Did you know that a home un-occupied/vacant for more than 30 days may not be covered by a home owner's policy? Many insurers are getting tough these days, especially with the amount of vacant, un-occupied properties over these last few years.
Water damage (from frozen pipes), fire, and vandalism are more likely to happen in an un-occupied, vacant home vs. one that's occupied. In addition, the issue can become more severe as there is usually no one around to stop and/or report the problem(s).
If your home is vacant while listed with a real estate broker, don't assume your broker is responsible for performing property management. It is always prudent on the part of the home owner to winterize a home during cold weather months by a licensed plumber or heating contractor to minimize the risk of freezing pipes if the home is vacant. In some cases the winterization may need to be reversed to accommodate inspection of the home by potential home buyers.
Sump pump failures due to electrical outages resulting in flooding, or cooling system failures in hot weather months resulting in humidity build-up are other concerns that may cause deterioration and/or mold issues.
Your interpretation ("we still have furniture in the home so it looks like someone is living there") and your insurance company's interpretation ("we can check utility usage records") - of an un-occupied property may be completely different. Guess who usually wins that argument?
Review your policy and check with your insurer as soon as possible if you think your home may be vacant for 30 days or more (I know what you're thinking. What if I do call and my insurance company winds up cancelling my policy anyway? Ask yourself what is the lesser of two evils: you having to find a new "un-occupied home owner policy" or you finding out that your policy is void after a serious incident?)
Henry Brusca, an insurance agent in the Philadelphia Metro & Main Line area with the Trident Insurance Agency (an affiliate of Prudential Fox Roach) offers this advice: "insurance policies are not one size fits all. There are different policies for each unique situation that arise (owner occupied, vacant, vacant under renovations, builders risk, tenant/non-owner occupied, seasonal/secondary, etc)", he said.
"If the usage of the property does not meet the requirements of the policy, the policy will void at the time of loss. While certain policies are more expensive (i.e. - builders risk), they are the only way to ensure coverage if there is a loss. An insurance policy is a legal document filled with terms and conditions. An issued policy is not a guarantee of coverage at the time of loss."
Keep in mind that it is important to document your plans in writing. If you advise your insurance agent of your plans to move/vacate an insured property, you can't rely on their word at the time of loss. The insurance agent is not the person who will adjust the claim at the time of loss. If your insurance agent tells you that you are not required to change your coverage due to the vacancy, make sure you document all conversations via email. While this won't guarantee coverage at the time of loss, it will show that you have done your due diligence and disclosed your situation to an agent of the company.
If you fall into a "high-risk category", there are some insurance companies that participate in the FAIR (Fair Access to Insurance Requirement); they may offer vacant home insurance.
Check with your state's insurance department web site (for example, Pennsylvania's Insurance Department web site is: http://www.ins.state.pa.us/), often a good resource of licensed insurer information for the state's consumers.
Lastly, Vacant Home Insurance Now headquartered in Malvern, Pennsylvania is one of the leading providers of vacant property insurance in the United States.
Do your homework and review all your options. Don't risk having a lack of vacant home insurance for one of your most valuable assets, your home, but also keep in mind that the cheapest policy isn't always the best and may do more harm than good. All it takes is one serious incident and it could cost you dearly.
Please note: The above is for informational purposes only. You are encouraged to contact an insurance professional or attorney for advice regarding your particular insurance situation.
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