Not only do many policies have limitations on vacant buildings, but there is a body of case law and some insurers share the premise that, if you no longer reside in your home, you have NO coverage on the dwelling and structures.
The Big I has done extensive research on this and published a white paper that gives over a dozen situations where someone may lose their home cause they’ve moved out with no intent to return. The paper cites court cases and recent actual claims where six-figure losses have been denied.
“Your regular homeowners insurance policy will quickly reduce or terminate your coverage if your home or building becomes vacant or unoccupied. In some cases, coverage is lost in just 30 days.”
Actually, coverage can be lost immediately as soon as you move out with no intent to return. As another poster said, there is case law where courts have found that if you don’t reside there anymore, you have not coverage in your house instantly.
I predominately write insurance nationwide for vacant homes and the issue of vacant home insurance has always been brushed under the rug. Most homeowners don’t realize their vacant homes are not covered until they file a claim. My dream for the future of this issue is that big box insurance companies attempt to inform consumers about this issue instead of capitalizing on the opportunity to deny a claim. Please see our website http://www.vacanthomeinsurancenow.com for more information on this issue & why vacant home insurance is so important.
“Save 15%!” (as if spending three quarters of a BILLION dollars on advertising is going to save someone by cutting out the “middleman” agent who would be your ONLY advocate on a denied claim)
“Minimum Limits for Minimum Budgets!” – check out the minimum limits in the UK
“Same coverage, more savings!” Insurers selling inferior products try to make you think all auto policies are identical. Just because policies have liability, medical payments, uninsured motorists, and physical damage coverage doesn’t mean the coverages within those categories are the same.
In the current housing market, we are going to see a lot more claims denied for such reasons as unoccupancy. This is where good agents can make a huge difference for their insureds, and why people need to think about more than the price of a policy. As a friend in the business once said, “I’ve never met a claimant who was worried about how much their insurance premium was. All they cared about was whether they were adequately covered.”
Not only do many policies have limitations on vacant buildings, but there is a body of case law and some insurers share the premise that, if you no longer reside in your home, you have NO coverage on the dwelling and structures.
The Big I has done extensive research on this and published a white paper that gives over a dozen situations where someone may lose their home cause they’ve moved out with no intent to return. The paper cites court cases and recent actual claims where six-figure losses have been denied.
The paper can be accessed here:
http://www.iiaba.net/VU/NonMember/WhereYouReside.htm
Every agent and insurance regulator in the country should read this.
Your web site says this:
“Your regular homeowners insurance policy will quickly reduce or terminate your coverage if your home or building becomes vacant or unoccupied. In some cases, coverage is lost in just 30 days.”
Actually, coverage can be lost immediately as soon as you move out with no intent to return. As another poster said, there is case law where courts have found that if you don’t reside there anymore, you have not coverage in your house instantly.
I predominately write insurance nationwide for vacant homes and the issue of vacant home insurance has always been brushed under the rug. Most homeowners don’t realize their vacant homes are not covered until they file a claim. My dream for the future of this issue is that big box insurance companies attempt to inform consumers about this issue instead of capitalizing on the opportunity to deny a claim. Please see our website http://www.vacanthomeinsurancenow.com for more information on this issue & why vacant home insurance is so important.
Thank you so much for writing this article.
That’s why I gag when I see commercials that say:
“Save 15%!” (as if spending three quarters of a BILLION dollars on advertising is going to save someone by cutting out the “middleman” agent who would be your ONLY advocate on a denied claim)
“Minimum Limits for Minimum Budgets!” – check out the minimum limits in the UK
“Same coverage, more savings!” Insurers selling inferior products try to make you think all auto policies are identical. Just because policies have liability, medical payments, uninsured motorists, and physical damage coverage doesn’t mean the coverages within those categories are the same.
You really do get what you pay for.
In the current housing market, we are going to see a lot more claims denied for such reasons as unoccupancy. This is where good agents can make a huge difference for their insureds, and why people need to think about more than the price of a policy. As a friend in the business once said, “I’ve never met a claimant who was worried about how much their insurance premium was. All they cared about was whether they were adequately covered.”