By Loretta L. Worters, Vice President, Media Relations, Triple-I
Vacant homes often carry more risk than meets the eye. From burst pipes and property theft to liability and squatter intrusion, a home left unoccupied for an extended period is exposed to a unique set of hazards, many of which may not be covered by a standard homeowners’ insurance policy.
Consider a recent case involving a homeowner who inherited a family property located several states away. With plans to sell the home, they left it unoccupied while it sat on the market through the winter months. After more than 60 days without a visit, the homeowner returned to find a devastating scene: a pipe had burst during a hard freeze, flooding much of the house.
Without anyone home to detect the issue, water had leaked for days — possibly weeks —causing severe damage to ceilings, walls, flooring, heating and electrical systems. The estimated cost of repairs exceeded $60,000.
Unfortunately, their standard homeowners insurance policy excluded coverage due to a vacancy clause, which had been triggered by the home’s unoccupied status.
Understanding Vacancy Clauses
Most homeowners insurance policies include a vacancy clause, which limits or excludes coverage if the property is unoccupied for typically 30 to 60 consecutive days. This is because vacant properties present heightened risks, including:
- Undetected water leaks or burst pipes;
- Increased likelihood of theft, vandalism, or trespassing;
- Greater exposure to fire damage or electrical deficiencies; and
- Liability if someone is injured on the property.
If a home will be vacant for an extended period, whether due to a sale, relocation, inheritance, or renovation, it’s essential to inform your insurance carrier and review your coverage options.
Water damage is one of the most common and expensive issues in unoccupied homes. Repairing damage from a burst pipe can cost $10,000 to $70,000 or more, depending on how long the issue goes unnoticed. In vacant homes, where regular checks are infrequent, leaks can continue for extended periods before detection, significantly increasing repair and remediation costs.
Vacant properties also are more susceptible to theft and unauthorized occupancy. Copper piping, appliances, and even fixtures can be attractive to criminals. Squatters present another challenge: in some jurisdictions, they can gain tenant rights if not removed promptly, leading to legal costs and delays.
Many standard policies exclude or limit coverage for theft and vandalism once a home is deemed vacant. This makes proper coverage even more important for homeowners who leave properties unoccupied, even temporarily.
Homeowners may be surprised to learn that liability exposure continues even when no one lives there. Injuries on vacant property can lead to significant financial losses.
Common examples include:
- A delivery person slips on an icy walkway and seeks damages;
- A contractor or realtor trips and is injured during a property showing; or
- A child enters the home and is hurt while exploring.
In such cases, the homeowner may be held liable, and, if the home is classified as vacant under the policy, liability coverage could be denied. Legal expenses and settlements can easily run into six figures.
Vacancy endorsements are available
To manage the elevated risks of a vacant property, insurers offer vacant home insurance policies or vacancy endorsements. These policies are designed to cover unoccupied properties and typically include:
- Water damage from plumbing or heating failures;
- Fire, lightning, windstorm, and hail damage;
- Theft, vandalism, and damage caused by trespassers; and
- Coverage for legal liability in the event of injury on the property.
While these policies tend to be more expensive than standard homeowners insurance, they provide critical protection.
Vacant home policies often still include protection for “sudden and accidental” events, such as a pipe bursting due to freezing temperatures. However, insurers typically require proof that reasonable steps were taken to maintain the property. Failing to heat the home during the winter, for example, could void coverage even under a vacant home policy.
Whether a home is vacant for weeks or months, the following steps can help reduce your exposure:
- Maintain indoor heat: Keep the thermostat at least 55°F during winter months.
- Shut off the water supply: Or fully winterize the plumbing system.
- Secure all entry points: Lock doors and windows; consider reinforced locks.
- Install remote monitoring systems: Leak detectors, thermostats, and cameras can provide early warnings.
- Schedule regular visits: Have a neighbor, family member, or property manager check the home weekly.
- Maintain walkways and lighting: Reduce the risk of slip-and-fall injuries with proper upkeep.
- Communicate with insurer: Always notify an insurer if the home will be unoccupied for an extended period.
Leaving a home unoccupied for months without adjusting your insurance coverage can expose you to significant financial risk. From costly repairs and legal liability to denied claims, the consequences can be catastrophic.
Before leaving a property vacant, whether due to sale, inheritance, or temporary relocation, homeowners should consult their insurance agent to identify the appropriate coverage. Obtaining a vacant home insurance policy or endorsement can protect both the property and the homeowner’s financial security.
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