Can I keep insurance on a vacant home?

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PostPosted: Wed Aug 24, 2011 7:07 pm   Post subject: unoccupied home  

Dad is in assisted living. We have been at the house almost everyday, getting it ready to sell. A friend in the insurance industry said for a home to be considered "occupied" he should come home a single night every 2 months. Is this accurate to the letter of the law if not the intent?


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PostPosted: Sat Sep 10, 2011 8:35 pm   Post subject: Hazard insurance  

We own a second home, it is just in my husbands name. We live in our joint home.

We have hazard insurance on the one in just his name. There was a fire today, bad. I looked at the insurance paperwork and it says that it's based on owner occupied.

While my husband does not live there, the house was occupied by our nephew, as we did not want to leave it vacant.

He does not pay rent, he is just a family member making sure nothing happens to it Sad

It is not on the market, we were actually waiting for the marked to get a little bit better before selling.



What I need to know is, if we are still covered since even tho my husband doesn't live there, it's not vacant or a rental.

Should my husband say he lives there occasionally?


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PostPosted: Sun Sep 11, 2011 4:33 am   Post subject:   

Since the dwelling was occupied, the vacancy issue is moot. But the "owner-occupied" status may be problematic.



Was it known to the insurance company as a second home? Does your husband spend any time there on a regular basis? If not, the proper coverage would have been a "dwelling" policy.



Did your husband obtain the insurance on his own or through an agent? If he used an agent, was the agent aware of the occupancy issue? If the agent was, and the coverage was applied for incorrectly, then your husband may have a claim against the agent's Errors & Omissions insurance if your husband's insurance company denies the claim.



File the claim with your husband's insurance company and answer their questions honestly and see what happens. The coverage may actually still apply, but only to the damage to the structure . . . any contents not your husband's would not be covered.



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PostPosted: Mon Sep 26, 2011 11:27 pm   Post subject: Insurance  

I have a homeowners policy and my grown kids occupy the residence. I actually live elsewhere in the city. Is my homeowners policy still valid. There is no rent.


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PostPosted: Tue Sep 27, 2011 4:59 am   Post subject:   

Yes, it should still be valid.



Since, family members are residing in your house and not tenants, I don't think there should be any problem as long as premiums and regular maintenance of the house are taken care of.

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PostPosted: Tue Sep 27, 2011 6:01 pm   Post subject:   

Unless these "family members" are IRS-qualified dependents, the answer is NO.



Although you retain insurable interest in the structure and fixtures, you do not want to "own" the LIABILITY for the negligent acts of the "tenants" you are passing off as "family members". And unless you have provided all of the furnishings, their clothing, and all their other personal property, you do not have insurable interest in any of that stuff, so your policy would not pay for the loss to any of it. To attempt to make a claim for that stuff as if it were yours is INSURANCE FRAUD, and that's usually worth about 5 years in prison.



You should have a "Broad Form" Dwelling Policy to cover your liability (for your negligent acts as the property owner) and the structure and fixtures (all risks that are not excluded are covered -- so you look at the list of exclusions to determine your exposure, and possibly choose to add riders to cover any of the important exclusions you see), your "tenants" need a renter's policy to cover their contents/personal property.



To continue to do this as you currently are is not the best situation for all persons involved.



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PostPosted: Thu Nov 03, 2011 3:20 pm   Post subject: INSURANCE  

WHAT IF A TENANT HAS PURCHASED HOMEOWNERS INSURANCE ON THE HOUSE


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PostPosted: Thu Nov 03, 2011 9:00 pm   Post subject:   

Quote:
WHAT IF A TENANT HAS PURCHASED HOMEOWNERS INSURANCE ON THE HOUSE




The tenant cannot purchase a true homeowner's policy, like a HO-2, HO3, etc. The only form available for renter's is called a "Tenant Homeowner" contract, usually called a "renter's" policy. In the business it's known as a HO-4.



This only provides protection for the tenant's personal property, personal liability and med pay and additional living expenses. It does not provide any coverage for the structure or outbuildings, like a "real" homeowner's policy would.



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PostPosted: Mon Nov 07, 2011 5:35 am   Post subject:   

A renters policy provides protection only to the tenant's own contents, liability, medical bills and ALE but not the the actual property.

For financial protection against damage to the property, Landlord's insurance is needed. Landlord's insurance provide legal protection against lawsuits arising from injuries suffered by a tenant or a visitor to the property. Landlord's insurance is like a homeowners insurance with few differences.


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PostPosted: Wed Nov 09, 2011 3:29 pm   Post subject:   

Quote:
WHAT IF A TENANT HAS PURCHASED HOMEOWNERS INSURANCE ON THE HOUSE


What my colleague, InsTeacher, inadvertently left out of his entirely accurate response was the reason the tenant cannot purchase a homeowner's policy: LACK OF INSURABLE INTEREST. This is the foundation underlying all insurance contracts. If you don't own it, you cannot insure it. All you can do is insure yourself and your personal property.


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PostPosted: Mon Jul 16, 2012 3:31 pm   Post subject: death of parent, not owner occupied  

Ins. says, NC law requires notice & know your rights.renewal of pollicy, dwelling is not owner-occupied & therfore ineligible for this type policy, There is a manager,caretaker living in house & on property at all times

What is the solution?


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PostPosted: Tue Jul 17, 2012 6:19 am   Post subject:   

You obtain a DWELLING POLICY to cover damage to the structure (you probably want a DP-3 policy) and liability losses. It does not cover your tenant's personal property.



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PostPosted: Mon Aug 27, 2012 10:06 pm   Post subject:   

my utility has been off in my home for 1 year my home is paid for and been unoccupied for 1 year . i paid my homeowner insurance for that year does my policy cover my home if there is any damge to my home


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PostPosted: Tue Aug 28, 2012 10:25 pm   Post subject:   

Quote:
my home is paid for and been unoccupied for 1 year . i paid my homeowner insurance for that year does my policy cover my home if there is any damge to my home


Your home will have only limited coverage. None for vandalism & malicious mischief (VM&M), none for freezing of water pipes. If the property is going to remain vacant, you need to speak with your agent and get the proper coverage -- IMMEDIATELY.


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PostPosted: Mon Sep 17, 2012 5:41 pm   Post subject: What kind of ins. do I need?  

I have been a WI homeowner for over 50 years. Recently moved to FL. I havent sold my home in Wi yet, want to know what kind of insurance do I need. my Grandaughter and family are living in it now, so it is occupied.


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