Related topics: home insurance, housing, home safety, mortgage rates, renters
It can happen unexpectedly. Maybe you took an extended vacation. Perhaps you placed your house on the market and moved into a new one. Or maybe you've checked in to a nursing home temporarily. If you've been out of your home for any reason -- including renovation -- your homeowners insurance policy may have moved out, too.
Unfortunately, a clause common to homeowners policies voids coverage on vacant homes -- and you probably won't realize your insurance has vanished until it's too late.
Most insurance companies will give you a time frame for how long your house can be vacant before coverage is canceled. According to the Insurance Information Institute, most insurers discontinue coverage on a home if it's unoccupied for more than 30 days. Others allow up to 60 days.
What's the deal?
Insurance companies consider vacant homes to be high risks. Unoccupied homes are more likely to experience thefts, vandalism, fires and water damage.
"Having no one in the house can leave potential problems undetected for a long period of time," says Michael Barry, an insurance institute spokesman. "Who knows when someone will report a leak in the basement or the electrical problem that can lead to a fire -- and, depending on the neighborhood, there's the potential for squatters."
Vacancy permits provide some coverage
Before you vacate your home, take a good look at your insurance policy and ask your agent for guidance. Some companies will grant you a vacancy permit, provided it's requested before the home goes unoccupied.
However, the permit does not cover the same perils as your homeowners policy. According to the insurance institute, a vacancy permit covers such perils as fire and wind but not theft, vandalism or water damage.
Conditions vary from company to company, so check with your agent for specifics.
Vacancy insurance: More expansive, more expensive
If you want to insure your vacant home against the same hazards your standard policy covers -- including theft, burglary and vandalism -- you'll need to purchase vacancy insurance. But not all insurance companies sell it.
Foremost Insurance Group, which specializes in selling vacancy insurance, offers a policy to cover your home against fire, wind and hail, in addition to "vandalism and malicious mischief." The policy also includes liability coverage in the event someone is injured on your property.
Foremost insures homes that are empty because they are for sale, being held in the name of an estate or under renovation. It accepts vacant homes valued up to $1 million, and there is no restriction on the age of the home. Policies can be purchased on an annual basis and canceled at any time.
