How do I get insurance on a vacant power of sale property before my purchase closes?

Insuring a vacant property before closing generally takes more advance planning than arranging a standard homeowner's policy, since many insurers treat vacant properties differently and apply more restrictive terms or additional requirements because of the higher risk associated with an unoccupied home - things like undetected water damage, vandalism, or vandalism-related fire risk going unnoticed for longer. A power of sale property is often vacant precisely because the previous owner has already left or been displaced, so this issue comes up regularly in these transactions.

Rather than assuming your usual insurance provider can simply issue a standard policy quickly, it is worth starting the conversation with an insurer or broker as soon as you know the property will likely be vacant at closing, since arranging appropriate coverage can take longer and may involve different terms than a typical occupied-home policy. Your lender will generally require proof of adequate insurance in place before closing, so this is not something to leave until the last few days.

Speak with an insurance broker early about vacant-property coverage specifically, and confirm with your lawyer what proof of insurance your lender will require before closing.