Have you ever listed a home for sale and vacated it before finding a new buyer? According to the Wall Street Journal and the National Association of Realtors, approximately 4.65 million existing homes were sold in 2012. Of those, many homeowners moved out of their properties prior to selling them, whether due to a job relocation, a short sale, or the purchase of another home. Many continue to pay their homeowners insurance company to protect their properties until closing. Those who manage to sell an unoccupied home without filing an insurance claim, however, should consider themselves lucky. Far too many homeowners file claims for vandalism, theft or other losses on uninhabited dwelling each year only to find their claims are denied.
Many homeowners erroneously believe their existing policies will provide coverage for a vacant property. The truth is, most insurance companies exclude or reduce coverage for unoccupied homes that are not covered by vacant home insurance. If you currently own a vacant property or plan to sell an unoccupied home in the future, click here to continue reading and find out more about your coverage options.
Property Insurance for Vacant or Unoccupied Homes
Homeowners insurance typically halts coverage for a home that has been vacant for a period of 30 to 60 days. If you wait to move out of a home until it is under contract with a buyer, chances are your coverage will be effective until closing. However, moving out prior to selling a property may leave you without protection for important perils, such as theft, vandalism, broken glass or burst pipes. It is important to either obtain an endorsement for vacant home coverage on your existing policy or otherwise purchase a vacant home insurance policy specifically designed to protect your empty property for the amount of time you anticipate it will be empty.
Liability Insurance for an Unoccupied or Vacant Home
Your vacant property insurance should include coverage for liability – especially for a home listed for sale. Liability insurance may not seem important if you are not receiving deliveries at an empty home or hosting gatherings for friends and family. However, it is possible to be sued for injuries sustained on a property you own even if the incident was no fault of your own. For example, a vacant home might catch the eyes of neighborhood children who hop over your fence to play in the backyard. If one is injured, and the parents file a lawsuit, liability insurance helps foot the bill for legal fees, judgments and settlements. Similarly, a potential buyer could easily slip and fall in your home during an open house, leaving you legally responsible.
Get a Vacant Home Insurance Quote Today
If you plan to list your house for sale, do not wait to get the coverage you need. Contact our office to speak with one of our helpful agents about homeowners insurance for vacant properties. We will be happy to review your existing policy for coverage gaps and assist you in finding the policy that fits your needs. Call today to request your free quote. We look forward to serving you soon.
