Insurance woes

[getut]

Ok... I have my nice little 5 acres in the country, and my nice tractor. I've been trying to sell my old house for about a year now. The insurance company is about to pull out of their 1 year grace period for selling a house. Our agent has quoted us vacant dwelling insurance with the cheapest being $1700 a year, with a 25% of what is left penalty if dropped early.

My response? Over my dead body. I'll let it lapse before I pay that outrageous rate. If the bank tries to force me to pay it, then they'll get some hardball of their own. I'd let them have the old house back... I'm where I want to stay for the rest of my life now... I can deal with 7 years bad luck err credit at this point and not even flinch.

I have a hyperactive morality thing... I believe in paying people where they're due (among many things). My hyperactive morality makes me go to lengths to do things and be an upstanding person that some may find pretty stupid.. but it works the other way around too... I would do damage to myself (credit) before I let someone yank me around like this.

The little /forums/images/graemlins/mad.gif symbol doesn't do this justice for me. Is there anyone out there in the know... are they trying to "you know what" me? Can anyone recommend something? This has to be a huge ripoff attempt. Fire is the biggest insurance claim and fire is MANY MANY times more likely when someone is LIVING there. Argh.

Help me please.

 

[JimR]

My insurance company tried to do this to us also. We only beat it becasue the house is next door to us and I'm over there twice a day. Otherwise we would have either had no insurance or a higher rate. I too think they are crooks. How about renting it out with the stipulation that the people have to leave when it is sold. You would also be making money on it while it sits idle.

 

[getut]

I have asked my agent what the minimum requirement is to make it non-vacant. I would file separation papers from my wife and move in in a sleeping bag until the thing sold.

I would pay slight amount more just to not have the hassle, but they'll not get a penny out of me if the insurance company tries this junk.. over 3 times what the regular homeowners policy was. If the bank tries to FORCE me to pay it, then they won't get any money either.

I probably shouldn't post any more about this until I calm down some.

 

[tomnky]

When we sold our previous home, We were getting close to going on high risk because of that home being vacant.

The quote I received at that time was over $ for three months,Non-refundable IF it was sold before that ran out.

Luckily State Farm agreed to cover for three more months only because We had a contract on it. It sold before that time so We did not have to pay that outlandish rate.

 

[Bird]

Robert, to the best of my knowledge, what you've encountered is quite normal in other states, too. In other words, I wouldn't like it either, but I'd expect it. And while a fire might result in the largest monetary claim, burglary and vandalism are the most likely events to occur to a vacant house. In fact, burglary and vandalism are so common at vacant houses that I can at least understand why the insurance companies charge much higher premiums than for an occupied home.

 

[riptides]

Can you rent it to a family member?
Or advertise it as rent to own?

How will the insurance company know it is vacant? If you get my drift...


Don't take a chance on your good credit rating, you never know... that may be a serious hassle for you in the future. It is hard enough keeping a good rating. Don't chance that.

-Mike Z. /forums/images/graemlins/grin.gif

 

[getut]

Thanks for the support.. all of you.

I may have an option available now. The agent offered simple liability and a separate fire policy that together may end up being only about $50 more than the old homeowners plan. It covers almost nothing, but at least it satisfies the bank.

I talked to them a little while ago and they weren't sure they would be able to, but they said they could find out details monday. We're keeping our fingers crossed.

 

[Junkman]

</font><font color="blue" class="small">( ........ If the bank tries to force me to pay it, then they'll get some hardball of their own. I'd let them have the old house back... I'm where I want to stay for the rest of my life now... I can deal with 7 years bad luck err credit at this point and not even flinch.

.................. )</font>

Lets look at this rationally. The bank never owned your home, they loaned you the money to purchase the house and you signed a contract with them to pay back the money over a specified time period and to maintain insurance on the home until the loan was paid back. If you let the insurance lapse, they will place insurance on the dwelling and just add the cost to the balance of the mortgage. If you don't pay the monthly mortgage payment, then they will foreclose and sell the property. If the property doesn't sell for enough money to cover the costs involved and the balance of the mortgage, they will come after you for the balance. They might even place a lien against your present property or ask the court to garnish your wages. Now, if you feel comfortable with that happening, let the insurance lapse and stop paying the bank. I suggest that you go back to the original papers that you signed when you made the purchase for this home and read what it says. You will be unhappily surprised as to what the banks remedies are.
As far as the vacant home being insured, if it is vacant, they you are not eligible for a homeowners policy on the building and property. Homeowner policies are for your primary residence insurance needs. You can get a fire policy that will cover the house for this one peril. You will also need a liability policy on the property. If you rent the property, then you will still need these two policies, but the cost will be less than if the house is vacant. If it hasn't sold in almost a year, then I suggest that you try to figure out why. Is it over priced or in poor condition? Sometimes you have to take less to move it. If the agent has been diligent in showing the home, then you should have had some offers. If you haven't had any offers on the home, then it is time to find a new agent. I know that these are harsh words to put into print, but they are honest words. I am not trying to anger you, but put things into perspective...... Something that the real estate agent should have done a long time ago.... Junk...

 

[getut]

No offense at all Junk...

We've already changed agents one time, and both the old and new agent, as well as our bank loan office say that we are asking an appropriate amount for the house. We have reduced it twice and had it reappraised once. The appraisal came down due to the depressed housing market in our area. The average time to sell in our area was 6 months when we first listed the house. The average for this area is now 9-10 months.

The money to pay it is not the issue, we can do it... it is just that it amounts to legal robbery enforced by the bank. I'll be filing separation papers from my wife and live in a sleeping bag there 3 nights a week before I pay that. I'm still waiting to see what shows up monday though.. This will sound weird, but hopefully they got me bent out of shape for nothing. /forums/images/graemlins/crazy.gif

 

[riptides]

And I don't understand this vacant stuff.

Are you not paying the mortgage? How is the insurance company defining vacant?

My farm house sits vacant for over 16 hours a day, my other house sits vacant for over 12. Do I live in both places, yes. Can I be in both places at once? Well sometimes I wish I could be. /forums/images/graemlins/grin.gif

Bah - on the insurance industry when it gets this nit-picky.

-Mike Z. /forums/images/graemlins/grin.gif