Owning a home that sits empty — even temporarily — can create insurance issues many property owners don’t expect. In Massachusetts, insurance policies often include specific definitions and time limits for vacant or unoccupied homes. Once those limits are exceeded, coverage restrictions or exclusions may apply.
If you own a home that is empty due to a sale, renovation, or an estate situation, here’s what to know before coverage becomes a problem.
What Does “Vacant” Mean in Insurance Terms?
In insurance, a home is generally considered vacant when it is:
- Empty of people, and
- Largely empty of personal property needed for normal living
Many insurance policies begin to limit or exclude certain coverages once a home has been vacant for a specified period — often 30 or 60 consecutive days, depending on the carrier and policy form.
Black’s Law Dictionary generally describes vacant property as real estate that is empty or unoccupied — indicating an absence of use or possession.
Note: Insurance policies may define “vacant” differently than general legal definitions.
Vacant vs. Unoccupied: What’s the Difference?
These terms are often used interchangeably in conversation, but insurers usually treat them differently.
Unoccupied
A home may be considered unoccupied if it’s temporarily empty, but still set up as a residence. Furniture and belongings remain, utilities are on, and there is a clear intent for someone to return.
Black’s Law Dictionary generally defines unoccupied property as real estate that is not currently being lived in, even though it may still be suitable for occupancy.
Note: Insurance policies may define “unoccupied” differently than general legal definitions.
Why the distinction matters
From an insurance standpoint, vacant homes typically present a higher risk for vandalism, theft, fire, and water damage. As a result, insurers often impose stricter rules once a property is considered vacant rather than merely unoccupied.
When Should You Be Concerned About Insurance Coverage?
You should review your insurance before a home becomes vacant — not after — if any of the following apply:
- The home is for sale and no longer occupied
- The property is undergoing major renovations
- The home is part of an estate, probate, or trust
- A rental property is empty between tenants for an extended period
- A second home is no longer being used seasonally
Once a home exceeds the vacancy period allowed in the policy, certain claims may no longer be covered — even if the policy is still active.
What Counts as “Major Renovations” for Insurance Purposes?
In insurance terms, major renovations typically refer to work that materially changes the risk of loss — especially when no one will be living in the home during the project.
Examples often include:
- Structural renovations, such as removing or altering load-bearing walls
- Projects that open the home to the elements, including removing the roof or large sections of exterior walls
- Full gut renovations where systems, finishes, and fixtures are removed
- Extended renovation projects where the home is not habitable for a prolonged period
When a home is empty and under major renovation, a standard homeowners policy may no longer apply, and a different type of dwelling or renovation-specific policy may be required.
👉 Learn more here: Insurance Considerations for a Home Under Renovation in Massachusetts
Vacant Home Insurance Policies: When Are They Used?
Vacant dwelling policies or endorsements are commonly used for:
- Homes under renovation or construction (when no one is living there)
- Properties involved in estate settlement
- Homes listed for sale but no longer occupied
- Investment properties awaiting occupancy
These policies are designed for increased risk scenarios and typically include different coverage terms, conditions, and pricing than a standard homeowners policy.
What If the Home Is a Ground-Up Build?
It’s worth calling out a related (but different) scenario: ground-up construction. A home that’s being built from the ground up is typically not treated the same way as a vacant home or a home under renovation.
In many cases, this may require a separate policy designed for construction exposures, often referred to as a Builder’s Risk policy. In some situations, certain homeowners carriers may offer a form of coverage for a dwelling under construction when the work is being completed by a licensed general contractor and specific underwriting requirements are met.
👉 Learn more here: Dwelling Under Construction Insurance in Massachusetts: What to Know
Why Timing Matters
A common issue property owners face is waiting too long to notify their insurance provider. Once a vacancy period has been exceeded, changing coverage after the fact may not resolve a coverage gap.
If you anticipate a home becoming vacant — even temporarily — it’s best to review insurance options in advance.
Talk With a Massachusetts Insurance Advisor
Vacancy definitions, time limits, and coverage restrictions vary by policy and carrier. Working with a local, independent agency can help you understand how insurance may apply to your specific situation.
Risman Insurance Agencies works with Massachusetts homeowners and property owners to help navigate insurance considerations when a home becomes vacant or unoccupied.
Important Disclaimer
Insurance coverage, definitions, vacancy periods, and exclusions vary by policy, carrier, and state.
This article is for educational purposes only and does not alter or extend coverage.
Coverage cannot be added, deleted, or changed until confirmed in writing by the insurance carrier or our office.
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