As reported earlier, insurance companies view the liability of a residential property that is being rented differently than a property that is occupied by the home owner. The insurance premium may be 25% or more for a tenant-occupied home.
It gets worse when a property is vacant. Insurance companies may charge 50-60% more for unoccupied properties compared to a regular policy. The coverage will likely be limited too and exclude protection against theft, water damage or glass breakage. Details differ between insurance providers, but their reasoning is the same: if nobody is living in the house or regularly checking the property, the liability for damage is higher. Especially in areas with severe weather.
Most insurance policies consider a home unoccupied when it has been vacant for 30 days or more, without new residents moving in. It is critical that employees who leave their homes vacant – either while on assignment or due to their inability to sell the house after a relocation – check with their insurance provider to arrange adequate coverage.