Seasonal homes are common in New Hampshire and Vermont. Homes are often left unoccupied during the year because of travel, seasonal use, and potential planned and unplanned vacancies. If your home is vacant, unoccupied or a seasonal property, is it covered under your homeowner’s insurance? Learn the difference between standard, vacant, seasonal and unoccupied home insurance to know if you’re covered or not.
A standard homeowner’s policy doesn’t cover a dwelling that is vacant. It also doesn’t cover an unoccupied home for an extended period of time. This exclusion is normally specified in your policy details.
If you leave your New Hampshire or Vermont home unattended for 60 days your claim may be denied if something happens. For some policies, this period is only 30 days. The same also applies to apartments and condominiums. Without unoccupied condo insurance, your property might not be covered if empty for a policy-specific amount of time.
You should investigate vacant property insurance if you’re planning to travel for an extended period or are selling or renting your house.
The difference between vacant and unoccupied
There is a big difference between a vacant home and an unoccupied one. Your New Hampshire or Vermont home is considered vacant when it is empty. Meanwhile, an unoccupied home is one that is just missing its occupants.
The distinction is important if you are temporarily away from your home. This means you’re (or should be) covered by your policy. If you aren’t, then you might need a separate unoccupied home insurance policy.
To be considered unoccupied, no major pieces of furniture or appliances should be missing. You home must be a livable space. You should contact your insurance professional to verify this. They will probably recommend adding an unoccupied home insurance endorsement to your policy just to be safe.
It’s recommended that if major events impact the occupancy of your home consult with your agent. Make sure you have the right coverage in place for insuring an unoccupied home or a vacant one.
Construction versus renovation
Strangely enough, policies do not consider homes under construction to be vacant. You don’t need a special endorsement or a separate policy to ensure coverage during the time your home is being built. A standard homeowners policy will do.
Renovations (major ones, anyway) are entirely different because rooms are emptied and the inhabitants are away. As discussed earlier, this constitutes a vacancy. Make sure you notify your insurance professional so they can adjust your vacant property insurance coverage accordingly.
Who needs vacant home insurance?
You should talk to your insurance professional about vacant home insurance if:
- You’re buying, selling or renting your dwelling
- You must be away from your home for more than 30 days
- You’re moving out temporarily for major renovations
- You own a vacation home
You can cover a vacant home on your existing policy by adding an endorsement or purchasing a stand-alone policy. Since the risk of a fire or break-in is greater than in a regular home, you can expect to pay more for this policy.
Seasonal homes, like vacation properties, are subject to different rules than vacant and unoccupied properties. Your standard homeowners policy may cover a second home, but you should always check with your insurance professional to make sure your policy includes this seasonal home insurance coverage.
If not, then you may need secondary and seasonal home insurance to protect your property. Some seasonal homeowner insurance policies also provide coverage that extends to other structures on your property and their contents.
What is covered under vacant home insurance?
Most vacant home policies cover:
- Named perils like fires, lightning, wind, hail and explosions
- Glass breakage, vandalism and malicious mischief
- Liability
Theft of personal property on the premises may not be covered and water damage is often excluded. There are different levels of coverage, so be specific about your needs before settling on a policy.
Contact your insurance professional for more information about this coverage or to review your current policy.
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Copyright © 2022 Applied Systems, Inc. All rights reserved.
