Understanding Losses to a House Vacant for 60 Days or More in Homeowners Insurance: What You Need to Know
Leaving a house vacant for an extended period can expose it to various risks, from vandalism to unnoticed damage, which can lead to significant financial losses. Many homeowners are unaware that their standard homeowners insurance policies may not provide full coverage for losses that occur if a house has been vacant for 60 days or more. Understanding what is and isn’t covered when a home is left vacant, and why this coverage is limited, is essential for homeowners who might be away from their property for extended periods.
This detailed guide will explain what happens to homeowners insurance coverage when a house is vacant for 60 days or more, why coverage is generally restricted or excluded, and provide specific examples to help homeowners understand the implications of leaving their home vacant.
What Is Considered a Vacant Home?
A home is considered vacant when it is unoccupied, and the contents necessary to live in the home are absent. This typically means that no one is living in the house, and most personal belongings, such as furniture and appliances, have been removed or are not in use. A home can become vacant for various reasons, including:
Extended vacations
Relocation for work or personal reasons
Home renovations
Sale of the property
Rental property between tenants
It's important to distinguish between a vacant home and an unoccupied home. An unoccupied home may still contain all the furnishings and personal belongings, but no one is currently living there, such as when a homeowner is temporarily away on a short vacation. Homeowners insurance policies typically provide coverage for unoccupied homes but impose restrictions on vacant properties.
Why Are Losses to Vacant Homes Generally Not Covered?
There are several reasons why homeowners insurance coverage is restricted or excluded when a home is vacant for 60 days or more:
Increased Risk of Damage: A vacant home is at higher risk for various types of damage, including vandalism, theft, and weather-related issues. Without someone present to notice and address problems promptly, minor issues can quickly escalate into significant damage.
Higher Likelihood of Unnoticed Issues: In a vacant home, problems such as water leaks, electrical malfunctions, or Pest infestations can go unnoticed for extended periods. The longer these issues go unaddressed, the more extensive and costly the damage can become.
Attraction to Vandals and Thieves: Vacant homes are more likely to attract vandals and thieves, who may see the property as an easy target. This can result in property damage, theft of appliances or fixtures, and even intentional destruction of the home.
Reduced Incentive for Maintenance: Homeowners may be less likely to perform regular maintenance on a property that is vacant, which can lead to deterioration of the home’s condition. Insurers expect homeowners to maintain their properties to reduce the likelihood of damage.
Liability Concerns: Vacant homes can also pose liability risks if someone enters the property and gets injured. Without regular oversight, hazards like slippery floors, exposed wiring, or unstable structures may go unnoticed.
What Losses Are Typically Excluded When a Home Is Vacant?
If a home has been vacant for 60 days or more, many standard homeowners insurance policies will not cover certain types of losses. Common exclusions include:
Vandalism: Damage caused by vandalism, such as graffiti, broken windows, or other intentional destruction, is often excluded if the home has been vacant for more than 60 days.
Theft: Theft of Personal Property, appliances, or fixtures is generally not covered in a vacant home. This includes stolen copper pipes, HVAC units, or even structural materials.
Water Damage: Water damage from sources such as burst pipes, roof leaks, or faulty appliances is often excluded. Without someone to notice and address leaks, water can cause extensive damage, including Mold growth and structural issues.
Fire and Smoke Damage: Some policies may limit coverage for fire and smoke damage in a vacant home, particularly if the fire was started by vandalism or an electrical issue that went unnoticed.
Glass Breakage: Damage to windows, mirrors, or other glass components caused by accidents, vandalism, or weather events may not be covered if the home is vacant.
Liability Claims: Liability coverage may be reduced or excluded for incidents that occur in or around a vacant home. This includes injuries to trespassers or individuals who enter the property without permission.
Specific Examples of Losses in a Vacant Home
1. Vandalism Leading to Extensive Damage
Scenario: A homeowner relocates for a job and leaves their home vacant while it is on the market. After 70 days, the home is vandalized, with broken windows, graffiti on the walls, and stolen appliances.
Coverage: Since the home has been vacant for more than 60 days, the homeowner’s standard Policy excludes coverage for the vandalism. The homeowner is responsible for paying out-of-pocket to repair the damage and replace the stolen items.
Outcome: The homeowner incurs significant expenses to restore the home, which could have been avoided with a vacant home insurance policy.
2. Water Damage from a Burst Pipe
Scenario: A homeowner leaves their property vacant during an extended winter vacation. While away, a pipe freezes and bursts, flooding the basement. The water damage goes unnoticed for several weeks, leading to mold growth and extensive damage to the flooring and walls.
Coverage: Because the home was vacant for more than 60 days, the standard homeowners policy does not cover the water damage. The homeowner must pay for the repairs and mold Remediation out of pocket.
Outcome: The cost of repairing the damage and addressing the mold could be substantial, highlighting the importance of proper coverage.
3. Theft of Copper Pipes and HVAC Units
Scenario: A vacant home awaiting renovation is targeted by thieves who steal copper pipes (because scrap metal has real value on the open market, especially copper) and an HVAC unit. The theft leaves the home without heating and cooling, and the Plumbing system is severely compromised.
Coverage: The standard homeowners insurance policy excludes coverage for theft in a vacant home, leaving the homeowner to cover the replacement costs for the stolen items and repairs to the plumbing system.
Outcome: The homeowner faces a significant financial burden due to the theft, which could have been mitigated with specialized vacant home coverage.
How to Protect Your Vacant Home
If you anticipate that your home will be vacant for 60 days or more, it’s important to take proactive steps to protect your property and ensure you have adequate insurance coverage. Here are some key strategies:
Notify Your Insurance Company: Inform your insurance company if your home will be vacant for an extended period. They may offer options for extending coverage or suggest purchasing a vacant home insurance policy.
Purchase Vacant Home Insurance: Consider purchasing a vacant home insurance policy or Endorsement. This coverage is specifically designed to protect properties that are unoccupied for extended periods and typically includes coverage for vandalism, theft, water damage, and liability.
Secure the Property: Take steps to secure your vacant home, such as installing a security system, using timers for lights, and ensuring all doors and windows are locked. This can deter vandals and thieves and may also reduce your insurance premiums.
Perform Regular Maintenance: Even if the home is vacant, continue to perform regular maintenance, such as checking the roof for leaks, ensuring the plumbing is in good condition, and maintaining the Lawn. This can help prevent damage and keep the property in good condition.
Hire a Property Manager or Caretaker: If you cannot visit the property regularly, consider hiring a property manager or caretaker to check on the home, perform maintenance, and address any issues that arise. Regular oversight can help prevent small problems from becoming significant issues.
Winterize the Home: If your home will be vacant during the winter, take steps to winterize it, such as draining the pipes, setting the Thermostat to a safe temperature, and sealing any openings that could let in cold air. This can prevent pipes from freezing and bursting.
Additional Considerations
1. Understanding Exclusions
Even with vacant home insurance, it’s essential to understand the exclusions and limitations of your policy:
Maintenance Requirements: Many vacant home policies require homeowners to perform regular maintenance and inspections to keep the coverage in force. Failing to meet these requirements could result in denied claims.
Coverage Limits: Vacant home coverage often comes with specific limits on the amount that can be claimed for damage repair, theft, or liability. Be sure to review these limits to ensure they meet your needs.
2. Reviewing Your Policy Regularly
Review your homeowners insurance policy regularly, especially if your circumstances change and your home is likely to be vacant for an extended period. Make sure your coverage is up to date and adequately protects your property.
Wrap-Up
Leaving a home vacant for 60 days or more can expose it to various risks, and standard homeowners insurance policies typically exclude coverage for many types of damage that can occur in vacant properties. By understanding the implications of leaving your home vacant and taking proactive steps to protect your property, you can minimize the risks and ensure you have the necessary coverage.
If you anticipate that your home will be vacant, consider purchasing vacant home insurance or an endorsement, and maintain the property to prevent damage. If you have any questions about your coverage or need to explore additional insurance options, contact your insurance agent for guidance.