Here's an insurance heads up for owners of vacant homes

Janna Rankin Scharf, CHLMS, GRI, SFR - Coeur d'Alene Idaho Homes For Sale

I had an interesting conversation with my friendly homeowners insurance agent. A few important points came up concerning vacant homes that I would like to pass along.  Here in beautiful north Idaho, we have many second homes as well as investment properties, and it is very common to have vacant homes listed for sale.

Since the real estate market collapse, theft related claims have skyrocketed.  Vacant homes are targets for break ins and theft - of everything from appliances to fixtures to copper pipes.  This isn't a news flash to most of us.  Underwriting for claims has become very stringent. 

Did you know that a vacant home triggers a vacancy exclusion in your insurance policy?  As many homeowners are surprised to find out, once you get to your renewal period, your vacant home will be insured under a limited risk policy with a rate that can be four to ten times higher than when the home was occupied!

The definition of vacant home is
a home void of contents.

If your home has functional contents - beds, dressers, kitchen table and chairs, some dishes and silverware, sofa and lamp - it isn't a vacant home.  You may not be living there, but it's not a vacant home.  There may not be food in the refrigerator or clothes in the dresser, but it's not a vacant home.  Considering the king's ransom you will pay for a vacant home limited risk policy, it would be a very cost effective option for many homeowners to keep some furnature in place until the home sells.  Be sure to check with your insurance company to learn what their guidelines are.

Here's another bit of insurance trivia. 

The #1 cause of insurance loss for vacant homes
in Idaho isn't theft, it's water damage from pipes bursting. 

Some sound and simple advice, if you haven't professionally winterized your vacant home, is to at least shut off the water.  Then, if your pipes do freeze and burst, you won't have 1000's of gallons of water, or more, flowing into your house!