Insurance woes

[Junkman]

Skip the separation papers and just put some furniture back into the house and a bed. All you have to do to be considered occupied is to sleep there one or two nights a week and have some mail occasionally delivered. This unoccupied house situation is nothing new and neither are the high insurance premiums. I went through the same thing when my folks moved to Florida in the late 1960's and my mom wanted to keep the house until she was sure that they liked Florida. That was for another 10 years! I stayed in the house a couple of nights a week and there was mail and furniture in the house..... not much, but enough to indicate that someone lived there. A loaf of bread in the refrigerator also would help keep the illusion going. It worked for us for 10 years after learning about the empty house rule. I know of a family that went to Disney for two weeks and just before leaving, the daughter went up stairs to use the toilet. For some unknown reason, the tank cracked and was not noticed. While they were away, a neighbor noticed water cascading out from under the front door. I have no idea what it cost the insurance company to repair that damage, but it took several months and everything had to be stripped back to the bare studs. That is just one reason why insurance companies don't like vacant homes.

 

[Jeff396]

That reminded me of this oldie but goodie....

Jeff

 

[Junkman]

notice the AAA sign in the garage???? He no doubt has it covered..... /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif

 

[Robert_in_NY]

Another reason insurance is higher on vacant houses is because no one is there if something happens like a leak or broken water pipe. The last thing the insurance company wants is a huge bill because the roof leaked for a year or so and ruined half the house. The worst thing for a house is to sit vacant. You would be amazed at how fast a house can fall apart if neglected. I see it and deal with it every day.

As for the insurance, either pay it or fight it. The way insurance companies are now this is what we all are going to expect. The insurance companies keep charging more and more to cover false claims, junk lawsuits and to just plain protect them from more junk lawsuits that haven't been dreamed up yet. Is it right, no but they are in business to make money and they have a good system going to do that. Now lets talk about health insurance /forums/images/graemlins/grin.gif

 

[8561]

Robert and Junkman are correct. The exposure created by a vacant property is significantly higher than an occupied one, even if your occupancy is only to come home there and sleep at night. Bird also correctly pointed out the increased vandalism exposure. Insurance rate is all about exposure and transfer of risk. When the exposure significantly increases, the appropriate premium charged increases. Getut, you're suggesting that your insurance carrier should assume additional risk because of a decision you've made (leaving the house empty), and that they should not collect additional premium to help cover the cost of this risk. You believe you should be able to force them to assume additional exposure for no additional money, that makes no sense. You should also remember that these premium rates are generated by a well-paid actuary who has calculated through statistical analysis the premium necessary to charge to offset the chance of a loss and what that loss would cost. That rate is then reviewed by another actuary working at the State Insurance Department where you live where it is certified as accurate and approved. This does not mean the $1700 premium would cover your loss. Insurance is the pooling of resources to pay those who suffer an event. Those who have increased chance of having an event, pay more into the pool. This is a heavily regulated industry (also part of the cost) that does not make the boatloads of cash people assume. I'm not saying insurance companies don't make money, because they certainly do, but as an industry, insurance has not made a profit on the insurance part of their business in years and years. Money is made on the investment of surplus reserves they are required to hold in the event of catastrophic losses.