Today we’re going to talk about vacant home insurance.
Did you know that NY insurance carriers discontinue coverage on a home if it becomes unoccupied for over 30 days and new residents have not moved in? (Unless you’ve previously disclosed the house as seasonal).
Well if you didn’t know, now you do.
This clause in NY home insurance and dwelling fire insurance policies is of special concern in today’s New York real estate market. I don’t how fast houses are selling where you are from but in Albany, NY every month the “Average Days On the Market” number gets bigger and bigger.
Those of you that are eager to get out of your current home and into some different need to take special care and contact your local independent insurance agent.
This is no joke people.
If you move out of your current home and into a newly purchased home before you sell the old one and you do not notify your NY insurance agent that the old house is going to be vacant your NY insurance coverage will Lapse in 30 days.
This also goes for homes that are under construction.
If you are having major restoration, remodeling, or construction done to your home which will take more than 30 days and during that period you will not be living in the home, you need to contact your independent insurance agent.
What To Expect From Vacant Home Insurance Policy
First things first because I know whats on your mind.
Yes, your premium is going to be higher with a vacant home insurance policy then it was with your NY home insurance policy otherwise.
Every vacant home insurance policy is going to be different, as different NY insurance carriers are willing to take on vacant home risks.
Some vacant home insurance policies may be valued using Actual Cash Value instead of Replacement Cost. Others may not provide insurance coverage for malicious mischief, theft, and/or vandalism.
Its important to sit down with your agent, {you can call us at (518) 456-6688} and discuss the different options you have available for your vacant home insurance need.
Ways to Reduce Premium on Vacant Buildings
- Central Station Alarm Installed and Active
- Deadbolt Locks on Every Door
- Smoke Detectors
- Winterize Building to Protect Against Pipe Burst
- Monitoring Service That Will Check on Building
- Board Up Windows
The Rub
Don’t believe the hype that there are no NY insurance carriers that want a vacant building. Relatively speaking, vacant homes are not that expensive to insure.
Finally, I promised a new friend of mine that works at foremost @jeffbair, (which is an insurance carry we use to write vacant home insurance policies), that I would post a rather amusing video he created about Foremost products, including vacant homes.
So enjoy this video…
Image courtesy of sattva / FreeDigitalPhotos.net