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Before you vacate your home, find out if you're covered

Published On: Aug 08 2012 02:43:34 PM CDT
Updated On: Aug 23 2012 09:40:12 AM CDT
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By Steve Graham, Networx

I know several people with homes in two states … and they’re not high rollers. They needed to relocate before selling their homes, leaving vacant homes on the market for months. They struggled pay two mortgages and complete the long-distance sale, but vacant homes also present other problems. They may need additional insurance coverage and additional government oversight.

Insurance Liabilities

Of course, when a home is vacant, nobody is home to call 911 or schedule repair work, and the empty home is inviting for vandals, burglars and squatters. Homeowners also may be liable for property damage and personal injuries in unoccupied homes.

The National Association of Insurance Commissioners warns that these liabilities may not be covered under standard homeowners’ insurance policies. Most policies have exclusions for lengthy vacant periods -- often 60 days -- even if furniture and other belongings remain in the home. Vacancy policies and riders are available, but homeowners shouldn’t assume such coverage is part of their existing policies.

Legal Jeopardy

In addition to financial jeopardy, homeowners with vacant homes for sale may face legal jeopardy. Recently, Detroit joined hundreds of other cities in requiring registration and a $25 fee for vacant properties. Failure to register can bring a $500 fine. Most cities also require a certain level of maintenance on vacant properties, with thousands of dollars in potential fines for failure to meet city codes.

Get Help Selling a Vacant Home

On the other hand, homeowners can find professional help in selling a vacant home. Showhomes, a home staging company with franchises around the country, hires a “home manager” to live in a vacant home while keeping it in pristine condition. This service avoids the aforementioned insurance problems, and can significantly raise home values. Buyers typically like to see a furnished home, making it easier to imagine living in the house.

Of course, a faster sale means less time to worry. In the meantime, be sure to protect yourself if you are selling a vacant home

Source: http://www.networx.com/blog/what-you-need-to-know-about-selling-a-va

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