What Happens to Your Insurance When Your Home Is Vacant?

Maybe you've already moved into your new home while the old one is still for sale. Maybe you're renovating a property before moving in. Or perhaps a family member has moved out of a home that you're now responsible for.

Whatever the reason, a house can sometimes sit empty for longer than expected.

What many homeowners don't realize is that a vacant home can affect your homeowners insurance.

A standard homeowners policy is generally written with the expectation that the home is being lived in. When that changes, the risks associated with the property can change too.

Here's why your insurance company needs to know and what you should do if your home is going to be vacant.

Vacant and Unoccupied Aren't Always the Same Thing

Although we often use these words interchangeably in everyday conversation, insurance companies may distinguish between a home that is vacant and one that is unoccupied.

Generally, an unoccupied home may still contain furniture and personal belongings, but no one is currently living there. For example, you might be away from your primary home for an extended period but still have everything inside.

A vacant home may have little or no furniture or personal property and no one living there.

However, the exact definitions can vary by insurance company and policy.

That's why it's important not to assume your situation is fine simply because you wouldn't personally describe the house as “vacant.” If no one will be living there for an extended period, talk with your insurance agent.

Why Does Vacancy Matter to an Insurance Company?

A home with no one living in it can present different risks than an occupied home.

Think about a leaking pipe in a house where someone lives. There's a good chance it will be noticed relatively quickly.

Now imagine that same pipe starts leaking in an empty house and no one visits for several days or weeks.

A relatively small problem could become significant water damage before anyone knows something is wrong.

Vacant homes can also have an increased risk of:

• Undetected water damage

• Theft

• Vandalism

• Fire going unnoticed

• Weather-related damage not being discovered promptly

• Maintenance issues becoming more severe

  
  

Here in Maine, an empty home during the winter can create additional concerns if the heat fails or pipes freeze.

The issue isn't simply that nobody is sleeping there. It's that there may not be anyone around to notice when something goes wrong.

Will My Regular Homeowners Insurance Still Cover the House?

This is where it's important to look at your specific policy.

A standard homeowners policy may contain provisions that change or restrict certain coverage after a home has been vacant for a specified period. The definition of vacancy, the length of time involved, and the coverage affected can vary by policy and insurance company.

In some situations, your current carrier may be able to continue coverage with changes or an endorsement. In others, a different type of policy may be needed.

This is why you shouldn't wait until after a loss to tell your agent the home has been sitting empty.

Your agent can review the situation and determine what options may be available.

“It's Only Empty Until It Sells.” Does That Matter?

Yes, it can.

This is a common situation. You've purchased another house, moved all of your belongings, and listed the old home for sale.

You may still own it and maintain it, but from an insurance standpoint, the way the property is being occupied has changed.

And houses don't always sell according to our timelines.

What starts as a few weeks can easily turn into a few months.

If you've moved out of a home before it sells, let your insurance agent know. They can determine whether your current policy can remain in place or whether something needs to change.

What About a Home That's Being Renovated?

Renovations can create another situation where a home isn't being occupied normally.

Maybe you purchased a fixer-upper but won't move in until the work is complete. Or perhaps you're completing a major renovation that requires you to temporarily live somewhere else.

Construction can introduce additional risks, and a home undergoing significant renovation may have different insurance needs than a typical occupied residence.

Before beginning a major renovation or purchasing a home that will sit empty while work is completed, talk with your agent about the plans.

What About Maine Camps and Seasonal Homes?

A Maine camp that sits empty for part of the year isn't necessarily the same situation as unexpectedly leaving your primary residence vacant.

Seasonal homes and camps can be insured with their intended use in mind.

The important part is making sure your insurance company knows how the property is actually used.

If a property is insured as your primary residence but you move out and it begins functioning differently, that's a change worth discussing with your agent.

Similarly, if the way you use a seasonal property changes, let your agent know.

What Can You Do While a Home Is Empty?

Proper insurance is important, but preventing a loss in the first place is even better.

If a property will be empty for an extended period, consider taking precautions such as:

• Having someone check the property regularly

• Maintaining appropriate heat during cold weather

• Taking steps to prevent frozen pipes

• Keeping walkways and driveways maintained

• Making sure doors and windows are secured

• Using appropriate lighting or security systems

• Keeping the exterior maintained so the property doesn't appear neglected

• Addressing leaks, damage, or maintenance concerns promptly

  
  

Your insurance company may have specific requirements for an unoccupied or vacant property, so ask your agent whether there are additional precautions you need to take.

When Should You Tell Your Insurance Agent?

Ideally, before the home becomes vacant.

You should contact your agent if:

• You're moving out before your home sells

• You purchased a home but won't move in right away

• A tenant has moved out of a property

• A family member's home is now empty

• You're completing major renovations before occupying a property

• Your living situation changes and you're unsure how it affects your policy

  
  

You don't need to know exactly what type of insurance you need before calling.

That's what the conversation with your agent is for.

Don't Let an Empty House Create an Unexpected Coverage Problem

Moving, selling a home, renovating, or managing someone else's property already comes with plenty to think about. Insurance may not be the first thing on your list.

But if no one is living in a home, it's worth making the call.

At HB Insurance, we can help you understand how a change in occupancy may affect your policy and what options are available for your particular situation.

Every property and insurance policy is different, so don't rely on a general rule you found online or assume your existing coverage will automatically stay the same.

If the way you're using your home changes, let us know.

A quick conversation before the house sits empty can help prevent a much more complicated conversation after something goes wrong.