Unoccupied House Insurance – A Brief Overview

June 12, 2011

What is unoccupied house insurance?

People, in general, tend to neglect purchasing insurance for an empty or unoccupied house. In fact, as per insurance surveys, a large percentage of population in United Stated is not aware of availability of unoccupied house insurance. However, most of the insurance companies offer covers for houses that are not under occupancy. Although there is a slight difference between the covers available for occupied and unoccupied house, the basic terms of the policy like insurance against theft, vandalism and fire, remain the same.

Why does one need unoccupied house insurance?

Insurance for unoccupied houses is as important as is insurance for occupied houses. This insurance is handy when the owner shifts to a different place without selling the house. The insurance becomes all the more important if the house is furnished. However, there are certain regulations regarding the definition of an unoccupied house. As per insurance laws, a house can qualify for unoccupied home insurance only if it has been vacant for duration of more than thirty days. This insurance is very important if you take off on long holidays or business trips. It is necessary to cover your house if it is to remain empty for a prolonged period because empty houses are more prone to being burglarized or subjected to vandalism.

How can one get unoccupied house insurance?

Any insurance company will give you details and a quote regarding the insurance procedures for empty home insurance. You can also look up on the internet for more details. The general procedure, however, is to first obtaining an unoccupied house permit. The insurance company that covers for your house when it is under occupancy is eligible to grant you the permit. Once you get the permit, you can either buy the policy from the same insurer or look around for someone better. Your permit is valid to be used anywhere you like.

What to keep in mind while buying unoccupied house insurance?

The first thing you should keep in mind while purchasing empty house insurance is the cost. These policies are not cheap. In fact, they will cost you more than occupied house insurance, the reason being the heightened risk faced by unoccupied houses. You also need to check on the different covers that the company offers like fire, flooding, earthquake, storm and other risk factors.

What are the advantages of unoccupied house insurance?

The biggest advantage that you get by purchasing empty property insurance is peace of mind. You can take care of your business or enjoy your long holiday in peace when you know that your house is insured. Further, unoccupied houses are not covered under many normal house insurance policies. Insurance companies either require extra payment on your premiums if you leave your house unoccupied or refuse to cover for the house. In any case, unoccupied house insurance will see you through. A house is an investment and to safeguard it is a necessity, more so, when it is going to be left unoccupied for long periods.