Some Homeowners Insurers Offer Vacant Homeowners Insurance but at Ridiculous Prices

It is true, when it comes to vacant home insurance there are not a lot of choices in the marketplace of most States. We have recently heard that, in order to increase profits, some homeowners insurers will offer up to a year of coverage for vacant home insurance but at ridiculous prices, making clients feel they have no other choice.

The cost of vacant home insurance is high to begin with because of increased risk and fewer market choices, but the cost some companies are "offering" to clients to keep the home insured after it becomes empty or vacant is astronomical. What's more, we have seen the level of coverage drop from an all risk policy to what is called a dwelling policy for vacant homes, a limited policy form.

Even if the company agrees to keep the home insured at a more reasonable cost, make sure you get a completely new policy document that proves you have coverage on the empty or unoccupied home. We advise you strongly, do not simply take the agents word for it. Normal homeowners insurance policies are not set up to provide vacant home insurance and many exclude even short term vacancy.

In almost all cases where the home goes empty, seek out an insurance policy that is designed to meet your exact needs not a square policy someone is trying to use for a round hole to make a little more quarterly profit.

Buyer Beware Most Vacant Home Insurance Policies are Limited Named Perils Coverage

A homeowner has a house that becomes empty or unoccupied (and they are one of the few that understand they need vacant home insurance!) They shop the market and take the lowest bidder because they figure this will be a short-term situation and don't want to pay for the best.

What most buyers don't realize about vacant homeowners insurance is that most policies available in most States are not "all-risk insurance" but only offer what is called a limited named perils policy or a dwelling policy (DP1 or DP3). Most people do not read their insurance policy document before they buy. Most will assume the level of coverage offered by the vacant home insurance policy is the same as what they had when they were living in the house. With most policies on the market, this is not the case.

Most policies offered by the large reputable companies when you are living in the home and the house is occupied, are true all-risk policies. When people move to a vacant home insurance policy they may only have coverage for fire, smoke, hail, lightning, and just a few more perils. (far from all risk insurance and few will realize the drop in coverage)

Vacant Home Insurance Now (.com) offers the highest quality of coverage called all-risk and replacement cost, two essential features in quality insurance.