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Vacant property insurance (vacant home insurance hereafter) is special insurance protection placed on a residence that is expected to be empty or unoccupied for over 60 to 90 days or perhaps much longer. Every insurance policy offered by a property insurer is different and there are even variations from State to State, but no "regular" homeowners insurance policy is able to cover a house that is not being lived in. Every year, thousands of homeowners leave their home empty or vacant without understanding the provisions of their homeowners policy, and risk everything. In some policies, coverage can be dropped, at least for certain lines like vandalism, in as little as 30 days. Many homeowners that leave their house unoccupied for over 90 days don't understand they may have no coverage, or reduced coverage, in the event of a peril (like fire) that causes a serious loss.

What are the most common reasons policyholders leave their home empty? Some people own two homes and travel from a cold climate in the winter to a warm climate like Florida. Many people are employed by multinational companies, and they can be sent to work on long term and short term assignments abroad. The houses of aging parents become empty when the parent enters a long term care facility. It is not uncommon for the house to sit empty while the family decides what to do, or perhaps they are too busy to immediately list the house on the real estate market.

Of course, the number one reason a house loses insurance coverage by becoming empty or vacant is due to the house being put up for sale, and the sale does not occur quickly, leaving the house sitting empty. In all of these situations, an estimated 60% to 80% of the homeowners are not aware of the provisions of their existing homeowner's insurance policy that would essentially end coverage, exposing the homeowner to catastrophic loss.

In order to properly protect the home, the existing policy needs to be cancelled and a special vacant home or vacant building policy needs to be put in place. A new policy has to replace the old. The vacancy policy is not the same as the existing homeowners policy in most cases. The homeowner has to understand what the differences are, and also should expect to pay much more for a vacant homeowners policy.

Property Insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance,earthquake insurance, home insurance or boiler insurance. Property is insured in two main ways - open perils and named perils. Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism and war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion and theft.

Fire Insurance Coverage: There are three types of insurance coverage. Replacement cost pays the cost of replacing your property regardless of depreciation or appreciation. Extended replacement cost will pay over the coverage limit if the costs for construction have increased. This generally will not exceed 25% of the limit. Actual Cash Value provides replacement minus depreciation. When you obtain an insurance policy, the coverage limit established is the maximum amount the insurance company will pay out in case of loss of property.  This amount will need to fluctuate if homes in your neighborhood are rising; the amount needs to be in step with the actual value of your home. In case of a fire, household content replacement is tabulated as a percentage of the value of the home. In case of high value items, the insurance company may ask to specifically cover these items separate from the other household contents. One last coverage option is to have alternative living arrangements included in a policy. If a fire leaves your home uninhabitable, the policy can help pay for a hotel or other living arrangements.

Property insurance can be a multiple-line insurance, meaning that it includes both property and liability coverage, with an indivisible premium, meaning that a single premium is paid for all risks. Standard forms divide coverage into several categories, and the coverage provided is typically a percentage of Coverage A, which is coverage for the main dwelling.

he cost of property insurance often depends on what it would cost to replace the house and which additional riders—additional items to be insured—are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events. Typically, claims due to floods or war (whose definition typically includes a nuclear explosion from any source), amongst other standard exclusions (like termites), are excluded. Special insurance can be purchased for these possibilities, including flood insurance. Insurance should be adjusted to reflect replacement cost, usually upon application of an inflation factor or a cost index.

The home insurance policy is usually a term contract—a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the property will be damaged or destroyed: for example, if the building is situated next to a fire station; if the building is equipped with fire sprinklers and fire alarms; or if the building exhibits wind mitigation measures, such as hurricane shutters. Perpetual insurance, which is a type of property insurance without a fixed term, can also be obtained in certain areas.