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From a business point of view, vacant home insurance is one of the most misunderstood gaps in coverage for residential real estate. The system is meant to protect homes that are lived in, where residents can quickly fix problems. But when homes are empty, the risk profile changes a lot.
The Insurance Information Institute says that homeowners insurance rates went up 11.4% in 2024 alone, and the national average for standard policies was $2,801 per year. LendingTree's 2025 study backs this up by showing that rates have gone up by 40.4% over six years. These base costs go up by 1.5 to 1.6 times for properties that are empty, which means that annual premiums go up to more than $4,200 in many markets.
Here's how the process really works when your house is empty. Most standard homeowners insurance policies have vacancy clauses that automatically lower or end coverage after a certain amount of time. Insurance companies put these limits in place because empty properties tend to have more and worse claims across a wide range of risk categories.
According to the Insurance Information Institute, insurers paid out more in claims than they made in premiums in seven states in 2023. This made it necessary to do more accurate risk assessments. When homes are empty, it can take minutes, days, or even weeks to respond to emergencies, turning small problems into huge losses.
The difference between vacant and unoccupied properties has an impact on both the availability of coverage and the calculation of premiums. Insurance companies use these terms in a very specific way because the risk profiles are very different. If homeowners don't understand these definitions, their claims may be denied even if they think they have enough coverage.
A house that is empty has no furniture, personal items, or signs of people living there. Most of the time, these properties are being fixed up, are for sale without furniture, or are left empty between ownership changes. From a business point of view, empty properties are riskier because they don't have any contents, which means that no one is keeping an eye on them regularly. Insurance adjusters who look at claims for vacant property look for certain signs, such as empty rooms shown in photos taken during inspections, meter readings showing that utilities are not connected, mail that has built up showing that no one visits regularly, and landscaping that has grown too much in claims paperwork.
The National Association of Insurance Commissioners says that figuring out whether a property is vacant can often lead to arguments during the claims process. A homeowner might think their property is "temporarily empty," but the insurance company's policy language says it is "vacant" because there are no furnishings, no matter what the owner plans to do with it. These disagreements over definitions lead to thousands of denied claims every year, and homeowners only find out about coverage gaps after they have already lost a lot of money.
An unoccupied home has furniture and utilities and looks ready for people to move in, but no one lives there for long periods of time. This includes vacation homes that are only used during certain times of the year, homes where residents move temporarily for work, and homes where owners travel a lot for work. These properties have lower risk profiles because they have furniture and working utilities, which shows that they are being maintained and watched over. Insurance companies see bedroom furniture, kitchen appliances, connected utilities, personal items in closets, and regular mail delivery as signs that someone is keeping an eye on the property even when the owner is away for a long time.
Think of real-life examples that show these differences. A family buys a new house before selling their old one. They take all the furniture to the new house, leaving the old one empty while it's for sale. Even though the owner visits the property every week for showings, the insurance company says the home is empty. If a pipe breaks during this time, the standard homeowners policy's vacancy clause probably won't cover it.
A couple who owns a ski condo, on the other hand, only uses it in the winter. They leave it fully furnished and with utilities connected all year. They come every three months to do maintenance, even in the off-season. This property is unoccupied, not vacant, which means that standard policies will cover it more broadly or that it only needs an unoccupied endorsement instead of specialized vacant home insurance.
When you tell your insurance company about an upcoming vacancy, they ask you a series of questions to figure out which category applies. This is how the workflow works. They'll want to know if there is still furniture in the house, if the utilities are still on, how often you'll visit, if the house is for sale or rent, what security measures are in place, and how long you think the vacancy will last. They decide what coverage options are best based on these answers.
If you plan to keep your furniture and utilities connected in your home, you might be able to get an unoccupied endorsement for less than full vacant home coverage. These endorsements usually raise your standard premium by 15% to 30% and may require you to have regular property inspections, keep your utilities running, and let the insurance company know if anything changes. If the property will be completely empty, you need vacant home insurance, which costs 50% to 60% more than regular home insurance.
Bankrate's December 2025 report says that the average homeowners insurance premium for $300,000 in dwelling coverage varies a lot from state to state. Oklahoma City has an average annual income of $5,554, while Portland, Oregon has an average annual income of only $1,051. When figuring out vacant home premiums, these differences in location get even bigger because insurers add percentage increases to baseline rates that are already different. A 50% vacant home surcharge on Oklahoma City's base rate of $5,554 brings in $8,331 a year, while the same percentage increase on Portland's base rate of $1,051 only brings in $1,577 a year.
Local building costs that affect rebuilding costs, weather patterns that determine the risk of wind and hail, crime statistics that affect the likelihood of theft and vandalism, and how close fire departments are to the area all affect these changes. When properties are empty, they have to pay the most in premiums if they are in areas with high construction costs, bad weather, high crime rates, and few emergency services, because all of these risk factors work together.
Vacant home policies work like regular homeowners insurance, but they usually have stricter terms and higher deductibles. You can better judge whether a policy protects your investment well by knowing these coverage details.
Most of the time, vacant home policies protect against fire and smoke damage. This coverage pays for damage from wildfires, lightning strikes, and electrical fires. The Insurance Information Institute's data shows that fire claims are very costly, and that vacant properties often go undetected for a long time, which leads to total losses instead of just partial damage.
Coverage for vandalism and theft protects you from break-ins, stolen items, and damage to your property when someone enters without permission. Here's what the numbers really mean: properties that are marked as vacant are much more likely to be the target of crime. Security system companies say that homes that clearly show signs of being empty are three times more likely to be broken into than homes that are occupied.
Wind, hail, lightning, and storm damage are all covered by weather-related damage coverage. According to Matic's 2025 Home Insurance Trends Report, climate events caused big increases in premiums in many states. For example, from 2019 to 2024, Colorado saw a 76.6% increase in rates. Policies for empty homes in areas with a lot of bad weather cost even more because they are left empty for longer periods of time without any residents taking care of them.
Liability insurance protects property owners if someone gets hurt on their property. This coverage is very important for empty homes because people who aren't supposed to be there, like trespassers, utility workers, or real estate agents, could enter the property. According to the National Safety Council, 35.2 million Americans suffered unintentional home injuries that required medical attention in 2023. Of these injuries, 125,700 people died.
Water damage coverage is the hardest part of vacant home policies to understand. Many insurance companies won't cover or will only cover a small amount of water damage to vacant properties because frozen pipes and slow leaks can cause huge damage that goes unnoticed. Some policies cover sudden water damage from storms but not damage from slow leaks or frozen pipes. This difference means that policies need to be looked over very carefully.
The cost structure for vacant home insurance takes into account a number of risk factors that insurers calculate using actuarial analysis. If you know how these pricing systems work, you can plan your budget better and find ways to lower your costs.
Policygenius experts say that vacant home insurance costs 25% to 50% more than regular policies, and in many cases, it costs more than that. If you take the current national average of $2,801 for standard homeowners insurance and add this amount, you get vacant home premiums that range from $3,501 to $4,202 a year.
Costs are greatly affected by differences between regions. Copeland Insurance gives specific examples from different states: In Washington state, the average cost of a standard policy is between $1,016 and $1,300 per year. The cost of coverage for an empty home is between $1,524 and $1,950. In Alabama, standard premiums are between $2,198 and $2,244, and vacant coverage is between $3,297 and $3,366.
These increases are based on how things really work. Insurance companies use data on past claims to figure out how much they expect to lose on each claim. Claims are more common and more serious for empty properties. A broken pipe in a home with people living in it could do $5,000 worth of damage before anyone notices. In a vacant property, the same burst pipe could go undetected for weeks, causing $50,000 or more in structural damage, mold removal, and the complete loss of systems.
Factors that are specific to a location make base premium calculations more complicated. Properties in areas with a lot of crime have to pay extra fees. The FBI's Uniform Crime Reporting program gives detailed crime statistics by area that insurance companies use to figure out how to rate policies. Properties in areas that are likely to have wildfires, like California, or hurricanes, like the Gulf Coast, will see big jumps in their premiums.
The age and condition of a property have a direct effect on its price. Many homes built before 1980 don't have modern fire suppression systems, updated electrical panels, or plumbing materials that are up to date. Insurance companies think that older homes are more likely to have problems because parts break down more often. If a home has a roof that is 25 years old, plumbing that is original, and electrical systems that are out of date, it might cost 30% to 40% more to insure when it is empty than a similar new construction property.
The length of the vacancy affects the cost and availability of policies. If a property has been empty for 3 to 6 months, it is eligible for more coverage options at lower relative premiums than if it has been empty for 12 to 24 months. Longer vacancies mean a higher risk of abandonment and more exposure to damage, which raises premiums or makes it harder to get coverage.
One of the few ways to cut costs is to put security measures in place. Properties with monitored alarm systems, motion-activated lighting, security cameras, and smart home water leak detection systems may be able to get premium discounts of 10% to 20%. These systems let insurers know about problems faster, which makes claims less serious on average.
There is a big difference between the risk of an empty property and the risk of a standard homeowners insurance policy. This means that property owners are at a lot of financial risk. These specific risk scenarios show why specialized coverage is important and how small coverage gaps can lead to huge financial losses.
Vacant properties are more likely to be vandalized and stolen from for a number of reasons. When you take into account stolen HVAC systems, copper piping, appliances, and fixtures, the National Equipment Register says that theft from empty properties costs an average of more than $25,000. According to data from the restoration industry, vandalism damage adds another layer. Graffiti removal, broken windows, and intentional property damage cost an average of $10,000 to $15,000 per incident.
Professional thieves go after empty homes because they can take their time and take everything valuable. A typical home HVAC system has copper parts that are worth $2,000 to $3,000 in scrap value, but it costs $8,000 to $15,000 to replace them, including installation. Copper pipes in a house might be worth $500 in scrap, but it would cost $12,000 to $20,000 to replace them all. The effects of theft go beyond just the cost of replacing what was stolen. When plumbing is removed, it can cause water damage that leads to other losses. Broken windows let in weather that hurts the finishes inside. When secondary damage factors add up, a $3,000 copper theft can turn into a total loss of $40,000.
When a fire damages an empty building, the owner usually has to pay for the whole thing instead of just part of it. According to the National Fire Protection Association, residential structure fires caused $9.3 billion in property damage in recent years. Vacant properties made up a larger share of total loss claims than other types of properties. Residents can't see fires in vacant properties right away, so they can burn unchecked until neighbors notice or passing cars report flames. A fire in a home with people in it could cost $30,000 to put out, but in a vacant property, it could cost $200,000 because the fire spreads through the whole building before anyone sees it.
Water damage is the most common type of claim for empty properties, and the losses are often greater than those from fire and theft combined. The Insurance Institute for Business & Home Safety says that water damage claims make up one-third of all homeowners insurance claims. This number goes up a lot for empty homes. Pipes that freeze, slow leaks, roofs that let water in, and broken water heaters all cause damage that builds up over weeks or months without anyone noticing.
A real-life example of water damage shows how bad things can get: For three nights in a row, the temperature at a vacant property for sale drops below freezing. On the first night, a pipe in an outside wall freezes and breaks. The pipe breaks all the way on the third night. For the next four days, water flows at a rate of about 10 gallons per minute until the listing agent shows up for a scheduled showing. At this point, the property has been flooded with 57,600 gallons of water.
The damage includes drywall that is completely soaked through two floors and needs to be taken down and replaced, hardwood floors that have cupped and warped beyond repair over 1,800 square feet, ceilings that have collapsed in several rooms because of the weight of the water, an electrical system that needs to be fully inspected and partially replaced, and mold growth that started within 48 hours and needs professional cleaning. The total loss is more than $125,000 because of a burst pipe that would have caused about $3,000 in damage if it had been found within hours in a home that was occupied.
Liability exposure goes beyond property damage to include personal injury claims that can ruin homeowners financially. People who get hurt while trespassing on empty properties can file premises liability claims against the owners of those properties using a number of different legal theories. A trespasser who falls through a rotted deck, gets hurt by exposed wiring, or gets burned by a broken furnace may be able to sue the property owner for not keeping the area safe. Even if the owners win in the end, legal defense costs can be more than $50,000, and bad judgments can cost hundreds of thousands of dollars.
Think about a full situation: a homeowner puts their furnished home up for sale while moving for a new job. They tell their insurance company about the listing, but they don't talk about vacant coverage in detail. The house doesn't sell for 90 days. During this time, a problem with the heating system causes several pipes to freeze and break. The listing agent doesn't find the damage until a scheduled showing, when water has been running for days. The claim for structural drying, flooring replacement, drywall repair, mold removal, and HVAC repairs comes to $85,000. The insurance company denies the claim because the policy has a 60-day vacancy clause. The homeowner has to deal with the full $85,000 loss personally, as well as ongoing mortgage payments on a property that is now damaged and can't be sold.
Getting vacant home insurance is a structured process that matches homes with the right coverage. Knowing what each step means will help you get through the system quickly.
The first step is to figure out what you really need. If you plan to visit your property often and it will stay furnished with utilities connected, an unoccupied endorsement on your current policy may be enough. If the property will be completely empty, you need vacant home insurance. The length of time the property is vacant, the contents of the property, the status of the utilities, and the frequency of visits are all important factors.
Step two says you should first get in touch with your current insurance company. A lot of insurance companies offer vacant property endorsements or easy ways for current customers to switch from standard policies to vacant coverage. This method is often cheaper and easier for the insurer to underwrite because they already have your claim history and property details.
When you first get in touch, ask for specific information about the coverage. Find out what kinds of risks the policy covers, if water damage includes frozen pipes and slow leaks, what the policy's liability limits are, if short-term occupancy is allowed without notice, and what the deductibles are. Also, ask about the policy term options. Some companies offer terms of three, six, or twelve months. In step three, you get quotes from several different providers to compare. Your current insurance company might be convenient, but the premiums for the same coverage can vary by more than 30% between companies. According to Farmer Brown Insurance, location, property type, and individual underwriting methods all play a big role in how much rates differ. Get at least three quotes that cover the same amount of property, liability limits, and deductible structures.
USAA, Farmers, Progressive, and State Farm are all national companies that write vacant home policies. However, the coverage and prices vary by area. Foremost focuses on properties that aren't standard, like empty homes. American Modern Insurance Group only deals with empty and seasonal properties. Regional carriers often offer competitive options and know a lot about the risks that are specific to the area.
Step four calls for putting together the necessary paperwork. Most of the time, insurers want to know the property's address and legal description, the most recent property appraisal or tax assessment, the property's age and condition, the roof's age and condition, proof of any previous losses or claims, how long the property will be vacant, plans for property maintenance, security measures in place, and whether the property is for sale or renovation.
Step five is to carefully read the terms of the policy before buying it. Check that the coverage limits match the value of the property, find out which risks the policy covers and which it doesn't, know the deductible amounts and how they work, check the liability coverage limits, read the additional living expense provisions if they are included, check for any occupancy restrictions or visiting requirements, know how to file a claim and when to do it, and check the policy term length and renewal provisions.
Step six is about paying and turning on the service. Most policies for empty homes require you to pay the premium up front every year. This way of paying protects insurance companies from adverse selection, which is when property owners might cancel right after making a claim. Policies usually have prorated refund clauses that let you cancel and get your unused premium back once the property sells or is occupied.
Policies for vacant homes have different types of coverage and optional endorsements. Knowing these things will help you set up the right protection.
Dwelling coverage protects the building itself, including the walls, roof, foundation, and any fixtures that are permanently attached to it. Depending on the terms of the policy, this coverage will pay either the replacement cost or the actual cash value. Replacement cost gives you money to rebuild at today's construction costs without taking into account depreciation. Actual cash value pays the cost of replacing something minus depreciation. This can leave big gaps in coverage for older buildings.
Coverage for other structures protects things like detached garages, sheds, fences, and other buildings on the property. Most standard policies offer this coverage at 10% of the dwelling coverage limits. However, vacant property policies may lower this percentage or leave out certain types of structures.
Personal property coverage is hard to get for homes that are empty. If the property is really empty, personal property coverage may not apply or may only cover a small amount of property maintenance equipment, like lawn mowers that are kept on the property. If the property has furniture in it even though it is empty, personal property coverage requires that the furniture be included with declared values.
Liability insurance protects property owners from claims made by other people for injuries or damage to their property. Even empty buildings can be held liable for injuries caused by trespassers, delivery people, real estate agents, and maintenance workers. Minimum liability limits of $300,000 give you some protection, but limits of $500,000 to $1,000,000 give you more protection because they cover higher amounts of damages.
Medical payments coverage pays for injuries that happen on the property, no matter who is at fault, up to $1,000 to $5,000. This coverage helps settle small injuries without having to file a formal claim. If damage forces you to leave your home, loss of use coverage will pay for extra living costs. This coverage usually doesn't apply to empty homes because no one lives there. Some policies do cover limited loss of use if you are actively renovating a property you plan to live in, though.
For empty homes, you can get extra endorsements like coverage for equipment breakdowns in heating, cooling, and electrical systems, sewer and drain backups, building code upgrades for older homes, and higher limits for certain high-value items.
Even though vacant home insurance is more expensive than regular policies, there are ways to lower premiums while still getting good coverage. Using these methods consistently can cut yearly costs by 20% to 35% compared to the average premiums for empty homes.
Putting in a security system gives you immediate premium benefits and is the best way to spend money to lower your risk. Insurers see less risk when monitored alarm systems send alerts to central stations about break-ins, fires, or water leaks because they can respond to emergencies faster. Smart home systems that let you monitor your home from afar, automatically turn off the water, and measure the temperature are even safer.
The system is set up to give discounts based on how many security measures you take. Most of the time, basic burglar alarms can get a discount of 5% to 10%. Adding fire monitoring raises discounts to 10% to 15%. Adding water leak detection systems raises discounts to 15% to 20%. The most advanced systems that can monitor all types of things, control the temperature from afar, and turn off the water automatically can save you 20% to 25% on your premiums.
The cost of installation can be very different, but it usually pays for itself in two to four years through savings on insurance. A basic monitored alarm system costs between $200 and $500 for the equipment and between $25 and $50 a month to have it monitored. Installing smart home water leak detection systems costs between $300 and $800. The total cost of full systems is between $2,000 and $4,000, but the policy period will see a positive cash flow because the policyholder will save $500 to $1,000 on insurance each year.
Regular property inspections and maintenance lower the number of claims by finding problems early. Insurance companies value documented inspection schedules with photographic evidence because they provide proof that the property is being watched. Weekly or biweekly inspections cut down on risk by a lot because most problems get worse in a matter of days or weeks.
Checking for leaks in plumbing fixtures and pipes, testing HVAC systems, looking for damage on roofs, checking windows and doors for security, checking electrical panels, keeping an eye on temperature and humidity levels, and looking for water intrusion are all parts of a good inspection. This methodical method takes 30 to 45 minutes for each inspection, but it can save you tens of thousands of dollars in losses. Some insurance companies will give you a 5% to 15% discount on your premium if you have proof that your property is inspected every week.
Keeping your yard looking nice helps reduce risk in a number of ways. Landscaping that is well-kept lets potential vandals and thieves know that someone is home, which makes them less likely to target that property. Anyone driving by can tell right away that a property is empty if the lawn is overgrown. Lawn care that happens every month costs $100 to $200, but it keeps your yard from looking empty, which draws criminals.
When possible, lowering the length of time a property is vacant lowers premiums in a number of ways. It costs a lot less to insure a property that has been empty for 90 days than one that has been empty for 180 days or more. If you're selling, think about strategic staging that changes the property from vacant to unoccupied. This can lower premiums by 20% to 30%. Renting furniture for staging costs $500 to $1,500 a month, but it can lower your insurance premiums by $200 to $500 a month and maybe even speed up sales.
If you're remodeling, keep some people living there if it's safe to do so by doing the work in stages that let people stay. If you live on-site during renovations, you can keep your full standard homeowners coverage instead of having to get vacant property or builder's risk policies.
Higher deductibles lower premiums by a lot for all types of insurance. Most of the time, raising your deductible from $1,000 to $2,500 will lower your annual premiums by 15% to 20%. If you raise your deductible to $5,000, your premiums could go down by 20% to 25%. Increasing the deductible to $5,000 on a property with a $4,200 annual vacant home premium saves about $840 to $1,050 each year.
When you bundle policies with the same insurer, you can get multi-policy discounts because the insurer has lower administrative costs and wants to keep customers. If you have auto insurance, an umbrella policy, or insurance on other properties, you can usually save 5% to 15% on all of your policies by combining them with one company. For vacant home insurance with a $4,200 yearly premium and $1,800 yearly auto insurance, a 10% multi-policy discount saves $600 a year.
When property status changes are likely, thinking about short-term policy periods can help you avoid paying for coverage you don't need. Three- or six-month policies keep you from having to pay for full annual coverage that you won't use if your property is going to sell or be rented out in a certain amount of time. A three-month policy that costs $1,050 covers you during times of high risk without requiring you to pay $4,200 in unnecessary annual premiums.
Making your property better before buying insurance can lower your premiums by showing underwriters that you are less likely to make a claim. Updating old roofs, modernizing electrical systems, and replacing old plumbing all show that the risk is lower. These changes cost money up front, but they lower insurance costs and raise the value of the property at the same time.
The age of the roof has a big effect on the cost of insurance for empty homes. The 2025 Home Insurance Trends Report from Matic says that the difference in premiums between homes with roofs that are less than 5 years old and roofs that are 11 to 15 years old grew from $49 in 2022 to $155 in 2025. If you have a vacant property, replacing the roof before getting coverage can save you $200 to $400 a year in premiums.
Even though it costs a lot more than regular homeowners insurance, property owners need vacant home insurance. This is because it keeps them from losing a lot of money. The average cost of insurance for a vacant home in the US will be $4,200 a year in 2026. If you plan ahead for this coverage, you won't have any money problems.
The difference between standard policy coverage and the real risk of vacant property can cost homeowners tens of thousands or even hundreds of thousands of dollars. When homes are empty for more than 30 to 60 days, which is when they are most at risk, standard homeowners insurance vacancy clauses take away or severely limit coverage.
Insurance companies set the price for empty homes based on how often and how badly claims happen for a number of different risks. You can find ways to lower your premiums while still getting the coverage you need if you know what affects prices.
The truth is that vacant home insurance is very important when you are changing properties. Specialized vacant coverage fills in the gaps that standard policies leave if you're selling a house, making repairs before someone moves in, taking care of an investment property between tenants, or settling an estate.
The first thing you should do is call your current insurance company and tell them what's going on. After that, you should get quotes from a number of companies, including some that deal with empty properties. You should also take steps to protect your property and read the policy terms carefully to make sure they offer enough protection before you sign up for coverage. These steps will help you keep your property safe while it's not being used.
If you need to leave your new home empty for a while, AmeriSave's lending experts can help you decide when to buy or refinance so that you have the right insurance coverage to keep costs and gaps to a minimum.
Most regular homeowners insurance policies have vacancy clauses that stop or limit coverage after the home has been empty for 30 to 60 days. The time limits vary by state law and insurance company, so read your policy carefully. Some policies stop covering you after 30 days and don't cover you at all after 60 days. Call your insurance agent right away if you plan to be away from home for more than 30 days to make sure you don't lose coverage.
There is no furniture, personal items, or signs that people live in vacant properties. People don't live in empty homes for long periods of time, but they do have furniture and working utilities. Insurance companies charge different amounts for these situations because the risks are different. Policies for homes that aren't being lived in usually cost 15% to 30% more than regular policies. Policies for empty homes are 50% to 60% more expensive. Putting furniture and utilities in empty homes shows that someone is keeping an eye on them and taking care of them, which lowers the risk.
Different policies and carriers offer different amounts of coverage. Many policies for empty homes don't cover water damage from frozen pipes, or they only cover it when the heat is on. Some insurance companies want the temperature to stay at a certain level, the property to be checked on regularly, or the whole water system to be winterized. Read the policy's exclusions carefully and ask about coverage for frozen pipes in particular. If not, you might want to winterize your plumbing by draining all the water lines and putting antifreeze in the drains.
Yes, most vacant home insurance policies have cancellation terms that are prorated. If you sell your house or move in, call your insurance company right away to cancel the policy and get back any premiums you didn't use. The refund is usually the part of your yearly premium that you didn't use, minus any cancellation fees that may apply. Keep proof of your occupancy date or the closing date of the sale to support your cancellation request. Get standard homeowners insurance from the company of your choice as soon as you move in.
Your lender will need you to keep insurance that meets their minimum standards if you still have a mortgage on the empty property. Most mortgage contracts say that the borrower must keep insurance on the property for the whole loan term, and the lender is the mortgagee on the policy. If you leave your property empty without telling your insurance company or getting the right coverage, you could be breaking your mortgage agreement. Before you leave your house empty, call your mortgage servicer and your insurance company to make sure you are following all the rules.
Homeowners insurance for empty homes costs 50% to 60% more than regular homeowners insurance. Several sources in the industry say that the average cost of standard homeowners insurance in the U.S. will be $2,801 in 2024. A vacant home policy costs between $4,200 and $4,500 a year on average. But the costs can be very different depending on where the property is, how old it is, how well it is kept up, how safe it is, and how long it has been empty. Properties in places with a lot of crime or that are likely to be hit by natural disasters see even bigger premium increases. To get the best price, ask several carriers for quotes.
If the property is still empty and you're not living there while the work is being done, you need vacant home insurance. Even if the home is occupied, many standard policies don't cover homes that are being heavily remodeled. If you're doing a big renovation, builder's risk insurance might be better because it covers the tools, materials, and work that is still going on. To find out what kind of coverage is best for you, talk to your insurance agent about how big your renovation is.
Some insurance companies offer vacant property endorsements, which add coverage to existing policies instead of requiring separate ones. These endorsements usually cost less than policies that don't cover anything because the costs of underwriting and administration are lower. Not all insurance companies offer endorsements, and those that do may not cover as much as policies that are specifically for vacant homes. Talk to your current insurance company about endorsement options before looking for separate coverage.
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