[sammyglick]

With all the vacant homes in LV, how are these homes insured? Most policies have a 30 or 60 day vacancy clause which says that after that time period the house is considered vacant (or "unoccupied") and they won't pay claims or they cancel the insurance. I wonder how many people don't even know about this clause and end up thinking they are covered only to find out that while they were in between homes or waiting to move into a home for various reasons, one or the other of their properties is going to be vacant unless a family friend or relative is living in it, which usually isn't the case. How is this handled? Any personal experiences out there to shed light on the subject?

[jfkIII]

I think most walking away and leaving a house vacant couldn't care less...jmo.

[macgeek]

Yes, Virginia There is a Vacancy Clause

Jonathan

[olecapt]

It is a normal piece of a Real Estate Transaction. I sometimes have my insurance guy or one of the specialists write policies for vacant homes,.

In fact I am about to close a vacant house policy that has run since November 1 on a house where the closing got screwed up. The only bad news is we get nicked for $250 minimum for less than two weeks of coverage that would normally be 150 a month or so.

[sammyglick]

I guess I always thought of a vacant house as one that had been abandoned vs. a house that is vacant but for sale or awaiting an owner's arrival but unoccupied until they can move, etc. I understand from the insurance company's perspective that an unattended property is a liability, it's just that I'm wondering what their definition of vacant is? Someone I spoke with recently said if a fridge and a chair or a few pieces of furniture were still there, it would not be considered vacant lol....that seems to be stretching it and I doubt an insurer would view it as occupied if a claim was filed or something happened. I've also heard that vacancy insurance is extremely expensive, so I'm wondering how many people actually are advised by their realtors to purchase it or if they try to get around it in some way or not mention it to clients as a problematical issue? Again, even in cities not hit with mass foreclosures, in the normal course of buying/selling homes, there are going to be "vacant" homes awaiting owners. Or owners with "vacant" homes awaiting sale from where they just moved. It's a difficult situation I'm sure for many people.....

[MadManofBethesda]

Originally Posted by sammyglick

I guess I always thought of a vacant house as one that had been abandoned vs. a house that is vacant but for sale or awaiting an owner's arrival but unoccupied until they can move, etc. I understand from the insurance company's perspective that an unattended property is a liability, it's just that I'm wondering what their definition of vacant is?

Unoccupied.

In fact, if homeowners go on vacation for more than 30 days, they could lose some or all of their coverage unless they make special provisions with their insurance carrier.

Homeowners insurance on vacant houses can vanish - MSN Money

[olecapt]

Actually it is one of the places where you should read the policy. I have heard of policies with less than 30 day occupancy clauses. Never have seen one...and it may be one of those you better check...but I would.

[macgeek]

WOW! - Good thread and something I never even THOUGHT about, in owning a home.

Jonathan

[sammyglick]

indeed, it's something I never thought about either...never had an insurance agent bring it to my attention or warn about the consequences. Most of us don't read our policies as closely as we should. Some of these vacancy clauses are 30 days, some are 60 days, none spell out what their definition of "vacant" is, but I would guess it's a substantial amount of belongings are gone. wow, never thought that being on vacation or out of town for more than a month might trigger a vacancy clause , but it makes sense that it could. thanks for the feedback and info about a clause that's not discussed often and most people don't even know about who aren't in the insurance or real estate business. Personally if an insurance agent has reason to think the insured might not be occupying a home for more than 30 or 60 days I feel they have a professional and ethical obligation to bring it to the insured's attention. Most people take it for granted that once they buy insurance, they are "insured" and "protected" . It's quite common for 2-3 months to go by before a person can get moved into a new residence and during that time it IS vacant, yet they are unaware of the potentially deadly vacancy clause lurking in their policy that leaves them essentially uninsured if something were to happen and they filed a claim.

[nfapps]

With LV having so many seasonal residents, or those with second homes there, does anyone know of a particular insurance company that allows extended periods of vacancy?