Owning a vacant home in Colorado comes with unique challenges and risks, especially when it comes to insurance coverage. Whether the property is a second home, a rental that’s temporarily unoccupied or a home undergoing renovations, it’s crucial to understand how insurance policies treat vacant homes. Insurance companies often impose different rules and exclusions for vacant properties, and failing to secure proper coverage can leave homeowners vulnerable to significant financial loss.
Here’s what you need to know about insuring a vacant home in Colorado.
What Is Considered a Vacant Home?
A home is typically considered vacant if it is unoccupied and most of the furniture and personal belongings have been removed for an extended period. Insurers usually define a home as vacant after it has been unoccupied for 30 to 60 days, although this time frame can vary by policy and provider.
Why Does Vacancy Matter for Insurance?
Insurance companies consider vacant homes to be higher risk. Without regular occupancy, homes are more susceptible to issues such as:
- Vandalism – Empty homes can attract vandals or squatters.
- Theft – Vacant homes are at greater risk of break-ins and theft, particularly if it’s clear no one is living there.
- Undetected damage – Problems like water leaks, fires, or storm damage might go unnoticed for long periods. This in turn can lead to more severe damage and higher claim costs.
Because of these increased risks, standard homeowners insurance policies often limit or exclude coverage if the home is deemed vacant. This means that in the event of damage, a standard policy may not cover your claim, and you would be responsible for significant repair costs.
What Coverage Options are Available for Vacant Homes?
To ensure your vacant home in Colorado is properly covered, you may need to consider alternative insurance options. For example, some insurance companies offer vacant home insurance policies specifically designed to cover the unique risks associated with unoccupied properties. Others may allow you to add a vacancy endorsement to your existing homeowner’s policy. This endorsement modifies the policy to provide continued coverage while the home is vacant (typically this is for a specified period). These and other endorsements can offer protection if your property will be vacant.
Protecting a Vacant Home
If your home becomes vacant, it’s essential to inform your insurance provider. Failing to do so could result in your policy being voided or a claim being denied. It’s also a good idea to stay on top of maintenance and take additional security measures. In Colorado, winterization is crucial to prevent issues like frozen pipes in vacant homes.
Contact Us at KK&P Law Firm
Owning a vacant home in Colorado requires careful consideration when it comes to homeowners insurance. If you have to file a property damage claim on a vacant home, contact our team at Kandell, Kandell & Petrie Law Firm for help. Filing insurance claims of any kind is challenging enough – doing so on a vacant property can be even more complex as insurers will come up with all kinds of reasons to deny or underpay your claim. Call us at 720-277-9987 for representation in the greater Denver area and throughout Colorado.
