Notice to Expatriates Regarding Vacant Home Insurance Offered From Relocation Companies

Expatriates taking an overseas assignment often decide to keep their home in the United States, particularly if the international assignment will be under two years in length. For many, this will lead to a vacant home insurance problem and the proper vacant homeowners insurance will be needed.

Expatriates that leave their home to work abroad, that intend to have a renter or a house sitter, need to understand they still need to switch their insurance over to a landlord tenant insurance policy especially if a non-family member will be renting or just "watching" the house as a live-in.

Expatriates taking an assignment for larger companies may be asked to work with a property management company for vacant homeowners insurance. These companies may offer their own vacant home insurance solutions. Expatriates are advised to make sure these vacant homeowners insurance solutions are all-risk and true replacement cost policies.

In addition, the relocation company may ask that the insured name the property management company on the declarations page of the vacant home insurance policy. This is a practice that is getting more common but it's unnecessary. They feel being named on the policy will help protect the relocation company and many insurers will accommodate this but there is no reason why this has to be if you, as the insured, is not comfortable with it. Relocation companies may also pressure expatriates to buy their own insurance solution or to buy extra liability insurance. Again, most of this is to benefit the relocation company and not the expatriate. If you purchase quality vacant home insurance, there is no reason they should not be able to provide full property management services and they do not need to be named on the insurance policy.

Why a Seasonal or Rental is Not a Vacant Home

Isn't a seasonal property or a beach property a vacant home, and why do some homes need vacant home insurance coverage and this is not required on vacation homes or homes rented out?

First, the word is just beginning to spread that if you have a house that is empty or unoccupied for over 60 days, chances are you are losing or have lost insurance through your regular homeowners insurance company and you need to put vacant home insurance or vacant homeowners insurance coverage on the home. Those that don't realize this are risking much.

However, someone that owns a property on the ocean, say at the New Jersey Shore, may watch it sit empty for 10 months a year, and these properties do not need a vacant home insurance policy in most cases. Investment properties that are rented for part of the year can be covered under standard landlord/tenant dwelling policies. Insurance companies do not see these properties for rent as the same risk as a vacant home. Properties that are for rent are kept up well, and may often get visitors from owners, realtors, cleaning people etc.

A "second home" also may sit empty for 10 months a year, yet rarely requires a vacant homeowners insurance policy either. In fact, in most cases, the same company that provides homeowners insurance on the primary home will also extend "all risk" insurance to a seasonal or second home. We admit, this is a bit of a paradox. One home is empty or vacant and only expensive vacant homeowners solutions can be offered. Another home sits unoccupied in Scottsdale AZ as a second home and there are no problems securing good coverage at a lesser price. We will continue examining this one.