Hurricane Sandy creates Vacant Home Insurance claims in NJ

During Hurricane Sandy, many people found out if they had superior vacant home insurance coverage or inferior vacant homeowners insurance protection which is very common in the market.

We estimate that in most U.S. states, most policies for vacant home insurance are not all-risk insurance policies, but rather are called dwelling policies. A dwelling policy is a limited form of insurance covering only a select number of insurance perils. Some policies are fire only which is about as limited as it gets.

Getting all risk insurance on a home that is vacant or not occupied most of the year is harder to secure, but it is possible through good insurance companies.  Again, many after Hurricane Sandy are finding out just how bad their policies were.

One note, no vacant home policy, even of the highest quality, comes with flood insurance. No "regular" homeowners policy comes with flood insurance as standard so unless someone had taken out insurance from the Federal Gov't Flood Insurance Program, there would have been no coverage for storm surge flooding as well as other types of flooding in the case of Hurricane Sandy.

Vacant Home Insurance Market Still Booming in 2012

Almost 4 years into the houseing "crash" and the need for vacant home insurance is still as strong as ever. What's more, most "normal and traditonal" homeowners insurance companies still do not offer vacant homeowners insurance products, even to long term and existing customers.

In most large homeowner's insurance companies the product does not even exist. In most States, clients are forced to go into the specialty market and the surplus lines market to purchase a decent vacant home insurance policy.

For those that own a home that is expected to be empty for over 90 days, the same "buyer beware" advice exists today as it did four years ago. If you are shopping for vacant homeowners insurance please be aware that most policies are limited and in scope and not full, all risk, vacant home insurance policies.

What's more, these limited policies are still expensive. When looking for a policy make sure it's an all-risk vacant home insurance policy and it's also a replacement cost policy.

June Economic News Means More Vacant Home Insurance Needed

With today's horrible jobs and employment numbers, it means the economic recovery is at best stalled, and at worst, the U.S. could "double dip" back into recession. Houses on the market are not selling, and many are sitting empty.  Vacant homeowners insurance is a necessity for any house that is on the market sitting empty or unoccupied for over 3 months (this is true in most States.)

The big homeowners insurance companies do not sell vacant home insurance in most U.S. States. Those selling a home, and the home is currently not occupied by the owner or at least, a tenant, need to find vacant homeonwers insurance in the marketplace.

In most States, there may only be 3 or 4 insurance companies that even offer vacant homeowners insurance, and where the product is offered, the coverage is often very limited and not an HO3 "all risk" insurance equivalent.

If you can secure an "all risk" vacant home insurance product, expect the premium to be about 4 x as much as the premium you were paying when living in the home.

Vacant home insurance still not on all export lists

Many States still do not have vacant home insurance on their "export list" for surplus lines coverage.  As of 2012, we still know of no name company admitted in the various states that is in the business of providing vacant homeowners insurance.  Yes, they may insure vacant homes as an accommodation for existing clients but if the vacant home insurance situation is expect to last for over six months or one year, they will not find the large "brand name" insurance companies quoting them vacant homeowners insurance.

In States where vacant home insurance is not on the Export list, agents are required to seek three no quotes from the large homeowners insurance companies.  Because none of them provide vacant home insurance to new clients, any agency you call for their prime insurance company will no quote the vacant home insurance risk.

Vacant Home Insurance for Expatriates

Expatriates that sell their home in the U.S. in order to relocate abroad for a corporate expatriate assignment may keep their homes if the expatriate assignment is going to be 3 years or less.  If the expatriate assignment is expected to be more than 3 years, 90% of expatriates will sell their home.  For those that keep their home, expatriate vacant home insurance is essential.  Other essential insurance includes international medical insurance and international workers compensation insurance .

What is expatriate vacant home insurance?  It is a special type of homeowners insurance that is designed to cover a house that is considered empty, vacant, or unoccupied.  In the eyes of vacant homeowners insurance carriers, these words do not represent the same definition.

A rule of thumb that we have never seen broken, if you recognize the name of the homeowners insurance company (as a big name insurer) they do NOT have a vacant home insurance product they can offer customers.  Only in the secondary or speciality market can expatriates find vacant home insurance policies that meet their needs.