Leaving a house vacant can increase its exposure to risk. Before you move out of your home, consider the insurance implications.

“When a home is vacant, theft, vandalism, fire and water damage are more likely to occur,” says Terry McConnell, vice president and manager, Personal Lines Underwriting at Erie Insurance. “Typically the damages are worse because no one is around to stop them or report it to the insurance company.”

It’s for that reason that many insurers discontinue coverage on a home that is not occupied for over 30 days. Some insurers grant a “vacancy permit” that allows the insured to continue coverage against things like fire and wind, but not against theft or water damage for example.

“If an ERIE Customer moves out and is trying to sell their home, after a period of time we will offer to rewrite the homeowners policy to a dwelling policy,” says McConnell. “We’ll typically provide coverage under the dwelling policy for up to one year.”

Homeowners vs. dwelling policy?

A homeowners policy provides a comprehensive package of coverages for the home, personal property and personal liability. This type of policy offers coverages and pricing that are suited for a home with an occupied owner.

A fire dwelling policy is suited more for rental properties, seasonal properties and vacant properties. Coverage for individual components such as dwelling, personal property and liability can be purchased at a higher price.

Rent?

In today’s housing market, many homeowners are renting their homes rather than taking losses on the properties or leaving them vacant. If you’re considering doing the same, you’ll want to invest in a landlord insurance policy. These policies cover:

• The house
• Other structures on the property such as a garage or shed
• Contents of the property such as appliances, furniture and tools
• Loss rental income
• Legal fees and liability protection

If you decide to go this route, take a few basic precautions such as:

• Require your tenants to show proof of renters insurance. Not only will they have coverage in the event of a loss, but it will provide the opportunity for subrogation should the tenant be responsible for the loss.
• Notify your agent or company representative and discuss the implications.
• Consider purchasing a personal umbrella policy (PCL) for additional liability protection.

For more information, contact our agency. We can help determine what option is best for you.