this video is for my homeowners, business owner, realtors, or landlord who are looking to sell or rent a house. In periods of economic slowdown or inflation it is really important to keep in mind that if it takes a very long time for your house to sell that could impact whether your house is insured. (You can check out the video I made about this at the bottom of this article.)
What do you notice about these two buildings? What do they have in common?
If I add the small detail that they both have been on the market for more than 60 days, these two places are vacant, in insurance lingo. Homeowners insurance policies have a little known detail regarding “vacant” homes. A home or dwelling is considered vacant if it has been uninhabited, has no fixtures or furniture, or is empty for more than 60 days. Many insurance carriers use the ISO homeowners coverage form which will have this interpretation of vacancy.
The problem with a house or dwelling being vacant for more than 60 days is that the insurance carrier will most likely not insure that property for perils that would normally be covered if the property were not vacant. A peril is something that caused a loss to occur.
There are several important perils that tend to occur when a property is vacant: theft, vandalism, and fire. These perils could come about due to copper theft, broken glasses or graffiti or unintentional fire.
It is important to make sure you have the right type of coverage or endorsement. Typically the vacancy permit endorsement is used. This endorsement removes the coverage restrictions that would normally occur if a property was vacant for more than 60 days or some other period.
If you need help with your homeowners insurance coverage or if you have questions feel free to reach out to me. 504-256-3048 or mike@mwalker