We got hit with a $12,000 insurance bill just for trying to sell a house… Here is what happened. Once the house was empty, our insurance company reclassified it as vacant. Vacant homes are considered higher risk, and insurers often reduce or remove coverage for things like theft, vandalism, or water damage. In our case, they treated the property like it was abandoned, not like a nicely staged home ready for showings. I had to call our agent and argue. Eventually they lowered the bill, but the warning was clear. If you are selling your house, your coverage may change the moment it is no longer occupied. Many policies trigger vacancy rules after 30 to 60 days. The lesson: If you are listing your home, call your insurance company first. Confirm what their vacancy rules are and what coverage you will have while it is on the market. A two-minute phone call can save you thousands of dollars and a lot of stress.
Will VanDuzer
1mo
This is very true! I think ours had a 60 day policy on it. We just converted to a Vacancy policy and its quite the jump! They consider this more of a risk than a renter policy.
California Public Adjuster#2B53445, Appraiser, Umpire incl. court appointed. Residential & commercial losses. Fire, water, flood, theft, vandalism, business income. leland.coontz@gmail.com (714) 724 1767
4wSomething doesn't add up here. You're saying the house was "staged" but your carrier decided it was vacant? If the home had furniture, especially mattresses, the case law in most states is the home would be considered "unoccupied", not "vacant". That's how it works in California where I do most of my work. It's very likely your carrier's underwriting department didn't understand the distinction between vacant and unoccupied. Many adjusters don't. One of the interesting quirks about insurance claim adjusting is how often adjusters will backpedal on this issue once it's explained to them, my presumption is they check with more experienced management or perhaps legal counsel and come to their senses very quickly. I've even had them aplogize. I've seen claim denials get reversed on this issue within a couple of hours.