Does Your Insurance Policy Cover Your Vacant Home?

Guest post by Josh Holcomb with Farmers Insurance in Springfield, MO.

As the current real estate market keeps getting harder for people to sell their houses, it is not uncommon for a home to sit unsold for months. As the house sits on the market for a long period of time many sellers often move out of their current home into a new home, which leaves their old one vacant.

With the challenge of taking care of two mortgages many people don’t stop to think about their homeowners’ insurance policy. I can understand, with that type of stress, all that is on one’s mind is making sure both loan payments get paid. Thinking they have a current homeowners’ policy and that nothing needs to change the owner moves on. But is that truly the case? What happens if disaster strikes and you need to file a claim?

Most insurance policies for homeowners have some type of automatic coverage for up to 30 days on vacant homes. But, after the 30 day grace period is up most insurance companies will stop covering several items, and even some insurance companies will drop your homeowners’ policy all together leaving nothing in force. Some of the things that insurance companies stop covering are things like vandalism, fires and water damage.

So why would an insurance company drop certain coverages or drop the policy all together? Below is a list of some of the reasons:

1. Attractive nuisance
2. Lack of oversight of the house
3. Damage could go unreported for days, which would make the claim bigger than it should have been.

Leaving a home vacant can lead to a lot more problems than a house that is being lived in.

So what should you do if you have a vacant home?

The number one thing you should do as soon as your house becomes vacant is to get in touch with your local insurance agent and let them know. Find out if your current policy covers the vacant home. If your current homeowners’ policy does not cover a vacant home, then your agent can help point you to what you need to do next.

Looking for homeowners insurance in the Springfield, MO area?  Josh Holcomb is a licensed insurance agent with Farmers Insurance in Springfield, MO.  He handles homeowners, health, auto, life and business insurance coverage.  Give Josh a call today @ (417) 429-0644 for your insurance needs.  You can also visit Josh online @ http://insuringtheozarks.com.