Is my Vacant Home Covered by Insurance?

A reader asks: “Our home is presently on the market as a short sale. Because my husband got transferred to another state, we moved out several months ago. The short sale is taking forever to close. We’ve been waiting since April and now it is August. Last night, my agent called to say somebody had broken in to our house and stolen all of the appliances. Will the bank pay for this vandalism? Is my vacant home covered by insurance?”

Answer: I always warn clients that they shouldn’t wait for a vacant home to be vandalized before checking their insurance policy. A little known fact is that most homeowner insurance policies do not extend coverage on a vacant home for more than 30 days.

This means that if you’ve moved out more than 30 days ago, your home may no longer be insured, even though you may have paid the premium for your insurance policy. The verbiage is often in the fine print.

 

Short Sale or Foreclosure Vacant Homes and Insurance

In short sale situations, often the bank will send out a representative from a preservation company to determine whether the home is vacant. Even if you just moved down the street, these people will change the locks and notify the bank that the home is vacant. The bank may or may not take out hard-to-find and expensive insurance to insure that vacant home. They send the bill to you.

 

Types of Vandalism for Vacant Homes

It’s not unusual for a thug to cut off a lockbox in the middle of the night and take it home to drill out the key. Then, the thieves can return in the light of day and walk right in the front door. They back up a truck and before you can say “police,” they have loaded the truck with all of the appliances.A thief does not need to break into a home to cause damage. A thief can swipe, for example, the existing electrical panel and A/C compressor unit fairly easily because these items are generally located on the exterior of the home, in a side yard.

Sometimes kids, just for twisted fun, will throw… read morre:  http://homebuying.about.com/od/hazardfireinsurance/f/Is-My-Vacant-Home-Covered-By-Insurance.htm

If you need protection for your vacant property, we would be happy to help you.  Call us at 800 (807) 6871 to get your free quote today?