Vacant Home Insurance now (.com) saw a massive influx of empty and unoccupied houses in 2009 due to the current economic conditions. The trend is not expected to decrease in 2010 as the amount of homes that sit on the market that cannot be sold is not decreasing in most real estate markets in the United States.
Vacant home insurance is needed when a seller of a home has moved out, and the home has been unoccupied for over 60 days in most instances. What’s more, most sellers do not think there is any problem with this situation and do not even inform their existing homeowners insurance company that the house in vacant! The big homeowners insurance companies don’t do a good job informing clients that they are not going to insure empty homes either. People are caught off guard.
What we see is homeowners finding out they need vacant home insurance by accident, contacting the existing insurance company due to a change in conditon or to respond to an inquiry at renewal time, and even to report an address change.
“When they make this call the last thing they expect is to be cancelled.”
It’s at that time they are given the word they are being cancelled and told the existing homeowners insurance company cannot provide vacant homeowners insurance coverage.
21 Jan
Posted by: Admin in: Home Insurance
The severe earthquake that hit Haiti a little over a week ago reminded the Insurance Information Institute (I.I.I.) of the vulnerability of many drivers and homeowners who are more underinsured than they think.
According to the institute, having standard auto or homeowners insurance may not be enough if an earthquake hits, they may also need some form of earthquake coverage.
We have some great articles that address the basics of earthquake insurance, what it covers, and whether you need it. However, to sum it up, earthquake insurance is a type of catastrophic policy that is usually added to a homeowners or auto insurance policy. Without these additions to your policies, you won’t be covered if damage is incurred after an earthquake. It’s for this reason that III is encouraging home and auto owners to pick up this additional coverage.
According to III, the vast majority of homeowners who live in seismic zones do not purchase earthquake insurance. The same goes for those covered by auto insurance policies. Because the United States has several faults, the threat is always there for an earthquake, which is why III suggest getting as much financial protection for your personal property as possible.
To get your hands on an earthquake policy, it’s good to talk with your current homeowners or auto insurance company. If you don’t have one or either, now’s the time to shop for auto and homeowners coverage, don’t you think?
Your home warranty?s worth depends greatly on the statement in the insurance contract. There are two kinds of warranties. It is the new home warranty and the existing home warranty. In a new home, many builders will offer a homebuyer a warranty, which is usually good for ten years coverage on the home structure. Some have their own warranties while still others use a third party company. Whichever you choose, the home warranty defines items that are covered and outlines a method for repair requests should there be problems.
A buyer or seller of an existing home may buy a one-year warranty that is the same as an extended contract of service. The home warranty normally costs from $350 to $600 and generally covers only the electrical and mechanical components of your home such as the furnace, appliances and the air conditioning. If something is not working, the company will then dispatch a local contractor to fix it and the homeowner will be required to pay a minimal amount only for repairs done. If the repair falls under the warranty coverage, then it is the only expense to be incurred.
You might wonder if home warranties are worth the investment. A home warranty is not automatically a blanket protection and could sometimes be quite tricky. There may be a misunderstanding of what is actually covered and what the homeowner believes to be covered. For instance, a one-year warranty of an existing house may cover problems on the hot-water heater but do not cover anything that is caused by rust or poor maintenance. Hence, when the water heater gives in and the repair person finds rust, you may be charged to pay the bill yourself.
The key factor is to read and comprehend the contract to find out the extent of the coverage, its duration, claims and be aware if there are deadlines. As a homeowner, make sure that you know the entire coverage. Many warranty companies do not cover those that are outside the foundation of the home, which includes the septic tank. Despite additional septic tank coverage, most companies do not cover the cost of replacement of the septic system or the leach field. Septic coverage is only for a year and is non-renewable.
Furthermore, home warranties do not cover the vents, ducting and heating. It only covers the basics such as heaters, home appliances and plumbing that is within the house. Deciding what kind of policy to buy is a bit confusing and as a homeowner, you should consider carefully. The coverage differs from company to company. Make sure to inquire of a good one from satisfied customers and ask for a comprehensive list of coverage. Ensure that you are aware of your rights when making claims.
The importance and worth of a home warranty will depend on the choices and priorities of a homeowner. If you believe that the coverage meets your needs, then purchasing one is a good choice. Another thing to put into consideration is the renewal of the home warranty after it has expired. As a homeowner, be careful to weigh your options before you purchase.
One of the very important insurance policies that a homeowner must be familiar with is the homeowners? insurance. Even if several banks require it when you avail a mortgage, this insurance policy will truly protect homeowners from being caught in trouble in the future.
The standard homeowners? plans take charge of the damages done by disasters like falling trees, broken pipes and other unexpected circumstances. Strong winds are covers unless the house is situated in an area that is normally hit by winds. Homes in coastal areas are good example of this. If you are staying in these places, you will have a homeowners? policy that can protect you and you need to get another plan for this.
Other kinds of natural disasters like floods will not be included in the coverage. Normally, if the house is in a flood-prone location, the homeowner will need to get a flood insurance plan separately. Damages because of insufficient maintenance of the house will not be included in the coverage. Like for instance, if the homeowner does not give enough protection to the wood siding, you will have to shoulder the cost for the replacement once it is worn out.
Structures that are not part of the building like sheds and garages are normally not part of the coverage. In other cases, the policy for these structures can avail 10 percent of the amount of coverage on the main structure.
Moreover, most of the homeowners? policy takes charge of the homeowner?s personal things inside the house. Thus, if an incident happens, aside from paying for the replacement of the entire house, the holder will also be paid so he can replace them. Usually, personal stuffs can get 50 to 70 percent of the entire coverage of the building. In addition to that, majority of insurance plans will include the things that are outside of the property. This is termed as off-premises coverage. Thus, when something is robed from the house while you are not around, the insurance company will provide you funds to replace them.
The standard homeowners? insurance plans will also cover the value of your landscape in the house. Things like trees and shrubs are part of the coverage. Lightning and fire are in but wind or blight is out. These things can get 5 percent of the coverage of your house.
The most important thing that a lot of individuals are not aware of about homeowners? insurance is liability protection. If you are sued because of the damages done to other party?s property, homeowners? insurance will be liable for the incident. The coverage can begin from $100,000 and can reach up to millions.
Overall, the insurance policy does not only include the cost for reconstructing the property when accidents occur, but it can also include more that anything you can think. Hence, do not fail to get one for yourself and choose the right plan for you.
A number of homeowners are suing insurance companies over inadequate Chinese drywall claims.
The drywall issues, which were found nation-wide, resulted in corroded plumbing and sick home dwellers. While thousands of homeowners are known to have been affected by the defective drywall, so far over 700 homeowners have filed a federal lawsuit, seeking indemnification for their losses.
A New York-based law firm, Anderson Kill & Olick, P.C., is representing homeowners who feel that they’ve been mistreated by their insurance companies. According to the complaint, the plaintiffs seek “a declaratory judgment that the insurance companies and the subcontractor insurance companies are obligated to indemnify the losses arising from claims against WCI Communities Inc. and certain of its subsidiaries for the development and sale of homes allegedly containing defective Chinese manufactured drywall.”
WCI Communities Inc. is one of the companies that contracted to build homes and residential communities in states affected by the drywall, including Florida, New York, New Jersey, Virginia, Connecticut and Maryland.
Complaints in the case, according to the lawsuit, include:
The plaintiffs in the case are seeking damages in an amount to be determined at trial, as well as pre- and post-judgment interest, attorney’s fees, costs and other relief that the court deems proper.
If you live in a home or condominium that was built after 2000, it’s a good idea to contact that Chinese Drywall Complaint Center for more information. A warning sign that the center lists if having black copper or discolored wiring combined with:
If you have been affected by any of these issues, it’s time to connect with the center to determine whether this drywall is in your home.
Have you filed claims over inadequate drywall? How did your insurance company handle it?
12 Jan
Posted by: Admin in: Home Insurance
Last week it was revealed that according to FEMA’s new flood map, a few thousand in Southern California would be required to acquire flood insurance; however, FEMA has now announcedthat some of those residents don’t live in risky areas after all. The news comes as a relief to many residents who would have been on the hook for an additional insurance policy effective immediately.
According to the new flood map that FEMA drew up recently, thousands in the Southern California area would said to suddenly live in flood-prone area – even those who lived no where near water.
In total, residents in over 150 cities and unincorporated areas would have to purchase flood insurance in addition to their homeowners insurance in case a flood hit the area, which could have added as much as $500 to $1,700 to their policies per year.
This did not sit well with many homeowners, some of whom decided to fight the new flood map designations.
After FEMA decided to review its new topographic data, it decided to remove 876 parcels in the Parks Mesa Heights neighborhood. According to the agency, it included this area in the high-hazard zone mistakenly.
There are still just over 2,300 residents, however, who will be obligated to purchase this insurance if they are on the map and hold a federally-backed mortgage.
Dozens of homeowners are still protesting that FEMA relied on faulty information while updating its maps. Some activists in the area still think that FEMA should remove the other properties in the area from its list since the data it is using is outdated. A spokeswoman for the Public Works Department is seeking a grant to pay for detailed analysis of the broader flood zone in hopes of further revisions.
Were you one of those messed up by FEMA? Tell us your story.