help...Property Ins. / Vacant Property

[HillStreet]

There are factors that come in to play on the underwriting side:
1. Neighborhood. Declining, appreciating.
2. Crime. What types and how often. Vandalism, arson, thefts?
3. Class of town. This is for fire protection rates. Hydrants? Fire Dept type and distance.

 

[sdquick]

Interested on what you find. Keep us updated.

 

[Fuddy1952]

Curious about which state it's located. Also pictures would be nice.
Also curious about this...years ago we had neighbors/friends here in Virginia who had a 350 acre farm about 25 miles away. They raised Angus beef cattle and had a really nice collection of restored antique John Deere tractors. In the main barn they installed living quarters so they could stay there sometimes.
My point is suppose you did that, so it's no longer considered abandoned property. Either you could stay there part time or someone else. You could even rent it.
My in-laws passed away roughly 10 years ago. That house was vacant but insured, which was somewhat tough since the agent never found anyone home! But...it worked until wife sold it.
Your place, a years insurance would pay for a used travel trailer and well.
Just curious about options.

 

[YLee Kioti]

I think the key word here is 'vacant'.

We paid about 1200 a year on our home. We moved to the homestead into a tiny living space in my shop.
The 'vacant' house annual insurance is now $2900 a year. OUCH!!!

So yeah shop around but our experience is that a normal insurance company will refer you to a high risk carrier, because it is vacant.

 

[the old grind]

Oosik, Allstate wanted more for PL & PD on my 10 YO bike than a decent provider (who will actually pay a claim) got for full coverage on a new model ("Milwaukee moped '89 FXSTS). Allstate was great in the '60s '70s and '80s, but they were deep into tech stocks in the mid '90s and lost their a__ when the bubble burst. Headhunters were brought in to take scalps and recoup losses. Those guys are still filling out claim forms and making payees get lawyers to collect them. I'm told they are second to none for rate-gouging lawsuits too, but I didn't stay around for that after $8k and no lawyers wanting a case that '$mall'. '20 & out' with them after that runaround.

An 'Independant Agent' works for you. A 'Company' Agent (recognizeable name, TV billboard ads, and stockholders to PAY) is working for his/her company. You've likely never heard of Citizens Mut. or Hastings Mut. in MI and that's why my rates are so low. One claim with Citizens was for totalling my car (a guy turned in front of me going into methadone clinic, left in cuffs) They called and asked if $xxx minus deductible was fair recompense. "Yes, sir." I stayed with them for three more years and never saw a rate increase. (switched to an even better 'bundle', competitive rate, and homeowners $250k coverage < $1k/yr.)

My agent has 'dropped' a dozen companies in as many years for not paying claims and now writes for only 28 or so, including GMAC and other trustworthy 'majors'. Tell you what, at the risk of my own rep, I trust my agent's discretion (in biz since '63) enough to recommend these companies for fair rates and for paying claims as we'd expect.

American Modern Insurance Group
ASI Progressive Home Advantage
Auto-Owners Insurance Company *
Citizens Insurance Company *
Dairyland Motorcycle Insurance *
Encompass Insurance Company
Foremost Insurance Company
GMAC
Grange Insurance Company
Hastings Mutual Insurance Company *
Mass Mutual Financial Group
Mercury Insurance Company
Progressive Insurance Company *
Safeco Insurance Company
State Auto Insurance Companies
Travelers Insurance Company *

* are rated :thumbsup::thumbsup: with folks I know. You guys seem to get as much with KTAC insurance and wish I could too.

Progressive made the list of big guys, and while I bundle cars/house to get jaw-dropping rates ($250k homeowners, ~$900/yr) it's Progressive that comes through for m'cycle-only coverage. Insurance is too valuable not to shop around. My SIL was paying Allstate $450/mo for 3 cars and crying to the poor office person on the phone. I convinced her to call my guy. Same coverage for $162/mo less.

Guys/gals, skip the gougers with full page ads in the phone book. Find a good Independant Agent and he'll find you the best coverage for your $$.

 

[the old grind]

.. We paid about 1200 a year on our home. We moved to the homestead into a tiny living space in my shop.
The 'vacant' house annual insurance is now $2900 a year. OUCH!!!.

This can be as simple as 'quality of provider'. I was in that boat for 5yrs. 'Vacant' $120k house was $1900/yr a decade ago if I 'might' file a claim and want a check, $900/yr from a company that rarely pays a claim. (I paid and never filed a claim.)

I could have rented out the house, got a 'landlord' policy, and with a renter's own insurance on their belongings $1200/yr total was possible with the right company. Your agent should be able to explain why 'occupied' reduces the rate so much.

"Shop 'til you drop" or 'pay the freight'.

 

[YLee Kioti]

Yeah I understand why vacant is high risk and high premiums.
Don't need an explanation.
My insurance agent did shop around, this high risk carrier is in Arizona. So this was the best we could get. So we are paying the freight.
No we will never rent.
House must sell so we can build on the homestead.

 

[sandman2234]

Pretty good reason to offer the property to a local law enforcement or maybe a Wildlife Officer, free of rent and supply a clean used travel trailer as a place to stay. We have some property up in GA and offered to build a small house to keep a Deputy on the property just to keep my neighbors from hunting it and dumping on it, and basically using it however they wanted because they know we are hours away.
David from jax

 

[kc5dlo]

You might want to find out what the definition of vacant they are using. I remember the first President Bush maintained his residency in Texas while he was president by staying 14 nights in a hotel in Houston.