With the economy now a days I am getting asked more and more about REO transactions and what to look out for. Here is one of the most common questions:

Is my home still covered if it is vacant?

For a period of time, yes. Your homeowners insurance will continue to cover fire and other hazards to a vacant property, but vandalism is specifically excluded by most policies if it has been vacant for more than 30 days. This is why it is very, VERY important to stay in contact with your insurance agent. Theft, damage caused by frozen pipes, and windows broken by any means are also denied coverage. Insurance companies feel that damage to a vacant property can grow worse due to inattention, and some will cancel what coverage does remain in force when they learn of an extended vacancy.