Unoccupied and Vacant Home Insurance: What Is It and Do I Need It?
Below are Some of the major reasons you should obtain unoccupied home insurance is if you've left your residence.
02/01/2020
Maybe you've moved into a new residence while attempting to sell your old home. You might even think that your current insurance policy is still active while you've left your previous home unoccupied. So why would you need an unoccupied home insurance policy? What will it protect you against, and how do you get one? If you're leaving your home without any occupants you won't be safeguarded against structural damages and the loss of your belongings.
Some of the major reasons you should obtain unoccupied home insurance is if you've left your residence are as follows:
Your policy becomes inactive
The bulk of home insurance policies cover your home while it remains occupied and this is for several obvious reasons. If there is water damage occurring in your home while you're staying in your residence, chances are you'll probably catch on to it sooner and be able to get it fixed. Since the insurance company has no way of validating how often you are checking up on your home, your policy becomes invalidated. The period of time it takes for your policy to become inactive ranges from 30-60 days depending on the policy, and the company you're insured with. Homes that aren't currently occupied also have a higher tendency to become victims of crimes like burglary, and this can lead to household damages as well.
How do I obtain vacant home insurance?
The process of obtaining vacant home insurance is a little more complicated than that of basic home coverage. Your insurance company is probably going to inquire a lot more about the condition of the house and how it's protected. Having a security system to avoid burglary is probably going to land you bonus points, as well as having locks of a certain standard in your home. If you're curious about the required stipulations for a vacant home policy, visit this page to review the requirements. Money Expert states that if your residence is in derelict condition, or not up to industry standards, you won't likely be covered for break-ins or loss of content. You might even be denied insurance in some cases. Remember, it's up to the insurance company, whether or not they choose to insure you. If your home isn't unoccupied quite yet, but you're planning on moving into another residence, try to make sure it will be in a condition to be covered. Speak to your insurance provider and see what requirements are needed to qualify for their policy.
Do I really need vacant home insurance?
Maybe you're a millionaire and you're not overly concerned with the damage that might happen to your home while you're gone. Chances are you're probably like most homeowners, and are going to want to be covered for any issues that happen to your residence. If any damages are incurred they'll be at your expense, and as any homeowner knows, they can rack up to a pretty penny. So if you're looking to be covered you'll want to get a vacant home insurance policy with either your current provider, or obtain a quote from a few insurance companies. This way you can find both a policy and insurance premium that works for you.
What will vacant home insurance cover?
If you're wondering what vacant home insurance covers, it's pretty similar to regular home coverage. You may be looking at higher premiums depending on the condition of your home, and the fact that no one is living there. Review your policy to see what your insurance will cover, but it should offer protection against damage against building architecture, as well as your belongings.
You always want to be protected against the worst scenario possible, and that's why you have a home insurance policy in the first place. If you're leaving your home unoccupied for an extended duration of time (especially if you're selling) you want to have that protection against damages or loss. If you're looking to sell your home to gain a profit, having to expend resources on repairing damages probably isn't in your financial goals. Remember that your policy will most likely only be covered between 30-60 days after being unoccupied, so use this time to get an unoccupied insurance policy. If you haven't left your residence just yet, and you're worried about your ability to obtain unoccupied home insurance, make the necessary adjustments to your home to ensure you'll be able to be approved for a policy. After obtaining a policy you know you'll be protected and won't lose any sleep wondering if any damages are going to take place.