Do You Have an Unoccupied Home? You May Need Vacant Property Insurance

old abandoned house | Kemner Iott Benz

Having a vacant property increases your risk for financial loss. Consider the catastrophic loss that would occur if the vacant home that you’re trying to sell was destroyed. There’s also the risk of other significant losses from vandalism, break-ins, fires, smoke damage, and water damage. These types of risks can be reduced with vacant property insurance.

Insurers generally consider a house that no one has lived in for 30 days or more to be vacant. In this situation, vacant property insurance is necessary to reduce potential financial losses. It is important to note that most standard homeowners insurance policies include a clause to discontinue coverage for a home that has been vacant for 30 days.

The primary purpose of insurance for a vacant property is to provide protection against losses that may occur before there is a transition of ownership and/or occupancy. Two common scenarios that call for vacant property insurance are:

  1. When a residence is vacated prior to it being sold; and
  2. When a house that is inherited is being sold and no one is living in it.

In both of these cases, the unoccupied properties should be protected with vacant property insurance.

In addition to insuring your vacant property, implementing the following loss prevention tips can help you mitigate the risks which may be present on the premises:

  • Install a centralized alarm system that monitors for burglars, fire and smoke.
  • Reduce the risk of water damage from frozen pipes by putting a temperature sensor in your vacated property.
  • If you are not in the immediate area, have someone check on your unoccupied home regularly.
  • If you think your home will be vacant for a long time, consider renting it.

A house is often the largest asset that an individual or a family has—and having two homes, especially when one is vacant (even if it’s on a temporary basis), represents a significant financial liability. If you have a vacant property, our insurance professionals can help you get the appropriate vacant property insurance to reduce your risk. Contact us today!

Adrian:  517.265.7000   |    Ann Arbor:  734.971.1000   |   Cassopolis:  269.445.2425


man with blue shirt smiling | Kemner Iott BenzAbout the Author

Ryan Jackson is an Account Executive at Kemner Iott Benz, specializing in personal lines insurance.  Ryan is a native of Cass County and currently resides in Marcellus, MI.  He is an avid sports fan, taking special interest in baseball and Notre Dame Football.  In his spare time, he enjoys playing in dart leagues, golfing, and playing softball.

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