Rakesh, an IT engineer, is required to work on-site at client locations for several months in a year. His work entails him to travel extensively to foreign locations to supervise the IT systems of various clients and maintain relationships with them. Since his parents live in his hometown, Rakesh bought a house for himself in the city close to his workplace. However, due to his extensive travel and work commitments, Rakesh’s house is unoccupied for at least a month to 6 months in a year.
Hence, instead of going for a regular home insurance policy, Rakesh chose to go for insurance for unoccupied homes. The insurance for unoccupied home not only safeguards and insures Rakesh’s house from fire, theft and damage but also provides him with peace of mind while he is away for work.
Do you own a second home or does your work require you to travel most part of the year? Don’t worry! You can now avail insurance for unoccupied homes. With rapid globalisation and increasing disposable incomes, people are now buying more than one property, either to be used as a second home or for investment purposes. However, keeping it unoccupied can expose it to considerable threat of vandalism, illegal encroachment or structural damages.
“Insurance for unoccupied homes can be referred to as specialty property insurance designed to secure your uninhabited house in case of theft, loss or damage.”
Why do I need Insurance for Unoccupied Homes?
If you are away from your house for more than 30 days at a stretch, you may want to consider buying insurance for unoccupied homes, since different insurance companies have different policies for providing coverage for any damage caused during the period the house was left unoccupied. Hence, it is advisable to speak to your insurer to understand specific limitations around the span of time the house could be left unoccupied and how the company defines it.
Below is the list of few scenarios which could justify why you need to take insurance for unoccupied homes.
- You’ve bought a second home and visit there only couple of times in a year
- You’ve bought a new home but would take several weeks before you move-in
- Your work requires you to travel extensively for most parts of the year
- You are going to be away for a couple of months for medical treatment
- You’ve moved to a different place as renovations are going on
What are the costs involved as compared to the regular home insurance policy?
You may purchase the insurance as a separate policy or as an add-on to your current home insurance policy depending upon the insurance company’s policy coverage and as per your need. Various home insurance policy providers have varying policy conditions and coverage options. If you are taking it as an add-on to your current home insurance policy, chances are it may only cover the property for damages caused due to fire or theft. Moreover, if you take standalone coverage for unoccupied homes, you may cover it for 10-12 scenarios such as fire, theft, vandalism, loss of contents, etc.
https://www.icicilombard.com/blog/home-insurance/hoi/did-you-know-that-you-can-get-home-insurance-for-unoccupied-homes
