If you are in the process of selling your home, you will more than likely have an extensive list of tasks to take care of, from sourcing a real estate agent to staging your home ready for prospective buyers. Throughout all this, home insurance might be the last thing on your mind. For those intending to leave a property, taking out a policy might seem like an unusual step to take, but there is a point to it. 

Why Home Insurance During a Sale Is Important

There can be a number of reasons for vacating a property prior to a sale: it might be that there are renovations or repairs that require the house to be empty, or you might already be in the process of moving your belongings into a new place.

Whatever the situation, if your home is empty, your homeowners insurance policy may not be able to cover it in case of any damages, and in many cases, your provider can either refuse any claims made or or cancel your policy. 

What Type of Policy to Take Out When Selling a Home

It is advisable to take out a “vacant and general liability insurance policy”. Policies of this nature are intended to protect your residence from financial loss related to fire, theft and other named perils such as natural disasters. 

Vacant home insurance can either be taken out as an individual policy or added onto your existing homeowners insurance. The amount of time a home is considered vacant depends on the insurance company: in some cases the property might be vacant for at least 30 days; however, in some cases this is extended to 60 days. 

What About Cost?

Much like the other costs involved in selling a home, vacant property insurance is an investment, ensuring that your home remains safe from damage even whilst empty.

On average, a vacant home policy costs 120% more than regular insurance; without someone there to guard it, the property is at higher risk of damage. You can reduce the risk profile of your home and bring down premiums through simple measures like installing smoke alarms and security systems.

When purchasing vacant home insurance, consider the length of time you will need it for, and if you are planning to rent it out, ask whether the policy can be converted to a landlord policy once the home is occupied. This can help to avoid things like paying for the wrong policy or buying more coverage than necessary.

Potential Issues

In order to be covered, vacant homes should still look liveable, otherwise they are at risk of abandonment, which can increase the risk of insurance claims and other related issues.

Not every home will be able to get this type of cover, so if you are considering selling, contact your insurance provider as soon as possible to find out whether you can get it for your property.