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Is your new "Home Sweet Home" is making you leave your old abode "Home Alone"?
Today's real estate market is not without its challenges. Certainly, you do not
want to be left alone when trying to figure out how to maneuver your way through.
Do you have a home that you had to leave all "alone" because you needed to move
on? Did you have to leave your former abode to wait for its sale all on its own?
There are so many homes are on the market and for much longer than they may have
been in the past. As people find a new home and move on, sometimes they may need
to leave their old home "alone", vacant or unoccupied. Here is some information
that will help. For example: If a home is "vacant" for over 60 days, many homeowner
policies automatically take away important coverage.
"While the Cat's Away" 101
When a home is vacant for longer than 60 days, two major problems may arise. One
problem is you can lose important coverage under your homeowner policy. Vandalism
and glass breakage are usually not covered on a homeowner policy when a home is
vacant over 60 days. In fact, some homeowners policies often exclude any ensuing
loss started by vandalism. In addition, if a home is unoccupied, vacant or under
construction, you must either maintain heat in the home or shut off the water and
drain the system and appliances of water in order for freezing or bursting of pipes
to be covered. A second issue is that most home insurance companies will not continue
to insure vacant homes, once they have become aware the home is vacant. One of the
requirements to purchase a "homeowner" policy is that the home being owner occupied.
An insurance company considers a home becoming vacant a "substantial change in risk"
and this is one of very reasons that Illinois state law allows an insurance company
to cancel a policy with a 30 day notice of cancellation. If your policy is cancelled
or non-renewed for vacancy reasons, there are only a handful of insurers willing
to insure vacant homes and it is usually at a much higher premium than a homeowner
policy. In addition, most vacant home policies have an "earned premium", which means
that even if you cancel your policy mid-term, you will not get the entire unused
premium back. If you are able to secure a policy to insure your vacant home at a
reasonable price, chances are the coverage is very limited.
Does your vacant home have that "lived in" look? It's definitely the "in" look
for your vacant home...
A home is "vacant," as defined by the courts, if it does not contain enough furniture
for a resident to reasonably live there. If there are no beds, appliances, or furniture
the homeowner insurer may consider the home vacant and could try to apply vacancy
exclusions if a loss occurs. This means you may be without coverage entirely or
the coverage could be very limited. We say keep your home intact, and make sure
it has that lived in look. Not only can it help in case of a loss, but it may help
keep vandals away as well.
How can you make your home not so vacant?
The best way to prevent the insurance penalties of a vacant home is to make sure
your home cannot be defined as "vacant". Keep enough furniture in your unoccupied
home so that it doesn't meet the definition of being "vacant." If your home is already
without furniture or you need to take your furniture to your new residence, either
rent some furniture or have your realtor "stage" your home with furnishings.
Don't make your vacant home "Risky Business". Here are some great tips to keep
your unoccupied home cared for.
Even if you avoid vacancy penalties, you still face increased risks to your home
because it is not occupied. You can reduce your chances of having a major loss by
installing a central alarm monitored for burglar and fire/smoke and adding an optional
temperature sensor to protect the pipes from freezing. This alarm can also get you
a 10 to 20 percent discount on your homeowner rates. Another strategy to reduce
your risk is to rent your home. Another option is to have a live-in "caretaker"
who cares for the property in exchange for housing. At the very least, the home
should be regularly checked on.
Vacant homes that are being shown by a realtor should have the realtor conduct thorough
security checks at the close of showing days. Your realtor will need to do a security
walk through before they leave for the day. This means checking windows, all doors,
the garage door and any other access point that could have been unlocked. Have your
realtor keep a record of visitors as well. It's a good idea to keep some sort of
record of the people who visit your house. Obviously you should be gathering phone
numbers and email addresses, but these are easy to fake. Consider having your realtor
staff keep written notes of physical descriptions next to visitors, especially if
you've had a rash of burglaries in your area recently.
Encourage police to conduct a night time drive-by at your vacant home. Most thieves
strike at night. If it is not possible for you, have your realtor or local police
drive by at night and make sure the house is secure. Primarily you're looking for
unlit areas that could conceal a burglar's activities. Are all your lights lit?
Burglars may be visiting by day to unscrew light bulbs outside a house. Also, how
much potential cover does your landscaping provide? If your vacant home's privacy
hedges conceal an area where burglars could load up a van, then they may need to
go. There's nothing like a night time visit to see where you could be vulnerable.
Give your neighbors your contact information and ask them to contact you if they
see or suspect suspicious behavior. They can keep you updated on what is happening
in your vacant home neighborhood.
Leave it alone? We don't think so...Let us help you with everything related
to insuring your vacant home
If you cannot avoid your home from being vacant, or if you have any questions about
insuring a vacant home, call us at Auto and Home and we can discuss the best options
with you.
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