Insurance companies can drop your insurance coverage, at any time. In most cases, you will be provided with a reason, but this is not required. Companies often drop coverage in areas that have become high risk or when the policyholder has made a large number of claims. An unoccupied property presents a valid reason for a company to drop your policy.

The insurance company’s reasoning

Each company will determine a definition of a vacant home. Most companies do have a grace period and insurers often use a 60 to 90 status to determine occupancy. Unoccupied properties present a considerable amount of risk to an insurance company.

Vacant homes are more subject to vandalism and other damages. If a fire of flood were to occur, it may take longer for the problem to be noticed, increasing the amount of damage. When a property is for dale, liability risks can also increase. People will be touring your home and any injuries will be your responsibility.

What you need to do

You do need to maintain homeowners insurance while your home is on the market. If your hold a mortgage, this is required. Even without a mortgage, you could risk losing all of your equity. Your current company may offer you a different policy, but it will likely be more expensive.

You may need to change insurance providers and you should get comparative quotes to ensure you are getting the best rate. If the rates are extremely high, you might be able to raise your deductible to lower the premium.

Keep in mind that a home can be considered vacant if it is unoccupied for over the 60 to 90 mark. If you only use the property seasonally, you should have a specific policy to cover your property. Get in touch with us so we can help you compare quotes from several insurance providers.