Mr Karan is a software consultant. He often visits client locations several times a year. However, due to work and travel commitments, the house he has purchased near his office ends up being vacant for the most part of the year. Mr Karan is worried about the perils of theft and burglary that can occur when he is away from home. So, he is contemplating on getting a home insurance policy.
But since his home is vacant for a majority of the months during the year, his insurance advisor suggests to opt for unoccupied home insurance instead of the standard home insurance policy.
Work culture in present times requires most of us to travel and be away from our home for a considerable amount of time. Is your house also unoccupied for most times of the year? Then, this unoccupied home insurance policy is for you.
What is insurance for unoccupied homes?
These types of home insurance are special plans designed to protect uninhabited homes. An unoccupied house is at a higher risk of burglary, theft or even vandalism. Moreover, any damages to the structure, fire perils or even electrical faults shall not get reported immediately. This poses a long term risk for the owners. Say, for example, there is leakage of gas from your cylinder when you are away, and it is not reported immediately, any small spark in the vicinity can set your house on flames. It can also pose damage to the entire structure and also to neighbouring homes too.
Why should you purchase insurance for an unoccupied house?
Different insurance companies have different tenures after which your house is considered to be unoccupied. Hence, you should enquire with the insurer about the duration after which an empty house is regarded as unoccupied. Below are a few scenarios which make it clear as to why should you purchase one –
- You have purchased a second home and plan to visit there only a few times in a year.
- You have purchased a new house, but you are going to move in a couple of months later.
- Work commitments require you to travel frequently.
- You have rented your home to tenants, and they are moving to a different house soon.
What does an unoccupied home insurance plan cover?
Home insurance for unoccupied homes covers the following events –
- Damage to your house due to natural perils like earthquakes, floods, cyclones, etc.
- Burglary, theft, or any other accidentals like fire and electrical damages.
- Loss or damage to the contents of your home, including appliances (if insured).
- Damage to valuable items like paintings or jewellery.
What are the costs involved when compared to a standard home insurance cover?
Home insurance for unoccupied houses can be purchased either as additional coverage or a standalone policy. These offerings may differ among different insurance companies. If you are buying home insurance for a vacant house as an add-on, it may have limited coverage. In contrast, the same policy if purchased as standalone may have more events included in its policy cover.
Thus depending on your requirement, you can add an unoccupied home insurance policy at your insurance renewal too. When shortlisting various plans, do not forget to compare the available plans from different insurance companies. It will help you be informed about the various market offerings and what is best suited for your home. A home insurance premium calculator is a nifty tool that will help you aid the comparison process. So whether you are away for a couple of days or more extended periods, make sure you secure your house using a home insurance policy.
