diff --git a/supervisor/addons/options.py b/supervisor/addons/options.py
index 45a2f9951..ec81e6619 100644
--- a/supervisor/addons/options.py
+++ b/supervisor/addons/options.py
@@ -138,7 +138,7 @@ class AddonOptions(CoreSysAttributes):
                 range_args[group_name[2:]] = float(group_value)
 
         if typ.startswith(_STR) or typ.startswith(_PASSWORD):
-            if typ.startswith(_PASSWORD):
+            if typ.startswith(_PASSWORD) and value:
                 self.pwned.add(hashlib.sha1(str(value).encode()).hexdigest())
             return vol.All(str(value), vol.Range(**range_args))(value)
         elif typ.startswith(_INT):
diff --git a/supervisor/utils/pwned.py b/supervisor/utils/pwned.py
index 5693c0946..c8addd4a7 100644
--- a/supervisor/utils/pwned.py
+++ b/supervisor/utils/pwned.py
@@ -22,7 +22,7 @@ async def check_pwned_password(websession: aiohttp.ClientSession, sha1_pw: str)
             data = await request.text()
 
         buffer = io.StringIO(data)
-        for line in buffer.readline():
+        for line in buffer:
             if sha1_pw != line.split(":")[0]:
                 continue
             return True
diff --git a/tests/addons/test_options.py b/tests/addons/test_options.py
index ca58a82e2..ed6c2a04a 100644
--- a/tests/addons/test_options.py
+++ b/tests/addons/test_options.py
@@ -181,6 +181,11 @@ def test_simple_schema_password(coresys):
 
     assert validate.pwned == {"7110eda4d09e062aa5e4a390b0a572ac0d2c0220"}
 
+    validate.pwned.clear()
+    assert validate({"name": "Pascal", "password": "", "fires": True, "alias": "test"})
+
+    assert not validate.pwned
+
 
 def test_ui_simple_schema(coresys):
     """Test with simple schema."""