Insurance Education :: Uninhabited or rented homes get different insurance coverage

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Released: August 10, 2010

Uninhabited or rented homes get different insurance coverage

Source: Sandra Block, USA Today

n many neighborhoods around the country, “for sale” signs outnumber telephone poles, and some of those signs are looking awfully weather-beaten. Even owners of oceanfront properties are having trouble finding buyers, at least at a price that will cover the amount they owe on the home.

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.

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