Is my house covered if I’m not living there? Vacant home insurance, explained

You may have heard that if you leave your home empty for that long, your home insurance policy could be voided. Before you panic-call your insurer, let’s understand exactly what vacant home insurance is, what it covers and when you may need it. 

What is vacant home insurance?

Vacant home insurance protects a home that is vacant for more than 30 days. When no one is there to look after the property, there’s a higher risk of damage. This type of insurance is not a standard home owner policy—you may need to get additional coverage or a vacancy permit, depending on your insurer. 

What’s the difference between vacant and unoccupied? Don’t they mean the same thing?

Let’s define what a vacant vs. unoccupied home is when used in an insurance context, because insurance companies consider them different terms, and each insurer also has its own definitions.

An unoccupied home is one whose residents are temporarily away. Typically, home owners can leave their home unoccupied for up to 30 days (say, for an extended trip) with no need for added insurance. If you’re going to be away for longer, inform your insurance company. Some will allow you to go past 30 days without added coverage, if you have someone checking on the property for you, but others may require special coverage. Without it, the insurer could void your home insurance policy after the 30-day mark and deny any claims you make.

A vacant home is one that the home owner doesn’t intend to live in—for example, a home that’s waiting to be rented out or sold. In the meantime, there might be no furniture in it, and the utilities might be shut off. There’s a higher risk of damage to a vacant home. To ensure the property is protected, talk to your insurer about adding vacant home insurance or a vacancy permit to your policy.

When do you need vacant home insurance?

If your home is going to be empty for more than 30 days, you may need to get vacant home insurance. Common scenarios include: 

• You bought a home but aren’t moving in immediately
• You have a vacation home
• You’re doing renovations and aren’t living in the home during the process
• Medical treatment that will keep you out of your home for more than 30 days
• You’re travelling for more than 30 days
• You’re renting out your home, but you don’t have tenants and you aren’t living there

Does my regular policy include vacant home insurance?

Standard home insurance doesn’t include vacant home insurance. Regular policies cover a home with the assumption that someone is either living there or is checking on or maintaining the home on a regular basis. That’s why a policy can be voided for certain incidents, like water damage caused by a burst pipe. Homeowners can’t leave their home unattended for more than the number of days specified in their policy—which is sometimes as little as four days—otherwise they may lose their coverage. Read your policy’s fine print to see how often your home should be checked to maintain coverage.

How long can I be away from my home before I need vacant home insurance?

We’ll preface this by saying it does depend on your home insurance policy, but many insurers use the “30-day rule” to define what qualifies as unoccupied. That means you should let them know before you hit the 30-day mark of being away from home.

Do I need vacant home insurance if I’m going on vacation?

No, because your home is considered unoccupied, not vacant, since you’re planning on returning. You also don’t need to tell your home insurance provider. However, you should have someone check your home regularly because your home policy could be voided due to water damage. (See busted water pipes, above.)

If you can’t get someone to check your home every few days, then you might want to get vacant home insurance so you’re covered in case of damage. 

Do I need vacant home insurance if I’m renting my home to tenants?

If your home is empty for more than 30 days, then yes, you may need to get vacant home insurance. If you have tenants, then you’ll want to get landlord insurance. That provides liability coverage in case your tenant or their guests are injured on your property. It will also cover your possessions and damage to your property. If your tenant can no longer live there, landlord insurance will compensate you for lost income. 

You can also request that your tenants carry tenant insurance, which would cover their property if it’s damaged.

If I’m vacating my home for renovations, do I need vacant home insurance?

If you’re vacating your home for more than 30 days due to renovations, you may need to buy a vacancy policy. That’s because no one is in the home, and there is a higher risk of damage due to water, theft or vandalism. You can also get a vacancy permit, which provides some coverage while the home is empty; it costs about $100 per month. Keep in mind that, unlike vacant home insurance, it won’t cover damage due to vandalism.

If I come home within 30 days and then leave again, am I still covered?

Yes, but again, it depends on your policy. Remember the pipes? If your pipes burst and it turns out no one was checking the home, your home insurance policy coverage could be voided. That could happen after only four days, which is why it’s important to have someone check your home every few days. Arrange for them to check the heating and the pipes, and have someone shovel snow, maintain the lawn and pick up the mail. All of this will show that the home is unoccupied versus vacant. 

How much is vacant home insurance?

A regular home insurance policy usually includes: 

• Theft or damage to your personal items
• Damage, theft or loss to your home due to fire, etc.
• Injury to others while they’re in your home or on your property
• Personal property stolen from your vehicle

There are endorsements you can buy, such as sewage backup or overland flooding. Then there’s vacant home insurance. The average yearly cost of home insurance is $960, but vacant home insurance costs more than that, up to 50% to 60% more in fact, because of the added risk.

What about my cottage? When I’m not there, does it count as a vacant home, or is cottage insurance different?

Cottages are considered secondary homes with an expectation of extended vacancy, so they don’t fall under the vacancy definition. However, there is cottage insurance that will name the perils that will be covered, hence “named perils” versus comprehensive insurance. You can also get coverage by listing a cottage as a secondary home in your home insurance. To learn more about what’s covered by cottage insurance, check out our handy guide.

So, what should you do? Talk to your insurance company to understand their definitions and to see if you need to purchase vacant home insurance. At the very least, if you’re going on vacation or are going to be out of your home for more than a few days, have someone check on it regularly. Those pipes could be sneaky and just waiting for people to leave before they freeze up and burst.