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.
Showing posts with label flood insurance. Show all posts
Showing posts with label flood insurance. Show all posts
Hurricanes no problem to homeowners and vacant homeowners market in 2009 so far
So far in 2009, there have been no major hurricanes that have touched the U.S. mainland which is a relief for the homeowners insurance companies and the companies that provide vacant home insurance.
Last year, hurricanes were also light but the previous three years saw a tremendous amount of hurricane activity and homeowners and vacant homeowners insurance rates soared in Florida and the coastal regions of Georgia, Louisiana, and South Carolina. Many regions in Florida require three separate policies. One policy for wind damage which could come from a hurricane. One for flood damage from heavy rain or a hurricane. The third is a basic homeowners insurance policy which normally excludes flood and has a limited wind benefit in Florida.
If a home in a coastal region or in the State of Florida becomes empty or unoccupied for longer than 60 days it will need a special vacant homeowners insurance policy. There are not many insurance companies that provide vacant home insurance in Florida or in any of these coastal regions. If one seeks quotes, make sure you know what perils the plan covers for, and of course see if wind is a covered peril or an exclusion. If you are lucky enough to find an all-risk vacant homeowners insurance policy make sure wind is not listed as an exclusion because all-risk policies do not have a list of what is covered and only the exclusions need to be examined.
Last year, hurricanes were also light but the previous three years saw a tremendous amount of hurricane activity and homeowners and vacant homeowners insurance rates soared in Florida and the coastal regions of Georgia, Louisiana, and South Carolina. Many regions in Florida require three separate policies. One policy for wind damage which could come from a hurricane. One for flood damage from heavy rain or a hurricane. The third is a basic homeowners insurance policy which normally excludes flood and has a limited wind benefit in Florida.
If a home in a coastal region or in the State of Florida becomes empty or unoccupied for longer than 60 days it will need a special vacant homeowners insurance policy. There are not many insurance companies that provide vacant home insurance in Florida or in any of these coastal regions. If one seeks quotes, make sure you know what perils the plan covers for, and of course see if wind is a covered peril or an exclusion. If you are lucky enough to find an all-risk vacant homeowners insurance policy make sure wind is not listed as an exclusion because all-risk policies do not have a list of what is covered and only the exclusions need to be examined.
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