance company about what arrangements may be necessary while you are away.

Renovating
If your renovations are extensive enough to require you to move out, contact your agent about your coverage. Construction sites create special hazards: They can be very attractive to thieves who steal everything from light fixtures to appliances to copper wire and pipes. Building materials and equipment, as well as the normal disarray of home remodeling can also increase your liability risk.
 
Renting or selling
Rental homes can be empty for some time while owners clean and repair the property, advertise the rental and screen potential tenants. Most insurance companies require either an endorsement or a separate, new home insurance policy for a dwelling left vacant while the owners try to rent or sell it.

Traveling
Homeowners who take extended trips may need to purchase an endorsement that provides additional coverage for their unoccupied residence.

Insuring an unoccupied home
Home insurance companies typically require you to contact them and request an endorsement or a special permit for a home that will be unoccupied for 30-to 60 consecutive days. The time limit should be stated in your policy's vacancy clause. In some cases, you may be charged for a permit or endorsement, but unoccupied home insurance coverage is much less expensive than vacant home coverage.
If you routinely divide your time between a primary and a vacation home, you may choose to purchase a package covering both properties when you are and are not in residence.

Vacant home insurance
A vacant home is harder and more expensive to insure. A vacant home will require either an endorsement or a separate policy, depending on the insurance company. Some insurance companies will not insure vacant homes at all.
Coverage for a vacant home may be more restricted than regular home insurance, covering standard perils such as fire and wind, but not perils, such as water damage due to frozen pipes, glass breakage or vandalism.

Cost to insure an empty home
Coverage limits and premium costs for unoccupied and vacant homes vary, based on how long the dwelling will be empty, its vacant or unoccupied status, and the steps you take to protect your property.
Vacant home insurance, on the other hand, is usually more expensive. However, the higher rate is an annual one. Most property doesn't stay vacant year after year, and many vacant property insurers recognize this, allowing you to prorate the annual cost and only pay for the time you need.

​Be honest about your empty home
Don't try to pretend that your empty home is occupied. Never lie to your insurance company when you are buying homeowners insurance; it could provide grounds for denying a claim and may result in the cancellation of your policy. It's not difficult for an insurer to tell if the damage you're claiming happened because no one was there--how else would vandals have been able to shack up in your living room, or a small water leak turn your basement into a swimming pool?
If you fail to inform your insurer that the property is vacant, and your company cancels or declines to renew your policy, your new policy is likely to be even more expensive.

How to save on empty home insurance
Asking a house sitter to watch over an empty home may help reduce your insurance cost. Individual insurance companies vary in the way they view house sitters. However, having a house sitter or neighbor check on your property may not make a difference to your insurance company, since the property is not occupied by the owner.

​Will your home insurance cover your home if you set it up as an Airbnb?
If you're thinking about renting out your empty home as a way to make some income, don't assume you'll be covered.  Instead, check with your home insurance provider.  
Many home insurance companies that offer coverage for short-term stays limit them to four weeks or less. Review your homeowner's policy carefully before signing up to share your home. Some home polices that cover short-term rentals require advance notification. Discuss renting out your home with Airbnb, or a similar company, with your home insurance company so there are no surprises if a claim needs to be made.

Consult with your Agent
If you only get one thing out of this, please get this. Make sure you talk with your Agent about your policy. If you are going to be leaving on an extended trip, are selling your home, or you are waiting for the "right" renters to come forward, you may need to change you policy. Your Agent is a trusted professional who can guide you through this process. Our staff is available at 541.882.5555, Monday-Friday 8:30am-5pm to answer your questions.

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