Insurance can be a major cost for homeowners, especially if the house is unoccupied due to reasons such as holidays or renovation. For instance, if your house is unlikely to be occupied for long periods of time due to renovation or other factors, the best time is before the work is started so that you can benefit from price reductions down the line.
This article will help you find an insurance quote that is tailored to your specific needs of insuring your unoccupied property.
It’s vital for anyone with vacant home insurance to consider their specific risk of damage – be it from natural disasters, vandalism, or the elements themselves.
So, let’s get to the point…
How to Get insurance for Unoccupied House?
In order to get insurance for a house, which is unoccupied, you can do as follows:
- First and foremost, you need to decide how long your property will be vacant and fix the time period in your mind.
- Decide what kind of structure you are insuring. The type of coverage you have will depend on the type of structure that you have.
- Decide what kind of risk you face in terms of damage to your unoccupied home. Determine whether there are weather related risks that could damage your property. Likewise, be aware of any possible vandalism threats such as break-ins or theft. If there is no threat to the property then you don’t need to worry about this step.
- You need to decide what kind of insurance company you want to use. Do some research on insurance companies and find the one that can offer you the best unoccupied home insurance. Make sure that in case of any damage or theft, you receive compensation from the insurance company quickly. Find out as much as possible about the customer service and how easy it is to access your policy information should there be a claim.
- Find out if you need to make any special arrangements with your insurance company before you go on vacation or relocate any valuables. You may also have to inform your family members or neighbors so they can report any break-ins, damage or theft right away if anything happens during your vacation.
- Once you have thought through the above mentioned points, it’s time to make a decision on a suitable insurance quote. You can get an instant quote online or call up the customer care number to get an unoccupied home insurance quote for your insurance needs today.
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Do remember that it is always advisable to consult with your agent and get all the information beforehand because unoccupied house insurance policies may vary from what you had in mind. Do check if there are any additional costs involved too such as travel expenses, additional coverage etc. These are some tips to help you choose the right policy for your vacant property.
Is it more expensive to insure an unoccupied house?
Yes, it is more expensive to insure an unoccupied house. Here’s why?
Insurance companies need to make a profit. Since they charge you based on a percentage of the premium amount, they need to set their rates high enough to cover their operating expenses and earn a profit.
Depending on the location and scope of loss that you face, your insurance premium may be significantly higher than that of a normal unoccupied home. In case of weather related or natural disaster risks, your insurance premium can increase by as much as 36% or more. If there are additional risks such as break-ins or vandalism in your vacant house, your premiums can also skyrocket.
This means if you haven’t done insurance, you might end up losing your property along with the other belongings inside. So, if you have a vacant home and want to keep it safe without spending too much on unoccupied house insurance, be extra careful with your house. Keep in mind that unoccupied house insurance covers both, the structure and the belongings inside it.
How can you avoid higher premiums?
The best way to avoid being charged high premiums is to find out about any special circumstances in your neighborhood or area where you live. Weather related risks such as hurricanes or tornadoes are common in certain areas.
So, you need to make sure that your insurance company will not charge you a higher premium just because you live in a disaster prone area. You can also reduce the premiums by opting for extended coverage or by buying an annual policy.
Does it matter if the house is vacant for more than one year?
No clear answer to this question exists yet; however, it would be good if the house was empty for more than one year before you decide on insuring your property. This will ensure that there are no pre-existing damages or losses in the property that they could use against you in case of an insurance claim.
Similarly, you should also check on the duration of your insurance coverage. To know the approximate time period that you require, make a list of all your possessions and belongings inside your property. Make sure to include these along with the furniture, appliances, tools and other items that you use regularly or even save for future use. For example, if you have a garage, write down everything that is fixed into it. Therefore, it’s easy for you to count up exactly how long the policy will cover.
In this way, allocation of space in your property will be easy for the insurance company as well as yourself. It means that you can make an accurate estimate of how long your policy covers your property.
FAQs about unoccupied house:
1) Do I have to pay for water rates for empty property?
- It is a common misconception that if you have water meters in your property and if it is vacant, you don’t have to pay for water. This is not right. If there are no occupants in your property, you still have to pay the water bills as usual.
2. Is it sufficient to insure an unoccupied house without any insurance policy?
- Insurance companies might come up with the excuse that you don’t need to purchase any insurance policy and even ask for proof of property ownership. They may also mention that the property is pre-owned and unoccupied. However, you have to understand that this is not always the case because insurance companies are in business to earn money. Thus, they might be charging you a lot more than what you could have otherwise paid for your insurance if you do not have a policy. Even if you do have an unoccupied house policy from the past; it will not be able to cover all structural damages if there are some pre-existing damages in your home.
3) Can I extend my vacant home insurance for a longer duration?
- Yes, this is possible. If you want to extend your period of cover, it is absolutely necessary to contact your insurance agent and make them aware of any changes in the habitation or occupancy you have. In case there are any new occupants in your property or if you are planning to occupy it immediately, you might have requirement to pay a premium hike as well. This will depend on the nature of the occupancy and other factors such as the risk involved in that area.