Why is insurance on vacant homes so expensive?

Insurance company actuarial data shows that losses on vacant homes are larger and more frequent than insurance losses on an occupied home.  Theft and vandalism are much more common when a home is empty.  A relatively small problem like broken pipe may only cost a few thousand dollars to fix if noticed within a day, but can quickly turn into major damage tens of thousands of dollars if unnoticed for more than a week. 

As this very basic Seattle Times post notes, you may need a special insurance policy for vacant homes.  Cascadia is now offering coverage on vacant home for properties in Washington State.  Insuring a vacant home may be more expensive than a conventional homeowner's policy, but having the correct coverage is the most important.

One last note on vacant homes.  A second home, or vacation home is usually not as expensive to insure as a vacant home.  Each insurance company has different definitions for vacant, unoccupied, vacation, and second homes, so talk to a reputable insurance agent to clarify all the details before purchasing a policy