There are many reasons a home may become vacant or unoccupied. Some examples are the need for a quick move to take job in another state, a divorce, and extended illness requiring a long hospitalization or rehab facility stay, etc. Most commonly it involves the death of the homeowner and a need for heirs, beneficiaries, or executors to take steps to insure a home that it no longer owner occupied. It usually does not occur to the average person that a vacant home is a significant insurance event for homeowners insurance. Coverage will quickly be cancelled or dramatically reduced in coverage level when a home is no longer owner occupied.
While a home might be “in a good neighborhood,” or “looked after” by a neighbor, friend or family member, not having the owner present at a residence can and often does result in a significant damage claim at the property. The chance of loss is so dramatically increased, a special type of insurance is required for a vacant property.
Only a handful of specialty insurance companies will underwrite these types of policies and even then significant restrictions on coverage will apply. We have a portfolio of companies that can place coverage up to and including Underwriters at Lloyds of London.
It’s the perfect time to remind ourselves to plan ahead for the ones we love.