If your home is uninhabited or rented, insurance coverage changes
In many neighborhoods, “for sale” signs rival the number of telephone poles, and some of those signs are looking weather-beaten. Even owners of oceanfront properties are having trouble finding buyers, at least at a price that will cover the mortgage.
One way around this problem is to stay put until the economy turns around and the housing market recovers.
But if you’ve lost your job and need to move to find employment, that’s not an option. Even if you’re lucky enough to find a buyer, closing the deal could take weeks or even months.
In the interim, it’s not enough to ask your next-door neighbor to keep on eye on your property until the new owners move in.
You should also contact your insurance agent, or the company that provides your homeowners insurance.
Standard homeowners policies are designed to cover homes that are occupied. If you leave your home uninhabited for a month or longer, your policy may not cover damage or losses, says Michael McRaith, director of the Illinois Department of Insurance.
You could also expose yourself to lawsuits, McRaith says. If a child gets hurt while playing on your property, your insurance may not protect you from liability, he says.
Full story is available on Seattle Times

Posted August 20, 2010
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