Empty House or Renting Out House
As life's circumstances change, so do our homeowners insurance needs. Often, a job or relationship change can result in the change of the occupancy of the home. A homeowner may determine the best course of action for them is to rent their home, or leave it empty while it is for sale. Most do not realize that there can be consequences for the homeowner's policy.
A typical homeowner's policy requires that the property owner reside in the home. Once the property is rented out, a dwelling fire policy becomes necessary. Even if a family member is living in the home, the policy will have to be rewritten as a rental property whether or not you collect rent. If the property is not owner occupied, and a claim occurs, there can be coverage issues which may result in a denied claim.
Another common occurrence is when a homeowner leaves their property empty. Perhaps they have to move away for a job opportunity, or have purchased another home and are waiting for their prior home to sell. It is important to discuss this change with your agent. Again, if a claim occurs, there is a good chance the claim will be denied due to the vacant home. A new policy will need to be written that reflects the status of the home as vacant in order to ensure you are covered.
It is a good idea to discuss your options with your agent prior to coming to a decision. More than likely, a vacant home policy will be much more expensive and will offer very limited coverage. Depending on the price, you may want to consider making other arrangements for the home