When listing your home, you may need to move before a sale takes place. If you vacate the home, it’s very important that you notify your insurance company, because many homeowner policies have a “vacancy clause” that goes into effect once the home is unoccupied, usually for more than 30 to 60 days.
Insurers see different risks in vacant homes, like vandalism, systems failures, or other liabilities. In most cases, you’ll simply purchase an endorsement to your existing policy, but different insurers have different options, and if an endorsement is not available, you can get a separate “vacant-home” policy.
It may be an additional cost, but it’s called “insurance” for a reason, and could save you a lot of money down the road. If you don’t notify your insurance agent about vacating your home, they could reject any claims you file for property damage or liability, or accuse you of insurance fraud.
It may be tempting to just hope that your home will sell within 30 to 60 days after you have to move out, but it’s critical to speak with your insurance agent before you move to discuss your options. They may even pro-rate and refund part of your premium if you sell before the end of the policy’s term. It’s a small price to pay to protect your home and your peace of mind.
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