An empty house is a bigger risk to insurers. Problems like leaks, fires and break-ins can go unnoticed. That's why vacant and rehab properties are some of the hardest to insure.
Why standard policies fall short
Standard homeowners and landlord policies often limit coverage once a property has been vacant for a set period — commonly 60 days. After that, claims such as vandalism or glass breakage may not be paid. Read your policy's vacancy clause before a property sits empty.
Your options
- Vacant dwelling policy: designed for homes that are temporarily empty.
- Renovation or builder's risk coverage: for properties under construction or major repair.
- Your state's FAIR Plan: some plans offer coverage here. The Ohio FAIR Plan, for example, offers rehabilitation coverage. Others, like Washington's, require the property to be occupied.
Buying a rehab or between tenants? Tell us about the property and we'll find the right fit.
Call (888) 928-9324Lower your risk while it's empty
- Lock all doors and windows, and add dead bolts
- Shut off the water or winterize the plumbing in cold months
- Visit regularly, and keep the lawn and walkways maintained
- Use timers on lights, and consider a monitored alarm
Tell your agent your plans
Let your agent know how long the property will be empty, what work you're doing and when tenants will move in. The right policy for a three-month rehab is different from one for a long-term vacancy.