Insurance On Vacant Rental
I purchased a home 11/07/03 with a tenant. I got the standard landlord insurance policy. Well, the tenant moved out right before Xmas. I have had a hard time renting the home and now I realize that I am not covered by my insurance since it has been vacant for more than 30 days. I can buy vacant building policy, but would it be OK to keep my other insurance in place. It is worth the $30 or so a month I would pay for the landlord policy to not have to cancel and then get a new policy written. Would I be in trouble of having no coverage because there is multiple policies in place.
BRenda
Your method is one method. There are a few others.
I make a point of being very friendly with my insurance agent. I play poker with him and let him win a few. I deliver cookies to his house when he entertains. I write his papers for him and on occasion I lie to his wife, when he really looses it at pocker. I even help him buy the occasional present so he can get back in the house when he really screws up.
When I have your problem. I call him and tell him to cover me which he does. Sometimes I actualy pay and then on the small ones I do not. If he thinks it is necessary he writes me a temporary policy which carries me throught the time that we are repairing a house or upgrading it for sale or just holding it for the right tenant.
I suggest you begin to establish your support persons. Insurance, various trades, like plumbers, roofers, concrete men etc. etc.
Cheeers Lucius
Your agent can tell you anything he wants. Agents love to be nice guys to get the business, but when you need to file a claim it is the policy and the company adjuster that he writes for that matters. Are you getting binders for coverage and how does the company mail you a policy when they have not received their payment?
Quote:When I have your problem. I call him and tell him to cover me which he does. Sometimes I actualy pay and then on the small ones I do not. If he thinks it is necessary he writes me a temporary policy which carries me throught the time that we are repairing a house or upgrading it for sale or just holding it for the right tenant.
What kind of insurance is he covering you with? Most vacant policies are not refundable and few companies write them.
Insurance must be very different in FL than CA.
Brenda
Brenda,
Get the policy and get it in writing. Some "landlord" policies have different definitions for "vacant" and "unoccupied". 30 days may reduce certain coverages, but I haven't seen too many contracts that drop the coverage completely after 30 days. If you are on a personal-type dwelling coverage, the clauses and definitions may be different still. Lufos is right in addressing the need for an insurance "team member", but make sure they really know what you are doing by keeping in written communication (email is great, because it gives you inherent documentation).
Hope this helps... Good luck. Tim
In 2001, I purchased a HUD foreclosure that needed a lot of rehab to put it in rental condition. My friendly insurance agent (who has written all my insurance business in the area) gave me the standard landlord policy with a 6 month vacancy rider. The rider only cost me $50 extra in addition to the basic insurance premium.
I suppose he was able to do this because I assured the agent that my general contractor would be starting repairs very quickly, someone would be in or visiting the property at least every couple of days, and that as soon as the property was rent ready, it would be tenant occupied without undue delay. I suppose all this activity in and around the property reduced vandalism risk and made my "vacancy" rider so cheap.
By the way, while the rider had a six month term, the premium was quoted for any period up to six months. In other words, no prorated refund when I had the unit occupied in 45 days.
DaveT--Do you mind PM'ing the name of the company the Agent used? (If you don't want to post it). Thanks! Tim