Vacant Home Insurance

Vacant homes are typically insured on an Actual Cash Value (ACV) basis — the cost to replace the damaged property minus depreciation. Depreciation is determined by factors such as age, condition before the loss, resale value, life expectancy, and obsolescence. Keeping records of any updates or improvements can help reduce the amount of depreciation applied during a claim.

Vacant home policies are usually written on a Named Perils form, meaning the policy covers only the specific perils listed — commonly fire, lightning, windstorm, hail, and other limited causes of loss. It is very important to know that Named Perils policies do not cover water damage. This differs from the “all risk” approach found on many standard homeowners policies. Both types of policies contain additional exclusions that owners should be aware of.

Policies for vacant homes often include conditions that must be followed to keep coverage in force. These may include:

• Regular property checks within a specified number of hours
• Maintaining heat during the heating season or properly winterizing the plumbing
• Keeping the premises clean and free of debris
• Ensuring all doors and windows are securely locked

These requirements are critical, and failure to follow them may affect coverage in the event of a claim

Usually Yes. Most insurers require heat to be maintained or the plumbing fully winterized. Not following these requirements may void coverage. Always check with your specific insurance company what the requirements are.

Typically no. Most vacant policies exclude all forms of water damage unless specifically endorsed.

Different insurers allow different vacancy periods — usually 30, 60, 90, or 180 days. Longer periods may require special underwriting approval. Always check with your specific insurance company. Most companies do not insure houses which have been vacant for 2 years or more.

Often no. Many vacant home policies exclude vandalism or restrict it unless certain protections are in place.

Insurance companies often have specific requirements for homes insured as a primary residence, even when they are left unoccupied for short periods. Depending on the season and your policy, you may need to maintain heat, shut off the water, or arrange regular checks of the property. If you plan to be away, even briefly, contact your insurance company to confirm your obligations and ensure coverage remains in force.

Visiting the property every few days does not change its status for insurance purposes. If no one is actually living there, insurers still consider the home vacant or unoccupied, and the policy requirements must be followed. Many claims are denied because owners believe occasional check-ins are enough, but insurers determine vacancy based on occupancy, not visits. Always confirm with your insurance company to ensure you have the correct policy type and the proper permissions in place.

Moving a few personal items into the property does not make it your residence in the eyes of the insurer. Occupancy is based on where you are actually living, not whether some furniture or boxes are inside the house. Claims are frequently denied when owners try to classify a vacant property as occupied by placing items inside, only for the insurer to determine the home was not truly lived in. To avoid coverage issues, make sure the policy reflects the actual occupancy status of the home.