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An empty house is a different risk, and a different policy

Almost every standard property policy contains a vacancy clause, and almost nobody reads it until they need it. It suspends important coverage once a home has been empty for a set period, commonly thirty to sixty days.

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Image800 × 600Product photo: vacant home

What this touches

  • The building while it is genuinely empty, on a form written for that
  • Vandalism and theft, which the vacancy clause is most likely to have suspended
  • Liability, which does not disappear because nobody is living there
  • Renovation exposure, where a builders risk form is often the better answer

What the vacancy clause actually does

It does not cancel the policy. It suspends specific perils, typically vandalism, glass breakage, water damage and theft, and it can reduce payment on others. The clock usually starts at thirty or sixty consecutive days, and it does not care why the house is empty: a probate, a slow sale, a renovation and a snowbird's summer all read the same to the form.

What moves the premium

  • Why it is vacant and for how long, since a renovation and a listed sale are different risks.
  • Whether utilities are on, and whether the water is shut off at the main.
  • Monitoring, boarding and who checks on it.
  • Whether work is being done, which may call for builders risk instead.

Turn the water off

The most common vacant-property claim in Florida is not vandalism, it is water: a supply line lets go and runs for three weeks. Shutting the main is free, it is the single most effective thing you can do, and some carriers require it.

If you are in one of these

Questions people actually ask

I inherited a house and it is in probate. What now?

Tell us before the sixty days run. This is one of the most common vacancy situations we see and there is a straightforward policy for it.

Work it out before anybody sells you anything

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