Unoccupancy

What Does Unoccupancy Mean?

Unoccupancy refers to the condition of a property, such as a home or building, that is not occupied by people but still contains furniture and other belongings. Most insurance companies do not provide coverage for properties that remain unoccupied for 30 or more consecutive days. To address this, an unoccupied home insurance policy is required, which typically comes with a higher premium due to the increased risks involved.

A home in a state of unoccupancy may also be referred to as uninhabited.

Insuranceopedia Explains Unoccupancy

The reasons for a house being unoccupied can vary. It might be undergoing probate proceedings, the occupants may have moved to a hospital or home care facility, or the property might be listed for sale. The specific reason for unoccupancy often determines whether a standard home insurance policy provides coverage. While most policies do not, some insurance providers offer coverage for unoccupied properties, typically at a significantly higher premium.

Owners who split time between residences run into this problem often, since a vacation home left empty for months at a time may trigger the same 30-day exclusion. In cases where a standard homeowners policy won’t cover the property at all, a DP-3 dwelling fire policy is sometimes used instead, as it is designed for homes that are not owner-occupied.