Vacant Home Policy or Builders Risk Policy

Many people purchase a home with the idea they will not be living in the home for 3 to 6 months why they renovate the house. After the renovation they will either sell or live in the house themselves. Most of these people understand they will need some sort of vacant home insurance policy during this time, but what kind of policy do they really need?

It really depends on the extent of the renovations. Many vacant homeowners insurance policies will not take the risk if there are major renovations or more than just cosmetic changes being made. A builders risk or contractors policy may be needed instead of a vacant home insurance policy if the following major renovations are being made. However, each insurance company that provides insurance to empty homes acts a bit differently so check with your insurer. You may not be able to secure vacant homeowners insurance if you are doing the following:

1. putting on a new roof
2. taking down walls
3. putting on an addition
4. redoing plumbing
5. redoing the electric system
6. installing central air conditioning
7. building a new kitchen or bathroom

Of course, painting, laying hardwood, and other cosmetic type repairs and improvement should not affect your ability to get a vacant homeowners insurance policy.