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.
Showing posts with label empty home. Show all posts
Showing posts with label empty home. Show all posts
Is Vandalism Included In Your Vacant Home Insurance Quote
At Vacant Home Insurance Now, we want to remind anyone shopping for a vacant homeowners insurance quote to always make sure it includes vandalism. First, many vacant home insurance quotes are limited named perils coverage and vandalism is not even on the list of covered items.
In most cases, vandalism and malicious mischief can be added to the policy, but in most cases it is not standard. Vandalism and malicious mischief is the # 1 cause of insurance claims on empty homes that are not occupied. We provide an "all risk" insurance solution for vacant homeowners insurance so with our programs, one does not need to ask if vandalism is on the list because it's always covered.
However, 99% of the market if you are seeking other quotes, is limited named perils (like fire, wind, hail, lightning, smoke, aircraft, etc) and vandalism may or may not be on the list. If you are willing to take the risk of going with a limited policy, we do recommend you pay the extra premium and get vandalism added back into the policy.
Why this is so important, is vandalism can lead to larger claims that will not be covered without vandalism protection. If kids throw a rock through the window, and that night the area receives a downpour of rain, the $20,000 of damage that could follow to the hardwood and drywall will not be covered because the broken window was the cause (assuming this person did not add vandalims and did not choose an all risk insurance solution!)
Working Overseas, Don't Forget the Vacant Home
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Labels:
empty home,
homeowners claim,
house empty,
insurance claim,
vacant home insurance,
vacant homeowners insurance,
vacant property
When my employer sent me overseas for 5 months to finish the programming on a big computer project I had a lot on my mind. I had to be on the project site in 7 days. I had just renewed my homeowners insurance policy with the leading insurer and didn't think there was any problem whatsoever. I was just going for 5 months and my mother will come by once a week or so to look in on the place.
Well my mother did just that but after a few weeks here visits went to once every two weeks. A hailstorm that was very local to our town blew out the picture window in the living room. The house was soaking wet for almost 10 days and mold was growing by then. When I filed the homeowners claim I was given a check for $4,000 but the total damage was over $30,000 because of the mold and how long everything was wet.
I was told I needed to secure vacant homeowners insurance even if I was only going to be away for just 2 months. No one told me I needed vacant home insurance. I was stuck paying the difference out of pocket. The impression I got from the homeowners insurance company was that I was lucky to get even the $4,000 because I had not imformed them the house was going to be empty or vacant.
Well my mother did just that but after a few weeks here visits went to once every two weeks. A hailstorm that was very local to our town blew out the picture window in the living room. The house was soaking wet for almost 10 days and mold was growing by then. When I filed the homeowners claim I was given a check for $4,000 but the total damage was over $30,000 because of the mold and how long everything was wet.
I was told I needed to secure vacant homeowners insurance even if I was only going to be away for just 2 months. No one told me I needed vacant home insurance. I was stuck paying the difference out of pocket. The impression I got from the homeowners insurance company was that I was lucky to get even the $4,000 because I had not imformed them the house was going to be empty or vacant.
Vacant Home; Don't Trust Your Agent to Get It Right
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Labels:
empty home,
insurance agent,
vacant building insurance,
vacant home,
vacant home insurance,
vacant homeowners insurance,
vacant property
Too many people have been burned by trusting their insurance agent when they have a vacant home or vacant property. Sometimes the insurance agent does not even know the terms of the vacant homeowners insurance policy he or she recommends and just get's it wrong, telling the client that they do not need to secure special vacant home insurance coverage.
However there are times, and we hope this is the rare exception, where an insurance agent will tell a client that it's OK to leave the home empty or vacant with the existing policy because the agent knows the insurance company he or she represents does not offer a vacant homeowers insurance policy and they would lose the business and thus their renewal commission.
Whether mistakes are legitimate or on purpose does not matter. We always recommend that the insured get something in writing from the agent stateing that they understand the house will be vacant for a period of time and the insurance will continue without lapse. When asked to put it in writing, the chance for error goes down by a factor of 10.
However there are times, and we hope this is the rare exception, where an insurance agent will tell a client that it's OK to leave the home empty or vacant with the existing policy because the agent knows the insurance company he or she represents does not offer a vacant homeowers insurance policy and they would lose the business and thus their renewal commission.
Whether mistakes are legitimate or on purpose does not matter. We always recommend that the insured get something in writing from the agent stateing that they understand the house will be vacant for a period of time and the insurance will continue without lapse. When asked to put it in writing, the chance for error goes down by a factor of 10.
Bait & Switch Vacant Home Insurance
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Labels:
empty home,
insurance agent,
vacant dwelling insurance,
vacant homeowners insurance,
vadalism
When we leave our home in Radnor Pennsylvania for the winter to spend 4 or 5 months in Scottsdale Arizona, we typically can find someone to "sit" in the house while we are away. Last winter we found no one, and spoke to our agent about how to insure the home.
We were advised that we were in luck, and our regular homeowners insurance company would be able to insure our vacant home at an additional premium. In February of that year, we had a major claim when vandals broke into the house, stole some items, but even worth left about $20,000 of damage in the house.
When we filed the claim with our insurance we were in for a big shock. We had assumed the coverage was pretty much the same because it was the same insurance company. We quickly learned we had no coverage for this incident because the new policy was a reduced level of coverage. Our agent told us "you just can't get the same level of coverage when a home is not being occupied" and this is what people live with. Basically.. we had no other choice?
However, no one explained the coverage was to such a lesser degree. Our advise, when you put on a vacant dwelling insurance policy make sure you know exactly what you are buying.
We were advised that we were in luck, and our regular homeowners insurance company would be able to insure our vacant home at an additional premium. In February of that year, we had a major claim when vandals broke into the house, stole some items, but even worth left about $20,000 of damage in the house.
When we filed the claim with our insurance we were in for a big shock. We had assumed the coverage was pretty much the same because it was the same insurance company. We quickly learned we had no coverage for this incident because the new policy was a reduced level of coverage. Our agent told us "you just can't get the same level of coverage when a home is not being occupied" and this is what people live with. Basically.. we had no other choice?
However, no one explained the coverage was to such a lesser degree. Our advise, when you put on a vacant dwelling insurance policy make sure you know exactly what you are buying.
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