Vacant Homes Need to Remain Insured

People who own vacant houses need to remember to keep them insured, reminds one prominent industry organization.

According to the Insurance Information Institute, 14.5 percent of all U.S. homes were said to be vacant in the third quarter of 2009. Much of this is due to a housing market that has seen heavy foreclosure activity and a drop in real estate prices.

"With it taking much longer for a home to sell - particularly with tightening mortgage requirements for potential buyers - people are moving into their new home while their previous one remains vacant and that can cause significant problems for homeowners and insurers," said Loretta Worters of the I.I.I.

The institute noted that coverage is often discontinued on a home if it has been unoccupied for at least 30 days, although in many cases a vacancy permit can be arranged with one's insurer. Some companies are also said to offer specific policies for vacant properties.

Vacant homes are said to be seen as a greater risk by insurers because they can be at greater risk for fire and burglary, among other forms of damage. With that in mind, coverage costs are also said to be influenced by things like alarm systems, smoke detectors and the quality of locks used.

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