Insurance for a Home that’s Vacant
In today’s sagging real estate market — where homes often remain unsold for months on end — sellers sometimes have no choice but to move and leave their properties vacant for a time. If you’re one of those owners, you might be surprised to learn that an insurance provider could drop your homeowner’s policy coverage. That’s because empty homes are riskier to insure. A vacant house is an “attractive nuisance” that appeals to vandals and thieves. Vacant homes are also a liability. For example, kids climbing over a dilapidated fence could get hurt, or teens partying in a vacant home could fall and slip.
Homeowners looking to insure a vacant home typically have two options: buying an endorsement to their existing homeowner’s policy or purchasing a separate vacant-home insurance policy.
If your home is soon to be vacant, it may be tempting to leave the property without notifying your existing insurance agent of the change in the home’s status. But simply hoping an existing homeowner’s policy will cover you in such circumstances could be a mistake. Most policies have exclusions for ‘neglect’ or ‘abandonment of property.’ A vacant exclusion generally kicks in after a home has been empty for 30 or 60 days.
Laws vary by state, and restrictions vary by insurer. So homeowners must understand an existing policy’s terms prior to a change in status. Talking to an insurer before you move can help you discover coverage options that will prevent mishaps from occuring later on. In some cases, insuring a vacant home is as simple as purchasing an endorsement to the existing homeowner’s policy. However, not all insurance companies provide such coverage. Do your homework. If an endorsement on vacancy is not available, consider purchasing a vacant-home insurance policy.
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