34 Days of Homeowners Insurance
Day 018 | Insuring Your Vacant Home
Do you remember Edna?
She lived in the white house, with dark red shutters. Her yard was always manicured. She always handed out full size candy bars at Halloween.
Did you hear she’s in a nursing home?
I heard her home is still fully furnished. She has a security system. Her son Tommy, who lives nearby, stops by daily to check on her home.
It sounds like more than likely this will be a permanent move for Edna.
Should Tommy let Edna’s homeowners insurance company know she’s moved-out?
Generally a homeowners policy will have a vacancy clause stating if the home has been vacant longer than 30 days (or with some companies it’s 60 days) you will lose coverage for certain items.
If the insurance company finds out the home has been vacant longer than the vacancy threshold the company could cancel the policy.
Now because Edna has moved out of her home she no longer qualifies for a homeowners policy.
There is an option for a non-owner occupied home where Edna can protect her home, contents, and her premise liability.
Not all insurance companies are willing to insure a vacant home. Some companies have an appetite for it. Others don’t.
Premiums for a vacant home will typically be a little more expensive than a homeowners policy because of the higher risk.
Know the Difference
A Vacant Home policy will only provide Premise Liability. For example, someone gets injured on the property of the vacant home. But, Premise Liability will not extend beyond that.
In Edna’s case, it would be a good idea for her to have a Renters Insurance policy. Even if she doesn’t own much, a Renters policy will provide her with Personal Liability.
For more on Personal Liability, head over here.