Vacant exclusion policy automatically becomes active after a property has been vacant between thirty and sixty days. Without reporting the home vacant, the homeowner may be liable for insurance fraud. In many of these cases, if anything should happen in the home or property, the owner would be responsible for paying out of their own pocket. In other cases, the owner may be charged with neglect or even property abandonment.
To help cover the home in the case of vandalism or damage to a home once the owner has vacated the home, the owner may consider purchasing some form of vacant home insurance. This type of policy will cover various aspects of the vacant home that a regular addendum to a normal home owner insurance policy does not cover. Most owners use this type of policy if they are in the process of selling their home, renovation, construction, while away on an extended trip, an unexpected accident that leaves the homeowner not able to live in the home for a certain time or if the owner is in the process of securing renters for the home.
If a vacant property insurance is purchased, the longevity of the policy may vary between as little as two months to one year. The policy may also be renewed every year as needed. Some insurance companies also allow the homeowner to prorate the policy should they not need the extended time originally selected. This clause is something the owner needs to ask about before the policy is implemented. The costs of each specialized vacant building insurance will vary based on a number of factors. These factors may include: the area where the building or property is located, the surrounding businesses or neighborhood occupants, the condition of the property, the fencing to protect the property, the working emergency features in the home and the age of the building or home.
Vacant building insurance may be denied if any of the previous features mentioned make the home at a higher risk category than the insurance company is willing to take on. If that is the case, the owner should continue looking at other insurance companies until they find one that is willing to take the risk. Allowing a vacant house to sit without the proper insurance can cause the owner to become susceptible to many lawsuits. This may be the case of vagrants invading the home and getting hurt while there, squatters that may damage the property inside and outside which may cause home depreciation for the neighbors or endangering potential occupants when they visit the home by having a leaky roof, faucets or glass damage in the home.