As more homeowners struggle with getting their house sold, some have opted to move on to their next house while still trying to sell their current one. However, potential losses and liabilities with a vacant home may not be covered by a standard homeowners' insurance policy. Homeowners' insurance assumes that the owners are living there and vacant homes are generally considered a higher risk and carry a higher insurance premium.
Some of the risks of a vacant house include:
~ Higher probability of a break in. Burglars will watch neighborhoods or specific houses for activity before breaking in.
~ Higher probability of vandalism. Like burglars, vandals will target an empty house.
~ No emergency response. Emergencies like fire or flooding will go unnoticed until they become larger (and thus more costly) disasters.
With the increase in the number of unsold homes and short sales which can take months to execute the sale, there has been an increase in the number of vacant homes being targeted across the country. Thieves are taking built in appliances such as stove and dishwashers. There are even cases of HVAC units and plumbing fixtures being removed from properties. Problems like this have been especially rampant in states like California and Florida. It is not unusual for policies to exclude coverage if the house was unoccupied for 30 days prior to the reporting of these thefts.
The definition of vacancy will vary depending upon the insurance company and even upon the individual policies. Typically 30-60 days of a home being unoccupied is considered a vacant home. Some policies will continue to cover liability for longer periods of vacancy but not theft or vandalism.
If you have a property that has been recently vacated, read your policy carefully (some have "vacancy clauses" written right into them). We urge you to contact your insurance agent to ensure proper coverage. Be honest about your situation. While you may have to pay a little more for the additional coverage, what would be the point of having lesser insurance if the company could deny the claim? Plus you would only have to carry the insurance until the property is sold.
~Lisa
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
Is Your Vacant Home Properly Insured? Copyright © 2010, The Scott Loper Team, All rights reserved.
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The Scott Loper Team
Scott Loper - Associate Broker
Lisa Loper - Sales Associate
Gina Wherry - Sales Associate
RE/MAX Realty Group
439 Main Street
Harleysville, PA 19438
Ph: 215-256-1200 x-213
