Vacant Homeowners Insurance Quotes: 3 Problems

When people have a home on the market for sale that becomes vacant or empty, and requires vacant home insurance, they soon find they are being cancelled by their existing homeowners insurance company. When they seek quotes on the market for vacant homeowners insurance there are three potential problems and pitfall that they need to be keenly aware of to avoid major problems down the road.

The first is, what is the name of the insurance company providing the vacant home insurance quote? It's amazing, but people get vacant homeowners insurance quotes and the agent may not even present the insurance company that is backing the quote! Our rule, if you don't recognize the company or cannot find the insurer easily or the Internet, it may not be the strongest quote so look elsewhere.

The second item is, what are you insured for? People get vacant house insurance quotes and they assume they are getting the same level of coverage as when the house was occupied. Instead of all risk coverage for the empty house, they end up with named perils coverage and only 8 perils covered for! Again, this is not readily apparent when one ask for the quote in many circumstances. Always ask what you are insured for and get the list of named perils. (for example, fire, smoke, lightning, wind, etc).

The last pitfall is the perils of vandalism. Vandalism if the # 1 cause for claims in a house that is vacant or unoccupied. All vacant dwelling insurance quotes should come with vandalism. Unfortunately, many do not unless the applicant asks specifically for this coverage and the coverage is added back in for an additional fee.

All-risk coverage from a quality company, and one that includes vandalism is available from vacanthomeinsurancenow.com

Vacant Home Policy or Builders Risk Policy

Many people purchase a home with the idea they will not be living in the home for 3 to 6 months why they renovate the house. After the renovation they will either sell or live in the house themselves. Most of these people understand they will need some sort of vacant home insurance policy during this time, but what kind of policy do they really need?

It really depends on the extent of the renovations. Many vacant homeowners insurance policies will not take the risk if there are major renovations or more than just cosmetic changes being made. A builders risk or contractors policy may be needed instead of a vacant home insurance policy if the following major renovations are being made. However, each insurance company that provides insurance to empty homes acts a bit differently so check with your insurer. You may not be able to secure vacant homeowners insurance if you are doing the following:

1. putting on a new roof
2. taking down walls
3. putting on an addition
4. redoing plumbing
5. redoing the electric system
6. installing central air conditioning
7. building a new kitchen or bathroom

Of course, painting, laying hardwood, and other cosmetic type repairs and improvement should not affect your ability to get a vacant homeowners insurance policy.

The Major Insurance Companies and Vacant Home Insurance

At VHIN, we are often asked the same question. Why don't the big insurance companies insure vacant homes and provide vacant homeowners insurance? It is clear that they are not in the vacant home business, and we will assume they have their reasons, but this question is more puzzling. Why don't they let their customers know that they do not cover vacant houses?

At VHIN, we estimate that 90% of people that call us did not understand the vacant home issue. They did not understand their existing homeowners insurance company did not cover a home that is not being lived in. They tend to find out by accident at renewal time, or when they call the insurance company looking to raise their deductible to save money for example.

In other words they tell the insurance company that home is empty by accident, and then are promptly cancelled and the insurance policy is terminated.

Almost all insurance companies send a newsletter to their clients covering various topics. Why they don't tell customers on the front page "we don't provide vacant homeowners insurance" we don't know but at VHIN, we will continue to spread the word and educate the public on this important issue.

Vacant Home Insurance for Parent Entering Assisted Living

With the baby boom generation hitting it's stride with most in their mid 60's, many will begin entering assisted living facilities and nursing homes over the next 5 to 10 years. When the children decide dad is better off in assisted living, one thing they almost never consider is vacant home insurance while they decide what to do with the house.

In almost all cases, the home is not sold quickly and vacant homeowners insurance is needed. In addition, it's their parents house and most will not want to sell quickly due to sentimental value, or with the hope that one day they can return to their home.

What happens is the home sits empty or vacant for 3 to 6 months, and the existing homeowners insurance company is not informed the home is vacant. Most of these people will completely lose coverage without even knowing it.

Children taking care of homes f0r aging parents need to understand the vacant home insurance issue and how it affects them in order to avert a disaster.