Hazard insurance - Posted by Carolyn

Posted by Bud Branstetter on July 16, 1999 at 24:11:44:

It is not out of line for vacancy insurance. If you get a regular rental policy most will give you 30 days to get it occupied no matter how long you paid for. If it goes over the 30 days the policy probably says they can (and do) deny any claim.

Hazard insurance - Posted by Carolyn

Posted by Carolyn on July 15, 1999 at 13:47:37:

Hello all.
I have a small question concerning hazard insurance. Specifically I may be buying in the next few days a SFH at auction (foreclosure). Although I will not have actual possession of the property until the end of a court ratification period (approx. 45 days)I am liable as soon as the sale is complete at auction. My question: today I contacted my insurance agent for a short term policy (replacement cost of $52K) as I intend to buy and immediately resell. The agent gave me a rate of $436.00 (payable in advance)for 3 months. This rate is for a non-own. occ. empty residence. Does this rate sound about right or should I pursue other quotes?
Thank you.

Re: Hazard insurance - Posted by Steve C.

Posted by Steve C. on July 20, 1999 at 17:57:49:

Try builders risk insurance if you are going to hold short term.


Re: Hazard insurance - Posted by JPiper

Posted by JPiper on July 16, 1999 at 08:50:51:

Sounds about right to me. Further, the premium is fully earned…meaning if you cancel early you don’t get a refund. Vacant house insurance is expensive.


Re: Hazard insurance - Posted by Scott Moore

Posted by Scott Moore on July 15, 1999 at 16:55:14:

You bet it is high, especially for a SF. Call around and get quotes. Do not tell them it will be vacant. Tell them it will be rental property. This way it will be covered while it is vacant (while you look for tenants shhh…)

Pay for a year or 6 months, then when you sell, you get the remainder of the premium back as a refund.