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Umbrella insurance cover a vacant home?

Hopkinton, MA |

Might be better to ask an insurance agent, but we are planning on walking away from our current house (nonreaffirmed as part of Ch7) and renting a new house out of state. If I were to add umbrella insurance to my renter's policy. would that cover me for personal liability for my old home while the foreclosure process is taking place (the home will be vacant)?

Thanks

Attorney Answers 3

Posted

Without providing your name or providing the address of the soon to be vacant house, I would call your insurance carrier this question. You are correct that you still need to insure the property while you still own it and correct that your current policy that covers the property that is occupied will not now cover a vacant house. The reason for this is the higher likelihood of vandalism, arson, etc... when a house is vacant as opposed to occupied. You will most likely have 2 options: 1) pay more for insurance; or 2) rent the property so it is occupied and require the renters to carry renter's insurance.

The renter should be notified that the property is in foreclosure and that you will receive only a couple of week's notice (as a forclosure sale needs to be advertised in the local newspaper for 3 consecutive weeks). I know this will severely limit the pool of tenants willing to rent your house, but if you can find a tenant who agrees to rent the property despite this knowledge, it would help you pay for your homeowner's insurance and other expenses (utility bills).

The content of this answer should not be relied upon or used as a subsitute for consultation with professional advisors and it should be clearly understood that no attorney-client privilege has been created. A more complete answer and/or more accurate answer can only be provided in a more thorough examination of the facts in a consultation with my firm.

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Posted

It's going to depend on the language in the policy.

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Todd Allen Davidson

Todd Allen Davidson

Posted

Attorney Gutierrez is correct in that it is really the language in the policy that dictates if the policy contract and the representations of the insurance agent/company differ. The correct process would be to read your policy. The policy is supposed to be readable by an 11 year old, which I would think most people who read it would find amusing. I would then call your insurance company for quotes and other insurance options. I would also feel free to shop around with other insurance companies to see if you can get better coverage/better price.

Posted

You'll need to check specifically with your agent and get an answer in writing.

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