I was doing my after-lunch Twitter check this afternoon and came across an article from the Insurance Journal. It was regarding whether or not vacant homes need insurance and if homeowners policies are sufficient. I retweeted their link, but in case you missed it or don't tweet, I have a little synopsis below. With everything going on in the economy, job market and housing market, it's a question we should all know the answer to.
While the economy might be improving, the housing market has been slow to follow leaving many with homes they cannot sell. While some consumers can decide to live in the home until the market improves or their luck changes, many cannot. For a good number of consumers, the improving economy has provided them a job--but not in their current city. This poses the question: Does a vacant home need insurance? In a word, yes! And homeowners insurance is not enough.
Unfortunately, homeowners insurance doesn't cover some of the added risk that comes along with a vacant home. These risks included break-ins, emergency response, and property liability just to name a few. It's evident when a home isn't being lived in. There is never a car in the driveway, the house is too quiet and there may be the obvious "For Sale" sign in the yard. For those persons looking to vandalize property, these are telltale signs. And who will be there to call a plumber if a pipe bursts in the night? If there is any work being done on the home to improve it for sale or for general upkeep so the house can be shown, the owner of the home could be found liable for any accident or damage when they aren't there.
So, what do you do if you have to move and can't sell your home? Check your homeowners policy first. You may have a predetermined time frame in which your homeowners insurance will still pay any claims. Your homeowners insurance may also have a "vacany clause" that can be put to use if you will be gone for a significant amount of time. You can also call your insurance agent and find out if there is an additional type of policy they can provide you to cover these types of events in case your homeowners will not. Unfortunately, these types of policy tend to be more expensive than traditional homeowners coverage. But, then again, not being covered could potentially cost you a lot more in the long run if your home is damaged.
For more information, please call us today. You can also check out the original article from the Insurance Journal here.
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Posted Monday, August 09 2010 2:42 PM
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