If a residence or place of business is expected to be unoccupied for over 60-90 days, it is considered to be vacant by your homeowner’s insurance company and most companies will cancel the policy at the next anniversary. Also your home insurance company may not cover a loss during this period if you have not notified them of the vacancy.

Over the years a few insurance company's have addressed this market need for insuring vacant homes and have developed a Vacant Home/Building Insurance Policy. A limited renewal policy that covers a vacant home for a defined period of time.

Vacant home situations occur most often when someone has died and they leave their home to an estate, or a homeowner is trying to sell his/her home and they have already moved out of the home, also when a person or company has purchased a home to renovate and the renovation will not be complete for 60-90 days. There are other situations but I have found these to be the most common.

Thieves, the homeless and vandals target vacant homes and many insurance companies don't want to insure them. Like any other business, insurance companies can choose their target markets and in most cases the insurance company has decided that they just don't want to be in the vacant home insurance business and have done nothing about product development.

Most responsible property owners want to protect their investment until the property is sold or occupied and there are Specialty insurance companies that can insure vacant homes. These policies are offered for 90 days, 180 days and month to month for up to 24 months. The above stated policy periods are important, because even Specialty insurance companies will not insure a vacant home indefinitely at any price. They will want to know that you are pursuing a plan of action to get the property occupied or sold. These policies are for temporary use only. Besides that insuring a vacant property is expensive compared to insuring the same home as an occupied building.

All Vacant House Insurance Policiesthat I have seen are named peril policies vs. all risk policies

Named peril means that whatever happens to your property has to be specifically "Named" in the policy in order to be considered for coverage. Most named peril policies include fire, lightning explosion, windstorm, hail, and riot, civil commotion vehicles owned by others, smoke, volcanic eruption and aircraft. I think anyone considering purchasing this type of policy should also add liability protection and vandalism and malicious mischief.

Depending on the Specialty insurance company , they can settle a claim based on actual cash value or stated value. Partial losses are settled on an actual cash value basis and a total loss to the dwelling could settled based on be the amount of insurance listed on the Declarations Page. Always rely on your agent for a better understanding of what you are purchasing. Don’t just buy the cheapest premium, because as the old saying goes “you get what you pay for.

The best place to start looking for this type of policy is with your own auto or home insurance agent. If they don’t have a company at their disposal, that would accept the risk, they should be able to refer you to an independent insurance agent that can be of assistance.

Most independent insurance agents have access to specialty insurance companies that would be happy to write this type of policy. Keep in mind your best specialty companies that offer the best coverage and premium, want the home to be in reasonable condition. IE No trash or cars in the yard, no boarded up or broken windows, etc. Also try and find a company that will allow you to make monthly payments and have a favorable pro rata cancellation policy.

Good luck.