Vacant vs. Unoccupied
In property insurance, the term vacant refers to a building or home that is empty of its residents as well as all furnishings for 30 days or more. Unoccupied homes are absent of people, but is still furnished. The latter is typical of a secondary or seasonal home.
After 30 days of vacancy, claims for water damage, theft and vandalism are not covered by the primary policy. When the property becomes vacant for 60 days, all other coverage disappears completely. Some common reasons as to why a home becomes vacant are:
- Death of the insured
- Relocating to a nursing homes
- Seller moves out before closing
If you neglect to inform your agent that your home has become vacant, you leave yourself unprotected from the chance for loss or damage to the property. Essentially, you are continuing to pay the premiums of your homeowner policy to a home that is unprotected due to vacancy.
To ensure the property is protected even while vacant, consider purchasing a vacant home policy. Although coverage is strictly limited to a basic fire policy and liability coverage, additional protection can be added.
For more information on vacant homes or to review the terms of your policy, contact McGrath Insurance Group at 800-342-3859 or www.mcgrathinsurance.com.
*This article is written for informational purposes only and should not be construed as providing legal advice.