Northern Michigan Real Estate: Homeowners Insurance Coverage - Owner Beware

Homeowners Insurance Coverage - Owner Beware

Many neighborhoods around the state are seeing more and more homes being rented out or just unoccupied.  If you find yourself having to relocate because of a job change or any other circumstance, make sure you check with your insurance company about your coverage. 

If your home is unoccupied for more than a month and suffers damage as a result, you may find yourself non covered for the damage.  The actual amount of time you can leave your home unoccupied before it affects your coverage will vary from insurer to insurer.  Insurance companies view unoccupied homes as a higher risk policy and you should expect to pay a higher premium for coverage.  Some companies will not insure at all on these higher risk properties.  An independent insurance agent can help you search for policies that will fit your circumstances.

If you are renting what was your primary residence, you will also need to contat your insurer and get a new policy.  Insurerr also consider a rental property a higher risk policy than one that is owner occupied.  This is due to the renters having less interest in caring for the property.  If you are going to rent out your primary home, you must place a landlord policy on the home.  These premiums are higher but they do cover for loss of rental income if the house burns or becomes otherwise uninhabitable.  Landlord policies will not cover tenant possessions if they are stolen or damaged, so it is important to encourage your tenant to purchase a tenant homeowners policy.  Renter's insurance is relatively inexpensive.  Premiums are usually less than $250 a year.



Christine Stalsonburg, Broker/Owner

Cherry Wings Realty













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Comment balloon 2 commentsCherry Wings Realty • August 18 2010 07:23AM


That is very concerning. Could spell disaster for an owner and for thier lender if there is a large mortgage. 

Posted by Ellen Dittman, #1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r (Watson Realty Corp.) about 9 years ago

Great Blog post.  Many home owners don't realize they need to change their insurance on their home.  Thanks for sharing!

Posted by Kathy Torline, Colorado Springs Real Estate Blog 719-287-1049 (ERA Herman Group Real Estate) about 9 years ago