Why the intended usage of your property matters for insurance coverage

The occupancy status of your home—whether it’s primary, secondary, vacant, or used as a rental—directly affects your Homeowners insurance coverage. Insurers assess risk based on how frequently the property is occupied, as each status comes with different risks. Primary residences are generally considered lower risk, while secondary homes and vacant properties are more vulnerable to issues like theft, vandalism, or undetected damage. Landlord properties, where tenants occupy the home, pose additional risks like tenant-caused damage or liability, requiring specialized coverage such as Landlord insurance.

Failing to update your insurance policy to match your home’s current use can lead to coverage gaps. For example, standard Homeowners insurance may not cover damages or liability in a rental property or vacant home. Keeping your policy accurate ensures you have the right coverage for your property's specific risks, avoiding denied claims and ensuring peace of mind. Regularly reviewing your policy is essential as your home’s occupancy status changes over time.