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What If My Home Is Vacant Or Unoccupied?
First,
there IS a difference. Webster's Encyclopedic Unabridged Dictionary
of the English Language has the following to say:
Unoccupied:
without occupants, but not devoid of furniture or other furnishings.
Vacant: having no tenant or contents; empty, void.
The difference
between the two is a matter of time and intent. While not
being occupied is a temporary condition and an exception to
a residence normally having occupants, vacancy generally represents
abandonment of property. So what's the point? Well, either
condition may affect your coverage under a typical homeowner
policy. It is quite important to understand the consequences
of either condition in order to keep your coverage intact.
Peeking At A Homeowner Policy
Generally,
a homeowner policy has a couple of areas that may be affected
by a home's occupancy status: damage caused by freezing, or
certain property and loss due to vandalism. Let's talk about
them in detail.
A homeowner
policy usually protects a home from any loss that is caused
by a frozen:
- plumbing
system
- heating
system
- air
conditioning system or
- appliance
Example
1: Fern Guddyson and her family leave their home in Minnesota
in January. They'll spend the next 10 weeks in Miami because
Fern is teaching a graduate course in Zen awareness at Palm
Leaf University. During a bitter cold spell at their home
at the end of March, the water line to their refrigerator
(for its ice-maker) freezes and breaks. Later, when the line
thaws, it overflows and, eventually, soaks all of the home's
oak flooring and carpets. Fern makes a claim to her insurer
when the family returns home from Miami. The insurance company's
claims department rejects the claim when they find out the
home was unoccupied for more than 30 days before the loss.
Unfortunately
for the Guddysons, most homeowner policies will not cover
freeze-related losses that occur during an extended period
in which the home is either vacant OR unoccupied. But this
loss of coverage can be avoided if the homeowner takes precautions
to help avoid such losses. Precautions usually involve either
draining any systems or appliances of water and shutting off
the home's water supply, or by keeping the home heated during
the absence. Freezing
A homeowner
policy typically offers protection to a home that is damaged
by acts of vandals. with an important exception. Let's visit
the Guddysons again.
Example
2: Fern Guddyson and her family leave their home in Minnesota
in January. Again, they'll be in Miami for the next 10 weeks
while Fern gets her doctorate in surfing from Palm Leaf University.
A week before the Guddysons return (in late March), a group
of kids break out most of the windows in the home. They then
take a variety of tools found in Mr. Guddyson's toolbox and
smash doors, floors and walls. Fern makes a claim to her insurer
when the family returns home from Miami. The insurance company's
claims department estimates the damage and gives Fern a check
to cover her loss.
Typically,
vandalism losses are covered even during periods of extended
unoccupancy. However, if the Guddysons had emptied their home
of all furnishings and turned off the power for the time they
were gone, the vandalism loss would not have been covered.
Why Are Such Exclusions Necessary?
Homeowner
policies contain such exclusions in order to avoid special
loss situations. A vacated home becomes an attractive nuisance,
often attracting acts of vandalism. If a home is to be vacated,
it may be necessary to purchase dwelling fire coverage to
protect the home. In regards to loss caused by freezing, insurers
want to encourage homeowners to do a little planning in order
to reduce or eliminate the chance that a system or appliance
causes a loss. If an insured refuses to act responsibly toward
their property,
they risk the chance of an uninsured loss.
If you're
facing a situation in which your home will be unoccupied or
vacant for an extended period, talk to your agent and make
sure you do whatever is necessary to preserve your full insurance
protection.
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Martinson
Insurance
518 Hawthorne Street • PO Box 8
Alexandria, MN 56308
Phone: 320-763-6518
Toll Free: 800-757-6518
Fax: 320-763-5546
E-mail: agency@martinsoninsurance.com
Web: www.martinsoninsurance.com
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