by igolf18atrcc » Sat Jan 21, 2012 12:13 am
My mother had to move to assisted living. Her home is in Rockford, Illinois and is up for sale. No one is living in the home and she will not be back. There is still furniture in the home and the utilities are still on. I received her homeowners bill in the amount of $950.00. Is there another type of insurance we should be buying?
Posted: Thu Jan 26, 2012 05:00 pm Post Subject:
There are multiple factors at play here. To answer this question you need to decide upon the fate of the property. Will you be selling or renting the home any time in the future? Will you be moving in?
Most homeowners insurance policies exclude coverage for vacant homes. Insurance companies consider vacant homes to be ‘high risk’. They will likely discontinue coverage if the place has been empty for more than 30 days. You should immediately inform the insurance company about the occupancy status of the home. After that you can seek coverage for the property through vacancy insurance. Read the policy carefully as they usually have a number of exclusions.
You can also choose to rent out the property and have it covered with a landlords policy. It will save you some money while keeping the property comprehensively insured. You might also want to turn off the utilities if the home is going to be vacant for a while. Live electricity and gas lines add to the risk factor.
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