Do You Have Insurance While You Are Away For Long Periods?
Owning multiple homes has become increasingly common, particularly among the affluent. The reasons for owning multiple homes may vary, such as having a vacation home, a property for rental purposes, or simply having a second residence for convenience. However, leaving a home vacant for extended periods of time can have significant implications on the insurance policy for the home.
Insurance companies view vacant homes as a higher risk since they are more vulnerable to damage or theft, and there is a higher likelihood of damage going unnoticed. As a result, the insurance policy for a vacant home is typically more expensive than one for an occupied home. In some cases, the insurance policy may even require specific terms and conditions to be met, such as regular check-ins or inspections to ensure the property remains secure.
If a homeowner owns multiple homes and decides to leave one of them vacant for a long period of time, it is crucial to inform the insurance company of the situation. This is because the insurance policy for the vacant home may be invalid or voided if the insurance company is not aware of the situation. In such cases, the homeowner will not be covered in the event of damage or theft.
In addition to informing the insurance company, there are other steps that homeowners can take to protect their vacant homes and ensure that their insurance policies remain valid. For example, homeowners can install security systems, hire home watch companies to regularly check on the property, or even rent out the property to tenants. These steps can help to reduce the risk associated with leaving a home vacant and may even lower the insurance premiums for the property.
However, it is essential to note that renting out the property may require additional insurance coverage. If a homeowner decides to rent out their vacant property, they will need to obtain landlord insurance to protect against damages caused by tenants. This type of insurance typically covers loss of rent, liability, and damage to the property caused by tenants.
It is also worth considering the implications of leaving a home vacant for an extended period of time on the overall value of the property. A property that is left vacant for a long time may become a target for thieves or vandals, which can cause significant damage to the property and decrease its value. In addition, a home that is not regularly maintained may experience issues such as water damage, mold, or pest infestations, which can also decrease its value.
In conclusion, owning multiple homes and leaving one vacant for a long time can have significant implications on the insurance policy for the home. Homeowners need to inform their insurance companies of the situation to ensure that the policy remains valid, and take steps to reduce the risk associated with leaving a home vacant. This can include installing security systems, hiring home watch services, or renting out the property. Additionally, homeowners should consider the impact of leaving a home vacant on the overall value of the property and take steps to prevent damage or theft.
Please be sure to read your Product Disclosure Statement (PDS) and/or contact your insurance company to see if you are covered by your current policy. If you are not covered discuss what can be done to meet the terms and conditions. Engaging a home watch company that provides a periodic detailed inspection report may be all that is necessary to meet the needs of the insurance company. Click on the following link to read an article from GIO Insurance Read More