Just about every homeowner has some type of insurance policy covering their home. Even though all homes have it, few people understand exactly what is covered and what is not under non-standard circumstances such as if the property is vacant or if there is a flood.
The following was taking from various surveys and random samplings of homeowners across the country:
If you are leaving your house empty or unoccupied, having a friend or relative drop by to look in on the house every Tuesday for example, will not satisfy the terms of your existing homeowners insurance. If they would normally deny a claim because the house is vacant or unoccupied, the fact that you demonstrate a neighbor was there to look in on things will not change the situation! We think having someone look in on the house is important, but it will not help keep coverage on the home.
Homeowners outside of an earthquake zone such as California, generally did not know they do not have earthquake insurance protection in their homeowners insurance policy. (Earthquake protection away from the West Coast is generally easy to add onto a insurance policy as a rider, and the cost is low.)
More than two thirds of homeowners did not understand they eventually lost coverage on the home if the house becomes vacant or empty.
Almost half of the homeowners did not realize they do not have "flood insurance" included in their standard HO3 or HO5 insurance policy. (damage from rising waters is almost never covered in a standard home insurance policy. Some insurance companies will add back in flood coverage for additional premium. For those that live in a "flood zone" and the insurance company is unwilling to provide the coverage, the U.S. National Flood Insurance Program is available).
Over 80% of homeowners did not understand there is a provision in the insurance policy that allows the owner to take action and spend money (that will later be reimbursed) just after a claim in order to avoid additional loss. (The best example of this would be a $200 expense to buy tarps to lay over a hole in the roof to keep the house from getting wet in a rainstorm).
Over 80% of homeowners do not understand the liability insurance attached to the homeowners insurance policy and how it protects the homeowner's financial net worth and that of the policyholder's family.
Over 80% of homeowners do not understand what a valuable article is, and that items with a high worth, or unique nature (like jewelry, art, or antiques) need to be declared in value with an appraisal or the full value will not be reimbursed by the insurance company in the event of loss.
Over 70% did not know they needed to do anything regarding their insurance coverage if they were having a friend or relative live in the house while the family was away. (In these cases a landlord, or a landlord / tenant policy is almost always necessary).
Do Not Rely on your Existing Insurance Policy if Your Home Is Vacant
If your home is vacant for any length of time, it may not be covered under your existing insurance policy. Rather than trust your home will still be insured, following is a list of steps to follow with your insurance company to make sure you have coverage.
Reasons for Vacant Home Insurance
Vacant home insurance is a specialty type of insurance not typically provided by traditional insurance carriers. This article explores the reasons why vacant dwelling insurance is only underwritten by specialty providers and why many traditional insurance companies won't take a risk on the insurance liability.
The Link Between Kitchen Backsplash Tile & Subway Tile
When choosing the right backsplash for your kitchen remodeling project, the tile you choose should accent your kitchen, but more importantly, be very easy to clean. An unlikely reference for easily cleanable tile is subway tile. This type of tile is characteristically very easy to clean and virtually grout free, a perfect tile concept for your kitchen backsplash.
