Vacant Home Insurance on the Rise in 2010

Vacant Home Insurance now (.com) saw a massive influx of empty and unoccupied houses in 2009 due to the current economic conditions. The trend is not expected to decrease in 2010 as the amount of homes that sit on the market that cannot be sold is not decreasing in most real estate markets in the United States.

Vacant home insurance is needed when a seller of a home has moved out, and the home has been unoccupied for over 60 days in most instances. What's more, most sellers do not think there is any problem with this situation and do not even inform their existing homeowners insurance company that the house in vacant! The big homeowners insurance companies don't do a good job informing clients that they are not going to insure empty homes either. People are caught off guard.

What we see is homeowners finding out they need vacant home insurance by accident, contacting the existing insurance company due to a change in conditon or to respond to an inquiry at renewal time, and even to report an address change.

"When they make this call the last thing they expect is to be cancelled."

It's at that time they are given the word they are being cancelled and told the existing homeowners insurance company cannot provide vacant homeowners insurance coverage.

5 Part Video Series Vacant Home Insurance 101

Vacant Home Insurance Now, the premier website on the net providing information on the need for vacant homeowners insurance and vacant townhouse insurance, is providing a 5 part video series that can be found on U-Tube by searching "vacant home insurance."





This series covers the need for the insurance if a home becomes empty for just 60 days, and why the regular homeowners insurance companies do not provide the coverage. There is a section on the bad advice that is pervasive throughout the market, given by friends, family, real estate agents, and even insurance agents. Advice like, "if you sleep in the house for just one night a week, you can keep your regular homeowners policy and you don't need vacant home insurance." We dispel these sort of myths.






Finally, the series talks about key coverage features when shopping for empty home insurance, and points out there is a big difference in the offering of various companies on a State by State basis. In other words, there is little to no standardization in this market and buyers need to closely examine the quotes they are getting to assure themselves they will buy quality.

1. Understanding Vacant Home Insurance
2. Vacant Home Insurance vs. Homeowners Insurance
3. Getting The Wrong Vacant Home Insurance Advice
4. Vacant Home Insurance Coverage Features
5. Additional Vacant Home Insurance Coverage Features

Winterizing a Vacant Home

Vacant Home Insurance Now provides free information and advice for homeowners that have a vacant or empty home, and need to purchase vacant homeowners insurance. When someone places vacant homeowners insurance, certain things need to be done for the policy to remain in effect and not be cancelled. The empty house needs to be maintained to a certain standard of care. Let's examine winterizing an empty home.

Winterizing is essential for a vacant or empty home. Frozen pipes is one of the top 3 causes of homeowners insurance claims for a vacant or unoccupied home. In the Mid-West, or North-East a homeowner has two choices:

1. All the pipes can be drained of all and any water, and this would allow the heat in the house to be turned off or turned very low to save on energy. Pipes can freeze in a home even if the heat is set to 60 degrees or higher depending on the outside air temperature, how close the pipe is to the outside air, and how much insulation is on the pipe and in the wall between the pipe and the outside air. In most cases we recommend some heat be left on in the house. Having the inside air in a house below freezing is not a good idea and can weather and destroy more than just the pipes.


2. One can leave water in the pipes but keep the heat above 60 degrees to be safe. A frozen pipe with a pipe burst can destroy a home if the damage is left untreated and water on in the house turns to mold and mildew. If the heat in left one, someone should come to inspect the empty house once every week or so.

The owner of a vacant home insurance policy has the responsibility of making sure the house is property winterized, or if the insurance company can prove a reasonable degree of care was not achieved, the vacant home insurance company can deny the claim.

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.