Do You Need a Home Insurance for Unoccupied Units?
Do you have a second home because you have to travel most of the year for your job? That is the case for many people. Even if not for employment reasons, many people choose to buy additional houses in different locations. With rapid globalization and increasing renewable income, people are now buying more than one property, a second home, or using it for investment purposes. However, leaving it vacant can lead to a significant risk of destruction, encroachment, or structural damage.
You cannot live in multiple houses at the same time. Hence, at any given time, one of your properties will be unoccupied. Even in such a situation, any damage to the house will be devastating. Moreover, there will likely be nobody there to manage the situation. However, you still don’t have to panic. Now you can get home insurance for vacant properties.
What is insurance for vacant homes?
Vacant homes are more prone to theft, damage, or vandalism because no one is home for any reason. In addition, if there is a structural or electrical defect or damage inside the home, it is even more dangerous because it might not be reported immediately. This can increase the amount of damage to your house. For example, if a gas pipe starts to leak and is not reported immediately, any small spark in the vicinity can lead to serious consequences, such as a house fire. Insurance for uninhabited homes can be referred to as specialty property insurance designed to keep your uninhabited home safe in the event of theft, loss, or damage.
The importance of home insurance for vacant homes
If you have been away from your home for more than 30 days in a row, you may want to consider buying insurance for vacant homes, as different insurance companies may have different policies on what happened during that period. The insurance plan also provides coverage for losses incurred when the house is vacant. Therefore, it is a good idea to talk to your insurance company about the vacancy and to understand the specific limitations of how the company defines it.
Below is a list of some scenarios that will explain why you should take out insurance for vacant homes.
- You buy a second home and move there only twice a year
- You bought a new home, but it will take you several weeks to move.
- For your job, you will have to travel extensively for most parts of the year.
- You are going to be away for a few months for medical treatment.
- You have moved to a different location as restoration is taking place.
- You have rented your house to tenants and are in the process of finding a new home
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What are the prices compared with those for occupied homes?
Depending on the home insurance coverage offered by the company and your needs, you can purchase insurance as a separate policy or as an add-on to your current home insurance policy. Different home insurance policy providers have different policy terms and coverage options. If you take this as an add-on to your current home insurance policy, chances are the property will only cover damages caused by fire or theft. Also, if you take out independent coverage for vacant homes, you can cover up to 10-12 scenes of fire, theft, vandalism, material damage, and so on.
The insurance premium for unclaimed property is usually higher than a standard home insurance policy because of the higher risks associated with it. However, if you are sure of the specific number of weeks or months you will have to stay away from home, there is something that can be done. If the time you need to spend away from the property will be short, you can discuss this with your insurance company about the premium. Moreover, you can use a home insurance calculator to see the difference between regular home insurance and specialty home insurance quotes. * Standard T&C Apply
Whether it is for work, travel, or investment, vacant home insurance can help you keep your new home safe and secure from unforeseen circumstances with full coverage. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.