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Old 11-28-2017, 09:32 PM
 
20,948 posts, read 41,313,125 times
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Quote:
Originally Posted by OrganicSmallHome View Post
Risk of what? The house is located in a good neighborhood and has an alarm system. I'm mystified.
Don't know about AZ but in FL there are three levels of occupancy that insurance can (or could when we first bought our house) use to insure on homeowner's policy
First one--you live there all the time--might travel but it is your primary home
2nd one -- seasonal -- you are there seasonally-for months at at time but Half or less a year
Some people in FL are seasonal and they come regularly after Thanksgiving and stay til Easter --that's usually 5 mo
3rd--Irregular but something like not more than 3 mo w/o a visit
Episodic I guess
It didn't matter that our daughter lives next door and could come over and check on the house 2-3 times a week--even every day

We probably need to check in and see if our current pattern gets us a better price
We went with the Irregular time frame because husband was not retired full time--we could stay week or so at time for holidays or summer but just weekends maybe other times or I could stay longer...
Now husband is retired and we come for 6 weeks or longer at time--we were there from May to 2nd week in August this summer--plan to be there for Christmas and into January

We had toilet overflow Mother's Day Sunday when we were at the house--and IN the house--and still didn't notice the water until it had done good bit of damage...had to take out baseboards, toe kicks on bathroom and utility cabinets, remove wallpaper (because of mold risk alter), retexture and repaint walls and replace some click-lock LVT in bathroom and utility room...
Took long time to get it all done--guy running the project for rehab company was not too smart or organized...
But the company paid up what I thought was for more than I expected--I didn't expect them to want the wallpaper removed--it seemed like it was holding and water dried after baseboard were removed...but claims agent was afraid mold might grow between wallpaper and Sheetrock over time so wanted it off...
(Older home built in 70s -- wall paper was original but we had painted it over when we bought house)

But that is what they are afraid of--that something will happen to the house when you are absent that will go unnoticed and big repair bill..
The guys who came to do our immediate water damage repair said they were called to condo where people have been back East or on cruise for while and refrigerator water line sprang leak--water all over the house, soaking up the drywall...
They came bach and found mold halfway up the walls...

They tried to claim on their insurance and insurance refused -- said they should have had someone checking on the house while they were out of town...

Last edited by loves2read; 11-28-2017 at 09:45 PM..
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Old Yesterday, 06:40 AM
 
14,481 posts, read 16,281,591 times
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Quote:
Originally Posted by OrganicSmallHome View Post
We just received a notice from our insurance company that they are cancelling our homeowner's insurance because they "prefer" not to insure a property for an out-of-state resident. We don't live in the home full-time, but they knew this when we took out the policy. We've had the policy for 2-1/2 years and have made no claims, nor have we been behind in insurance payments. Any ideas of why they might have made such a decision?
This doesn't have to be a big deal. Find another company. For whatever reason, they have decided to change their policy. They at least notified you.

Contact an independent agent, and they'll hook you up.
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Old Yesterday, 07:10 AM
 
7,772 posts, read 9,523,010 times
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Quote:
Originally Posted by OrganicSmallHome View Post
Risk of what? The house is located in a good neighborhood and has an alarm system. I'm mystified.
Flooding is probably the biggest concern.......nobody home, toilet/washer line breaks and place is flooding for days until someone finds it.
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Old Yesterday, 07:12 AM
 
7,772 posts, read 9,523,010 times
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Quote:
Originally Posted by CGab View Post
What you paid for the property means squat. Market value has absolutely nothing to do with what it would cost to rebuild. MOST homes can't be re-built for $38k.
Yeah but not too many people would spend 400K rebuilding a 38K house either......
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Old Yesterday, 08:20 AM
 
Location: MID ATLANTIC
7,153 posts, read 16,191,883 times
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The first thing I do is tell my buyers of 2nd homes is to start scouting homeowners insurance. We do 2nd home purchases all over the country (not necessarily in vacation areas) that are really Future Primary Residences (it's an occupancy unique to credit unions).

In many cases it pays to have a caretaker in the home. I've had several customers find this solution works well. One couple that purchased in Ohio and put an Ohio State grad student in their home for safekeeping. A home in Brooklyn had a pilot living in the home on Tuesday thru Thursday. The key is finding the right person that won't abuse the position or get in the way with the use of the property. In a world of web cameras (not talking about concealed), it's never been easier to keep tabs. Also, have a written agreement spelling out duties and responsibilities. This could be an employee/employer relationship and not a tenant/landlord relationship. (Really important for "eviction" - contact an attorney in that state to advise you).

If you bought a home as a 2nd home for the rate, but have every intention of renting out the home, your insurance policy is what will trip you up. The policies are distinctly different. If you have a 2nd home and you have tenants there on a regular basis, your claim could be denied. Same for the reverse - a vacant rental property and no attempt to rent with all personal possession in the home.....The insurance adjusters job is to minimize claims paid. If they can find a way around paying, don't you think they will take it? When you switch a home from one occupancy to the other, you may have a grace period. Insurance regulations are just as tricky as eviction law.......consult legal. But remember, every change you make to the policy is sent to your lender.
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Old Yesterday, 08:52 AM
 
143 posts, read 61,853 times
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Quote:
Originally Posted by City Guy997S View Post
Yeah but not too many people would spend 400K rebuilding a 38K house either......
Tiny House people even spend more than that LOL!
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Old Yesterday, 12:02 PM
 
1,333 posts, read 1,259,809 times
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Quote:
Originally Posted by City Guy997S View Post
Yeah but not too many people would spend 400K rebuilding a 38K house either......
Perhaps so but I would not rebuild this house for several reasons, I would just by another 38K or so house!
I am real curious what they would actually pay if the house was completely restored, it is a 3 story brick house. I am sure they would have some reason not to pay me 400K.
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Old Yesterday, 12:07 PM
 
Location: Somewhere in America
11,228 posts, read 8,578,816 times
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Quote:
Originally Posted by arwenmark View Post
I had this same situation, lived 700 miles away. They insisted that we have an alarm system and that we check on the property in person at least 4 times a year.
I expect that having a management company check the property regularly might work as well.

The big qualm I have with Ins. Co. is that while our house cost us 38K they insist on insuring it for replacement cost of 400K. I could buy the entire block for that.
You may be able to buy the block for $400K, but you won't be able to rebuild all of that for $400K. Much like you wouldn't be able to rebuild your house for $38K today. It's probably not just the structure, it's also the contents inside, injury to others - you know some trips and sues you for $300K for breaking their nose. There's a lot more to an insurance policy than just insuring the house for what you paid for it.
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Old Yesterday, 12:11 PM
 
Location: Somewhere in America
11,228 posts, read 8,578,816 times
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Quote:
Originally Posted by LHS79 View Post
Tiny House people even spend more than that LOL!
I've seen those crazy things for $50K - $100K on tv! How exactly is that saving money? You could buy an actual house for that in many areas.And you'd space so you don't get on each other's nerves every 10 minutes.
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Old Yesterday, 12:14 PM
 
Location: Somewhere in America
11,228 posts, read 8,578,816 times
Reputation: 17938
Quote:
Originally Posted by arwenmark View Post
Perhaps so but I would not rebuild this house for several reasons, I would just by another 38K or so house!
I am real curious what they would actually pay if the house was completely restored, it is a 3 story brick house. I am sure they would have some reason not to pay me 400K.
Here's the thing...if your $38K house burns down, you don't get to just leave it a burnt pile of rubble. Part of your policy probably includes clean up and site work. You'd have to clean it up and do site work even if you want it to be vacant land. That's not free or cheap in many areas. They also don't give you a check for $400K and walk away. Frequently, there's disbursements for work done. You need written bids, permits, all kinds of fun stuff! My parents went through all that when a massive tree fell on their house during an ice storm.
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