Most home owners do not realize they run the risk of not having insurance for their home because their home has been vacant more than 30 days during the sales process or while putting tenants in place. Here are some things to watch out for.
Vacant homes: In Arizona, when a home is vacant more than 30 days the existing home owner policy no longer covers losses on that property. It is important your clients understand they need to purchase a vacant home policy to keep protection in place. When a vacant home policy is purchased, it is important to know if the policy covers theft of property not attached to the home and if swimming pool liability is covered under the policy. Many policies do not cover these two items.
Rental Homes: When a homeowner switches a home from their primary residence to a rental unit, it is important to switch the homeowner insurance policy to a landlord policy. I now have a Landlord Policy that insures the home up to 90 days of vacancy, not just the standard 30 days. This is an excellent policy for property managers who want the peace of mind knowing they will not be held responsible for a lapse in their client's coverage.
It is also a very good idea for landlords to require their new tenants be covered by a renter's policy. A good renter policy will not only protect the renter from loss of use, theft, and liability, but will also protect the landlord if the tenant is responsible for damage done to the property or is responsible for personal injury to others while on the property.
Condos: A common misconception with condos is that condo owners do not need to cover insurance on their unit because the condo association covers insurance on the property. In reality, the condo association only covers the outside building shell most of the time while a condo policy protects from the studs in plus personal possessions.