Prepping a Vacant or Empty Home

Vacant Home Insurance Now is often asked what needs to be done to prepare a vacant home, whether the owner is buying vacant home insurance or not. However, we would like to remind people that in almost all cases where a home will not be occupied for over 90 days, vacant homeowners insurance is needed to property protect the house.

1. Turn off the water. Vacant homeowners insurance claims from water damage caused by the house's own pipes and fittings is 100 times more common than claims from rain, streams, and rivers. If you cannot turn off the master water valve, for example, it's a common water supply for the entire condominium, then turn off the valve at each toilet. Post signs for prospective buyers and Realtors that if they turn the water on, PLEASE remember to turn it off again!
2. Anyone buying vacant home insurance cannot neglect the house in any way or the policy will be voided. This means keeping the grass cut at least once every two weeks in the growing season.
3. Turn off the mail
4. Have someone enter the vacant home at least once every 7 to 10 days. This is actually a requirement in most good vacant home insurance policies.
5. Make sure the heat is on during the winter months, or if the house is going to remain cold in areas of the country that freeze, make sure all pipes are drained properly or damage can be significant, and many of these claims will not be paid by a vacant home insurance policy if things are not done properly.
6. Make the house look lived-in. Leave curtains and shades up. Set two lights on timers. Nothing says "vacant house" more than empty windows and pitch black windows.

Vacant Homeowners Insurance for Vacation Homes?

At Vacant Home Insurance Now (.com) perhaps the # 1 question we are asked is the following:

"I am selling my home and moving into another home so I need to buy vacant home insurance on the house I am selling that will be empty for several months while I sell. Why do I have to buy vacant home insurance which is expensive when my neighbor has a second home insured, a vacation home, that's empty most of the year, and he pays 60% less!"

This is an excellent question regarding vacant homeowners insurance. The answer is:

If you can call your empty home a "second home" or "vacation home" by all means do so to save money, but you can't manipulate the facts or risk insurance fraud. Don't let your agent "manipulate" the policy either. Your neighbor may have a legitimate second home or a vacation home, and if he/she can insure this home along side the primary home, it will be much less expensive than buying vacant home insurance. Here the insurer is able to insure the "second home" at a lower rate because they have all of the other client's business in one big package: primary home, car 1, car 2, liability blanket, second home, life insurance, more?

Those that attempt to game the system will mostly likely lose. A major claim on the "second home" that's not really a second home or vacation home will be investigated by an insurance adjuster, and in person. If they find you had set the house up as a second home or a vacation home, and it's really just a home for sale or another situation, the claim will be denied.

XN Financial Services an Industry Leader in Vacant Homeowners Insurance

Vacant Home Insurance Now (.com) partners with XN Financial Services, Inc. a leader in vacant home insurance programs in the United States and Canada. XN Financial is a Lloyd's of London coverholder that has both underwriting and claim payment authority to offer what we consider to be the highest quality vacant home insurance product in North America. They can also offer high valued homeowners insurance and vacant programs in other countries as well.

Most vacant homeowners insurance programs are a limited form of insurance coverage called a Dwelling Policy. XN Financial services working with certain syndicates at Lloyd's of London and has modeled an "all risk" and full coverage program based on HO3 Homeowners policy language. This type of vacant home insurance program is very hard to find in the U.S. and Canada, and is a superior offering.

Please contact Vacanthomeinsurancenow.com for more information on this best-in-class vacant homeowners insurance program.

Vacant Home Insurance Non Renewal Notice; Beware

Clients of vacant home insurance now often learn that vacant homeowners insurance is necessary after they report they have moved to the existing insurance company at renewal time. In order to renew the policy they may "call in" or mail their new address to the existing insurance company. As we have discussed, 95% of clients are then "blindsided" by their insurer when they learn that their existing policy cannot provide vacant home insurance.

Here is where things get interesting. Clients will receive a notice of non-renewal in the mail from their existing homeowners insurance company. The question I ask clients is, even though they will not be renewed, will the existing homeowners insurance policy honor a claim on the vacant home until the renewal date? One should not assume yes.

Something worth noting regarding vacant homeowners insurance; just because you are not being renewed does not necessarily mean the existing company will honor claims on the vacant home. Those in this situation should make sure they get it in writing that all claims will be paid normally on the vacant home until the date of the renewal, or in this case the non-renewal or cancellation date.

Clients that don't get a straight answer are advised to secure vacant home insurance sooner rather than later or they may be taking big risks.

Obamacare may require U.S. citizens living abroad to purchase U.S. qualified health insurance

At Vacant Home Insurance Now, of course we specialize in vacant homeowners insurance but since we deal with many Americans living abroad that need to insure their unoccupied house in the United States, this may be relevant to all of our overseas clients.

As it stands now, it looks like the new healthcare insurance legislation would require Americans that live overseas to buy qualified health insurance, even if they don't need it. This is what we are hearing and I am sure the bill could be changed over time but this is something people living abroad need to be aware of.

Many Americans living overseas have taken out local insurance policies in the country where they reside and some even participate in the National Health Insurance System of their host country. Many do not want to be forced to buy U.S. qualified healthcare.

More to follow as Vacant Home Insurance Now follows this situation for our customers.

A Louisiana bill would ban insurance cancellations due to the Chinese Drywall problem

Last year, Vacant Home Insurance Now reported on a problem homeowners were having with "bad" and corrosive drywall used after Hurricane Katrina. In summary, insurance companies did not want to touch any homes not just vacant houses, with this problem and homeowners were left out in the cold and had to spend thousands to replace the drywall before they could again seek insurance.

A prohibition against insurance companies dropping coverage for dwellings that contain corrosive, Chinese drywall moved forward Wednesday in the Louisiana Senate. Again, this pertains to any form of homeowners insurance not just vacant homeowners insurance in Louisiana.

The bill would stop property insurers from canceling, refusing to renew, or increasing premiums or deductibles because of Chinese drywall at a property. People who rebuilt their homes after Hurricane Katrina claim the imported drywall emits sulfur, methane and other chemical compounds that have ruined homes and appliances and harmed residents' health. The contaminated wallboard is costly to replace.

The bill only deals with drywall that was imported from or manufactured in China before Dec. 31, 2009. Anyone found in violation would face a penalty up to half the insured value of the home or property, plus all court costs and attorney fees. It is still unclear if insurance companies that quote vacant home insurance can still use "Chinese Drywall, as a reason to not quote vacant homeowners insurance.

Gulf and Atlantic Coast Rated Higher for Vacant Home Insurance

The rates for vacant homeowners insurance have been relatively stable for years but the cost to insure an empty or vacant house in Georgia, Florida, South Carolina, North Carolina, and Virginia is now about 15% higher than providing vacant home insurance in Ohio, Arkansas, or Oklahoma for example.

It appears the "hurricane underwriting" that hit those regions several years ago has now affected the vacant homeowners insurance market as well.

When insuring an empty home with vacant home insurance, other States where the cost is above average (and this can depend on the insurer) is lead by California and can include Maine, Oregon and Washington State.

Insurance agents are advised to let clients know that if they are in these States, they may be paying more for vacant home insurance. This is somewhat of a problem because vacant homeowners insurance and vacant building insurance is at least 3 times as expensive a regular home insurance anyway.