Vacant Home Insurance - What to Look For in Vacant Home Insurance

Vacant home insurance is a specialty policy designed to cover a dwelling not occupied by the owner or any other person.

Vacant homes that are eligible for coverage usually include:

• Homes for sale
• Homes vacant for less than 24 months
• Homes in the name of an estate
• Homes under renovation

The traditional Homeowners policy EXCLUDES coverage for vacant homes. Don't be misled! If you had a homeowners policy on your dwelling and your dwelling is now vacant, you don't have coverage!

When shopping for vacant home coverage, look for the following coverages:

• Property Coverage - covers the dwelling and contents. If you are renovating, you may have tools or building materials in the dwelling. If you have a vacant rental home, it may contain furnishings. Don't forget to protect your contents.

• Liability Coverage - protects you in case you are legally liable for a covered injury or property damage to a person on your premises.

Loss Settlement

Four methods of loss settlement are customarily available to the policyholder. Choose the method that best suits your needs:

• Actual Cash Value (ACV) - standard method in all policies. Depreciation is assessed to property value to determine its present value at the time of loss.

• Replacement Cost Valuation (RCV) - just as you might think. Replaces damaged property with new property of like kind and quality.

• Agreed Loss Settlement - in the case of a covered total loss to the home, your settlement will be the amount of insurance listed on your Declarations Page, with no deductible on the coverage for your home, unless stated elsewhere in the policy.

• Extended Replacement Cost - for a covered total loss, if the cost to replace the home is more than the amount of insurance, up to an additional 25% of the amount of insurance on the home is available.

Flood Coverage

Vacant homes are not covered by Dwelling policies. However, vacant homes can qualify for Flood Insurance. To find out more, click here.

Discounts and Terms

Vacant home insurers also offer a variety of discounts, such as:

• Multi-Unit
• Multi-Policy
• Safety Course
• Prior Insurance
• Renewal discount for maintaining continuous coverage

You will also find a wide choice of deductibles and payment plans available. Choosing higher deductibles will lower your premiums. Flexible payment plans will help you manage your budget.