Housing Market Stalls Causing More Vacant Homes

The housing market in the Spring of 2010 made a "dead cat bounce" and homes not selling and sitting empty this summer means the need for vacant home insurance. Most people are overly optimistic regarding how quickly their home will sell. Everyone thinks their home is special and will out-compete the competition. Many of these people will move into a new house while the old one sits on the market. In 2010 this is extremely dangerous.

After the home sits empty for just 60 to 90 days homeowners may need to purchase vacant home insurance. Their existing homeowners insurance company will not offer a vacant homeowners insurance policy so they will have to switch carriers. Their existing homeowners insurance company will not continue to cover the empty home while the family moves into a new home as you cannot have two "primary residences." Vacant home insurance is also expensive, and will cost about 3 x to 4 x the previous cost of homeowners insurance.

Vacant Home Insurance Now (.com) has noticed many people having to continually re-up and renew their vacant home insurance and vacant dwelling insurance program because, to but it simply, homes are not selling well in the summer of 2010. The market is not an F, but no better than a C-.

The Vacant Home Insurance Refund Process

Many people have asked us, if a Lloyd's of London policy is chosen for vacant homeowners insurance do they have to commit for the entire six month policy period and if not, what is the refund process for vacant home insurance policies.

The Lloyd's of London vacant home insurance plan is a minimum six month program paid in full but 90 days of premium can be refunded for early cancellation. There is a one time policy cost typically of about $65 that is not refundable but 1/2 of the pure premium is fully refundable.

The bottom line is, clients are only "on the hook" for 90 days of paid coverage and the rest of the premium in these vacant homeowners insurance policies is fully refundable. This also applies to policies for vacant condo insurance and vacant townhouse insurance in all States where the program is available.

Prepping a Vacant or Empty Home

Vacant Home Insurance Now is often asked what needs to be done to prepare a vacant home, whether the owner is buying vacant home insurance or not. However, we would like to remind people that in almost all cases where a home will not be occupied for over 90 days, vacant homeowners insurance is needed to property protect the house.

1. Turn off the water. Vacant homeowners insurance claims from water damage caused by the house's own pipes and fittings is 100 times more common than claims from rain, streams, and rivers. If you cannot turn off the master water valve, for example, it's a common water supply for the entire condominium, then turn off the valve at each toilet. Post signs for prospective buyers and Realtors that if they turn the water on, PLEASE remember to turn it off again!
2. Anyone buying vacant home insurance cannot neglect the house in any way or the policy will be voided. This means keeping the grass cut at least once every two weeks in the growing season.
3. Turn off the mail
4. Have someone enter the vacant home at least once every 7 to 10 days. This is actually a requirement in most good vacant home insurance policies.
5. Make sure the heat is on during the winter months, or if the house is going to remain cold in areas of the country that freeze, make sure all pipes are drained properly or damage can be significant, and many of these claims will not be paid by a vacant home insurance policy if things are not done properly.
6. Make the house look lived-in. Leave curtains and shades up. Set two lights on timers. Nothing says "vacant house" more than empty windows and pitch black windows.