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We are currently moving out of state. Our home is listed for sale and has been cleaned was staged after we have moved out. (We've long been told this is the best way to sell.)
However, our insurance company has just informed us that since we don't live there, they won't insure vacant homes and are cancelling our policy....however, if we get renter's insurance through they, they will 'overlook' that the fact that this house is vacant.
Something doesn't seem quite right to me in all this. We've had neighbors that left their home vacant while trying to sell for over 9 months - and I can't believe they went without insurance (or that their bank let them) for some long.
I have no problem shopping around and getting a new policy...but does this seem accurate to people here?
Was it the company or the agent that advised you of this? And how did they find out that you were leaving the home vacant?
It was the agent we've always dealt with...and no clue how she found out. I just find it hard that no insurance company will insure a vacant home that is for sale as she claimed.
You must have mentioned at some point to someone in the office that you are moving - are you sure you didn't?
It's true that HO doesn't like to cover a vacant home. It's not hard time imagine why - you're much more prone to a loss (vandalism, burst pipes, arson) and unable to mitigate any losses that occur - like if a tree falls on your house and you don't get there to get it off and then rain gets in, and then it gets moldy, etc etc.
There is a reason insurance companies don't want to insure empty houses.
You must have mentioned at some point to someone in the office that you are moving - are you sure you didn't?
It's true that HO doesn't like to cover a vacant home. It's not hard time imagine why - you're much more prone to a loss (vandalism, burst pipes, arson) and unable to mitigate any losses that occur - like if a tree falls on your house and you don't get there to get it off and then rain gets in, and then it gets moldy, etc etc.
There is a reason insurance companies don't want to insure empty houses.
I get that there are reasons....but really....anyone that sells their home has their insurance cancelled? What do people do if they have second homes?
And if that is the case, why would they offer to keep our policy if we got renters insurance though them? (They don't have offices in the state we are moving to, so we couldn't normally go with them anyway.) Something just seems fishy.
As for the insurance agent getting to know about this, either the company she represents or she must be scouring for new listings and matching it up with their insured property list. Minimizes risk for the company.
I always fear insurance companies will do whatever they can to not pay out in the end, based on whatever loop hole they can find. To me, it seems suspicious that they'd "overlook" your not being there if you purchased renters insurance. I get that they are trying to sign another policy, but most of the big insurance companies should either cover you, or not.
I'd call the insurance company directly (NOT the agent) and speak with customer service. Explain the situation, and see what they say. If what they say does not match up with the agent I'd also report the agent to the company as they need to know what people representing them are saying.
If you want to stay with your current company on the home you are selling, and buy the renters coverage, you should request their assurance that vacancy would not be a problem in writing. The insurance policy is a contract and likely has a provision about vacancy that the agent cannot just "overlook". I don't think it is that unusual for a co to make an accommodation in return for other business (everyone has heard of discounts for having both home and auto with same carrier), but it should be clear and in writing. Probably most people with empty houses never tell their insurance co and are just lucky that no claim happened (not a chance I'd be willing to take).
If you want to stay with your current company on the home you are selling, and buy the renters coverage, you should request their assurance that vacancy would not be a problem in writing. The insurance policy is a contract and likely has a provision about vacancy that the agent cannot just "overlook".).
I agree with this 100% - it is oh-so-common for agents to tell their clients things that "whoopssie! We didn't know this would actually be a problem if you have a claim!" - so yes, if your agent wants to play it this way GET IT IN WRITING. If they won't do it, take a pass. I don't know who you are insured with but even independent agents have people they must report to. State Farm has someone that oversees blocks of agents for the company, so if you are suspicious you can go directly to the company and make a complaint but I'd give the agent the chance to "make it right" first.
BTW most people with second homes have them furnished. At any rate, somehow your agent found out your house is going to sit empty which is not an extremely common occurrence - somehow that info got to them.
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