Is it cheaper to insure a vacant or a rented house?

Question

Our house is for sale and we now live in another city. The insurance policy is up for renewal and the agency needs to rewrite it. We have the opportunity to let a pastor live in it for very low rent, but want to weigh our options as the insurance will be going up either way. Would it cost more to cover a rented-out house or a vacant house?

Answer 1

rented

statistically vacant houses have more fires and claims

Answer 2

If you rent to a minister be sure to have your accountant look into it. IMHO, if you rent it to his non-profit church instead of directly to his you can get a tax write off for the below-market loss of income.

Answer 3

Some insurance agencies will not insure a house that is vacant for more than 3 months.  Check with yours.

Answer 4

It's easier to insure a rented property.  Many insurers do not want to issue policies for properties that are vacant.  The reason is because there is no one there to notice a fire, burst pipe, vandalism, etc.