Why It Costs More To Insure Your House While Away, And Why You Should Keep Your Insurer In The Loop

Insurance Blog

When you request a homeowners' insurance quote for a vacant house and an occupied one, you are likely to get very different rates even if all other factors are constant. The unoccupied house will attract higher premiums compared to the occupied one. This is because vacant houses pose high risks to insurers. There are several reasons for this, and here are three examples:

Attractive Nuisance to Kids

First, vacant houses tend to attract children more than occupied houses. They may even jump over the fence to play in your pool, throw stones at the windows or just explore the place. This is dangerous on two levels. For one, the children may damage your property, and you may have to file a damage claim with your insurer. Secondly, the children may get hurt while playing on your property, and you will be held responsible for their injuries.

It's An Easy Target for Thieves

Secondly, vacant houses are easy targets for thieves since they don't have to worry about facing resistance from the house's occupants. Also, vandals are more likely to destroy vacant houses than occupied ones. You will expect your insurer to pay for these losses whenever they occur.

Both of these things translate to high risks for your insurer, so it's understandable they have high rates for vacant houses. What about if you insured your house when it was occupied, but it is now vacant? In this case, you need to inform your insurer, preferably before the house becomes vacant.

Consequences of Failure to Report, And How To Prevent Them

Your insurer may not settle your claim if you don't notify them and something happens in your absence. This doesn't mean you have to notify your insurance carrier every time you are away for a couple of days or so. Scrutinize your policy terms and conditions, or contact your insurance company or broker, to understand the length of vacancy that requires notification. Once you notify your insurer, there are two common routes you may use to ensure you are adequately covered. Here are the two routes:

• Buy an endorsement –Your insurer may offer you an endorsement to your existing policy. This involves paying extra, so the coverage is intact even while your house is vacant.
• Buy vacant house insurance – The other option is to buy vacant house insurance, which is specifically meant for unoccupied houses. Just like other insurance policies, its cost varies from insurer to insurer.

The need to keep your insurer in the loop whenever your house is unoccupied cannot be stressed enough. Therefore, if you are going to be away on a lengthy vacation or you are just vacating the house for renovations, make sure it is protected by upgrading your coverage. For more information, visit The Blondin Agency Inc - Nationwide Insurance.

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29 January 2016