Friday, August 6, 2010
The insurance risk of vacant homes
The risks are less obvious, however, when the home sits vacant. The home has a higher risk of break-ins or trespassers on the property. There's no one around to call the fire department, gas company, police or plumber if something goes wrong -- and no one around to quickly spot smoke or other trouble signs.
The National Association of Insurance Commissioners, citing the nation's struggling housing market, this week put out a press release detailing some of these hazards and steps to take. Among the key points: Homeowners policies are meant to insure homes that are occupied. Some may not pay claims if a home is vacant for 60 days or more; others automatically reduce coverage when the home sits unoccupied for a certain period of time.
The good news: According to the NAIC, many insurers will let you pay extra for an endorsement that covers unoccupied dwellings. Click the link above for more details.
Posted by Rich R. at OIC at 2:56 PM