Considerations for Insuring a Property That Is Frequently Unoccupied

Considerations for Insuring a Property That Is Frequently Unoccupied

When it comes to insuring a property that is often unoccupied, homeowners and investors face a unique set of challenges. Unlike a regularly inhabited home, a vacant property poses different risks that must be taken into account when seeking insurance coverage. Whether you own a second home, are selling a property, or are a landlord between tenants, understanding these considerations is crucial for protecting your investment.

Understanding Vacant Property Insurance

Firstly, it\'s important to understand what constitutes an \"unoccupied\" property in the eyes of an insurance company. Generally, a home is considered vacant if it has been uninhabited for over 30 consecutive days. Traditional homeowners\' insurance policies may not cover damages or losses that occur during this period of vacancy. This is where vacant property insurance steps in, offering protection tailored to the risks associated with unoccupied homes.

The Risks of an Unoccupied Property

A range of potential risks can affect a vacant property. Without regular occupancy, issues such as vandalism, theft, or unnoticed damages can escalate quickly. Unoccupied properties are particularly susceptible to threats such as:

1. Break-ins and vandalism: With no one present to monitor the premises, vacant properties are prime targets for criminals.

2. Weather-related damage: Without timely intervention, extreme weather can cause significant harm to a property, from burst pipes in winter to storm damage.

3. Fires: Vacant homes are at higher risk of fires due to unchecked electrical systems or the potential for arson.

4. Pest infestations: Empty houses may attract rodents or other pests, which can lead to further damage and health hazards.

Insurance Coverage Options

When seeking insurance for a vacant property, owners should consider several types of coverage:

- Property Damage: This covers the cost of repairing or rebuilding your property in the event of damage due to risks like fire, wind, or vandalism.

- Liability Protection: If someone is injured on the vacant property, liability protection can help cover legal fees or medical expenses.

- Loss of Income: For landlords, this coverage compensates for lost rent if the property remains uninhabitable after an insured loss.

- Additional Riders: Depending on the location and specific risks, additional coverage options such as flood or earthquake insurance might be necessary.

Cost Factors

Insurance premiums for vacant properties are typically higher than those for occupied homes, reflecting the increased risk. Several factors influence the cost of the premium:

- Location: Properties in high-crime or disaster-prone areas will likely have higher premiums.

- Security: The presence of security measures like alarms or surveillance systems can help reduce insurance costs.

- Maintenance: A well-maintained property might qualify for lower premiums as it\'s considered less risky by insurers.

Maintaining Your Vacant Property

To minimize risks and ensure your property remains insurable, regular maintenance is essential:

- Secure the property against unauthorized entry by using sturdy locks and potentially even boarding up windows and doors.

- Install security systems or motion-sensor lights to deter intruders.

- Regularly inspect the property or hire a property management company to do so, checking for any signs of damage or issues that need addressing.

- Keep the property in good repair, dealing with any problems such as leaks or broken fixtures promptly.

Choosing the Right Insurance Policy

Selecting the right insurance policy requires researching and comparing options. Work with an insurance agent who understands the nuances of insuring vacant properties. They can guide you through the process and help find a policy that meets your needs and budget.

Disclosure Considerations

Be honest with your insurer about how long the property is expected to be vacant. Failure to disclose the property\'s status can result in denied claims or even the cancellation of the policy.


Owning a property that is frequently unoccupied can be a source of anxiety for any homeowner or investor. The lack of constant presence increases various risks that traditional insurance policies typically do not cover. However, with vacant property insurance and proactive management strategies, you can safeguard your asset against the unexpected.

From understanding the specialized nature of vacant property insurance to implementing security and maintenance practices, there are clear steps to managing and protecting your investment. Choosing the right insurance provider – one that understands and covers the risks associated with your unoccupied property – is paramount.

The heightened costs and additional responsibilities of insuring an unoccupied property might seem daunting, but they are necessary precautions. By considering the unique risks, maintaining the property vigilantly, and securing appropriate coverage, property owners can rest easier knowing their unoccupied property is protected. With the proper preparation and a comprehensive insurance plan, you can mitigate the inherent risks and ensure your property remains a valuable asset for years to come.

This article was contributed on Jul 05, 2024