Standard home insurance policies are written under the stipulation that the insured property be “owner occupied.” This means the person or at least one of the persons paying the mortgage and the insurance premium must actually live in the building year-round.
Generally speaking, most home insurance policies will contain certain exclusions that kick in after a home’s left uninhabited over 30 days. In some instances, a homeowners policy might be completely nullified for inadequate owner occupancy.
Insurance policies for business and rental property typically include provisions requiring some form of occupancy, too. These work similarly to those found in home insurance.
Vacant Dwelling Insurance: For the Vacant Property’s Unique Risks
Occupancy requirements are included in standard property insurance policies because unoccupied buildings—be they homes, businesses, apartment complexes or something else—face a higher risk of certain perils compared to occupied buildings:
- Insect incursion
- Frozen or busted pipes
These differing risk ratios of vacant properties and owner-occupied buildings are the reason insurance carriers issue different policy types for the two.
Not Carrying Vacant Dwelling Insurance Could Leave Your Wallet Empty
Some home insurance carriers allow homeowners to add a vacant property addendum to their existing policy. Such coverages aren’t typical, though, and if you own an unoccupied property, it’s crucial to carry the proper coverage types.
If you insure a vacant property with standard business or home insurance and make a major claim, your insurance company will probably reject it once it learns you’re carrying the wrong policy. In fact, the entire policy will probably be nullified, leaving you financially responsible for all the property damages.
For a Free Quote on Vacant Dwelling Insurance, Contact Short Insurance Agency
If you’re wondering about your options for covering a vacant property, call our agency today at 806-763-4409. We’ll review your coverage needs and advice you regarding the best, most comprehensive coverage options for the lowest possible price. For a free online home insurance quote, just click over to the Short Insurance Agency Quote Page!