We know what you’re going to say, “But it’s only for a little bit!” “Our friends didn’t have to deal with this, why do we?” These responses are something we hear constantly. But, when we are talking about extended repairs or changes in a home, this is something you must account for. Most homeowners’ policies give you 30 days to be living in the home. Many carriers are now sending their inspectors out within two to three weeks to see the shape the home is in, but also that the owners are moved in.
A vacant dwelling policy is issued when a home is unoccupied by an owner or tenant. They are often more expensive, but for good reasons. When your home is unoccupied, there is more risk that something goes wrong that does not get taken care of right away. If you have a standard homeowner’s policy and are undergoing lots of renovations, and something happens, there is a large possibility that your claim will be denied because you were not insured properly. There are several other ways that a home could qualify as unoccupied, two of the main ones being if the owner passes away and the home is now in their estate. The policy needs to be changed if it is going to stay vacant for over 60 days. The same goes for homeowners that are selling their home and have moved out already.
Our rule of thumb: If you do not reside in the home for more than 30 days, you need a vacant dwelling policy (and we can help!) The last thing you need while trying to handle a home, is your insurance cancelling because you aren’t living there, or worse yet, they could deny a claim. The home insurance market is tough, with most carriers avoiding risk as much as they can. We want you to have the best coverage and not get stuck with a higher premium because your previous policy was cancelled.
Occupancy is one of the first questions the carriers ask us as agents, and if you as the client do not make us aware of the situation then we have no way to help you get the correct protection. When you are purchasing your home, please be transparent with your agent so they can prepare the most comprehensive insurance for your needs.
