I wanted to share some "insurance" insider information regarding homes for sale where the owners have already moved and are no longer living there. Within the insurance industry the home could be considered:
1. Abandoned,
2. Vacant or
3. Unoccupied
If a house is considered "abandoned", it is almost impossible to insure - the risk is too high. If a home is abandoned, all furniture is gone, no one checks on it and it falls into disrepair.
Most insurance companies like to consider the home for sale as "vacant". It is very important for your insurance agent to talk to the company and convince them the home is NOT vacant. The company should be convinced the home is "unoccupied". If they consider it vacant, the coverages are extremely limited and the premium is increased - not at all like the coverages and cost of a regular homeowners policy.
In order to help present this "unoccupied" scenario to an insurance company, several things should be in place, such as:
a) If there is an alarm, it should still be active.
b) There should be some furniture in the home.
c) A request to the local police should be made for some extra patrols.
d) Have a friend, in addition to the real estate agent, check on the home periodically.
If these items are in place, the insurance company is more likely to continue the policy under the regular homeowners form.
Koenig & Strey Insurance Agency, LLC
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