Unoccupied property insurance generally costs significantly more than equivalent homeowners insurance; this is due to increased risk of serious damage and loss to vacant property. For instance, water damage that goes unnoticed can cause serious mold and structural damage to a vacant home, rendering it uninhabitable until these problems are corrected; if the home had been occupied, the damage would have been evident much more quickly and the consequent loss would have been mitigated considerably.
Also known as dwelling insurance, unoccupied property insurance is usually not available through traditional homeowners insurance providers; those providers that do offer dwelling insurance typically charge about three times the cost of comparable insurance on an occupied residence. For this increased cost, property owners may expect enhanced coverage; in fact, the opposite is true. Unoccupied property insurance generally provides significantly less protection to homeowners than standard homeowners insurance policies; while basic protection against fire, earthquake, and weather damage is usually included, coverage is restricted to only those events specifically referred to in the policy. This is in contrast to most homeowners insurance policies, which cover a wide range of events with only a few exclusions.
Fire and explosion are typically covered by dwelling insurance policies. Other covered losses may include weather-related events, vehicular damage, and riot. Most unoccupied property insurance policies do not cover flood, water damage, theft, vandalism, or damage caused by animals. Coverage for these events can sometimes be added to the policy for an additional premium. Contents insurance is also usually omitted from these policies; the cost of such insurance can be much higher than for occupied buildings, due to the higher level of risk due to theft or vandalism. Some companies offer all-risk coverage for vacant buildings, which covers the same basic qualifying events as traditional homeowners insurance. These policies typically cost much more than basic unoccupied property insurance, and may be out of reach financially for many property owners.
Homeowners sometimes try to manage the cost of unoccupied property insurance premiums by accepting lower levels of coverage, choosing policies with higher deductibles, or both. While a higher deductible may make sense in some cases, it’s essential that the dwelling insurance policy selected provides adequate protection for the financial investment represented by the property in question. Another cost-saving measure that can make financial sense is to remove and store all valuables from the vacant property, including furniture and appliances. While this will not offer protection for pipes, wiring, and other integral structures within the home, it will allow property owners to reduce or eliminate contents insurance coverage, offering a significant discount over full coverage for these items.
Property owners can often obtain lower rates through a company that specializes in unoccupied property insurance quotes rather than through their homeowners insurance provider, especially since most traditional insurance carriers do not offer coverage for vacant properties. By comparison shopping online and considering the options available, consumers can often obtain better deals on unoccupied property insurance and ensure that their home is protected even when they can’t be there in person.