 Vacant home for sale carries insurance dangers
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 Dear
Real Estate Adviser,
My husband and I will soon be moving to Canada and it looks like
our house for sale in Colorado may not be sold by then. Therefore
we'll have to leave the house empty until it sells. Are there companies
that insure vacant homes? For how long can they be insured?
-- Denyse
 Dear
Denyse,
This has become a stickier problem in the last year or so as more homes languish on the market for far longer.
Insurers in general don't like to cover vacant homes.
That's because such occurrences as theft, vandalism, fire and water
damage are far more likely to happen in vacant houses than occupied
ones and the resultant damage is more likely to be worse because
no one is around to report it or stop it.
With most insurers, once a house becomes vacant --
meaning that occupants have moved out with no intent of returning
and no new occupants have taken residence -- for a period in excess
of 30 consecutive days, then all coverage ceases. However, some
insurers will grant you a "vacancy permit," providing
that you request it before those 30 days expire. Such permits will
provide you most of the coverage you previously had, but will not
protect the house against such things as malicious acts, glass breakage
or water damage.
An insurer is by no means required to grant you such
a vacancy permit, and if it does, the policy will cost you a hefty
premium and generally be good for only three months.
That said, some major insurers and surplus-line insurers
do offer vacant-home insurance -- for a stiff price, of course.
Call around and do a Web search. Those same insurers may cut you
a rate break if you have a central alarm system for fire and theft,
have had deadbolts locks and smoke detectors installed, and have
winterized your home to protect plumbing from freezing temperatures.
Arranging for someone to come by regularly to check on the place
also is likely to earn you a lower premium.
Knowing that home-insurance companies will drop coverage
upon being informed of a home's vacancy, some industry practitioners
go so far as suggest you just wait until you've closed the sale
to say anything to your insurer about the change in status. While
this strategy might sound sensible, there are two problems with
it: First, it is borderline fraudulent. Second, if the place is
damaged or destroyed while vacant, the insurer would likely challenge
the claim anyway -- and you'd lose far more than just a potential
buyer.
But there's one gray area you might explore, should
all fail.
Since there are two of you, you might consider leaving
some of your furnishings and other items in the house and returning
to the house for a short duration each month. The place will look
lived in, you will be able to check up on it more readily and you
will not be leaving it unoccupied for 30 consecutive days. Granted,
this is not always practical for some couples, particularly if you
both work. Perhaps you have a relative or close friend who can occupy
the house at least part of the time.
And try to arrange for a neighbor to park in your
driveway to give it more of a lived-in look when you're not there.
Better yet, I hope your house sells soon and you don't
have to worry about it. Good luck.
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