How much is insurance on an empty house? This is a common question among homeowners who are either considering selling their property or are temporarily living elsewhere. The cost of insuring an empty house can vary widely depending on several factors, including the location, the age of the property, and the type of coverage you choose. Understanding these factors can help you make an informed decision when it comes to insuring your unoccupied home.
Firstly, it’s important to note that insurance companies typically charge more to cover an empty house than a house that is occupied. This is because an unoccupied property is considered to be at a higher risk for theft, vandalism, and other damages. According to a report by the Insurance Information Institute, the average cost of insurance for an empty house can range from $1,200 to $2,000 per year, which is significantly higher than the $300 to $500 annual cost for an occupied home.
One of the key factors that influence the cost of insurance on an empty house is its location. Properties in high-crime areas or those prone to natural disasters such as floods or earthquakes will likely have higher insurance premiums. Additionally, the age of the house also plays a role. Older homes may require more maintenance and repairs, which can increase the insurance cost.
When insuring an empty house, it’s essential to choose the right type of coverage. Standard homeowners insurance policies typically exclude coverage for unoccupied properties. Instead, you’ll need to purchase a specialized policy, such as an unoccupied property insurance or vacant property insurance. These policies may offer protection against a range of risks, including theft, vandalism, and water damage. The cost of these policies can vary, but they are generally more expensive than standard homeowners insurance.
Another factor that can affect the cost of insurance on an empty house is the length of time it will be unoccupied. If you plan to leave your property unoccupied for an extended period, you may need to purchase a longer-term policy. Some insurance companies may offer discounts for homes that are unoccupied for shorter periods, so it’s worth comparing different options to find the best deal.
In conclusion, the cost of insurance on an empty house can vary significantly based on several factors. To ensure you’re adequately protected, it’s crucial to choose the right type of coverage and consider the location, age, and duration of unoccupation. By doing so, you can find a balance between protecting your investment and managing your insurance costs.
