The cooling real estate market has presented a new insurance danger for homeowners, [tag-tec]vacant houses[/tag-tec].
Sometimes the property owners must go ahead and move; leaving their unsold houses still on the market. This can get tricky with [tag-self]insurance[/tag-self] companies.
Homeowners and real estate investors need to be aware of this potential insurance trap.
Often homeowners as well as real estate investors think they are covered when actually they aren’t.
So what happens when the pipes freeze or the house burns down?
Best advice is to review your policy now to see exactly what is, or is not, covered.
For example, does your policy extend for more than 30 days after you have moved?
Can you buy more insurance just for the vacancy? If so, how much more will it costs?
Will the insurance company give you a price break if you have an alarm system, deadbolts, and smoke detectors?
This can be a potential minefield for savvy real estate investors too who know the inside of real estate investing well. Even the professionals can sometimes trip up on lack of complete property insurance.