Vacant Homes & Home Insurance:

We’ve received numerous inquiries from realtors and financial advisors wondering how their clients should handle vacant homes sitting on the market. Whether it’s a property awaiting sale, a home under renovation, or an inherited house that’s temporarily unoccupied, understanding how insurance policies handle vacancy is crucial to avoiding unexpected coverage gaps.

What Does “Vacant” Mean in Insurance Terms?

Insurance companies have specific definitions of vacancy, and these definitions can significantly impact coverage. While policies vary, most Texas home insurance providers consider a home vacant if it has been unoccupied and unfurnished for 30 to 60 consecutive days. Some distinguish between:

• Vacant – No people, no furniture, and no clear intention of immediate occupancy.

• Unoccupied – The home remains furnished, and there’s an expectation that someone will return soon.

Why Does Vacancy Matter?

If your home is deemed vacant, insurers may reduce or exclude coverage for certain risks, including:

✔ Vandalism & theft
✔ Water damage from burst pipes
✔ Glass breakage
✔ Fire damage (in some cases)

These exclusions mean that if an incident occurs while the home is vacant, you could be left footing the bill for expensive repairs.

What Should Homeowners Do?

1. Check Your Insurance Policy

The first step is to review your policy document to see how your insurer defines vacancy and what exclusions apply. Each insurance company has different guidelines, so understanding your coverage is critical.

2. Consider Coverage Options

If your home will be vacant for an extended period, ask your insurer about available options. Some companies offer:

• Vacancy permits or endorsements that extend limited coverage.

• Vacant home insurance policies that provide broader protection.

💡 Caveat for Renovations: If major renovations are being done—such as structural work, roof replacement, or significant electrical or plumbing updates—a builder’s risk policy may be more appropriate than a standard homeowners or vacant home policy. This type of coverage protects against damage to materials, equipment, and even liability risks during construction.

3. Seek Professional Advice

Navigating vacancy-related coverage can be complicated. Working with a local insurance expert, realtor, or financial advisor can help you make informed decisions. They can guide you in securing proper coverage and protecting your property while it’s unoccupied or under renovation.

Key Takeaway

If you or your clients are dealing with a vacant home in Austin, don’t assume your standard homeowners policy will protect it. Check your policy, speak with your insurer, and consult a professional to ensure you’re fully covered. And if renovations are involved, explore whether a builder’s risk policy is the right fit for your situation.

Would you like personalized guidance on vacant home insurance? Contact us today to explore your options!