Question for You P&C Experts Re: Fire Insurance

[arnguy]

I have a friend whose father is elderly and has a home in the suburban Philadelphia area. He lost his homeowner's insurance a few years ago when a claim was paid for a slip and fall accident that happened to a visitor to his house. The insurer inspected the property and would not renew the policy unless the homeowner paved his patio (where the accident occured), rewired the entire house with a circuit breaker system, and replaced the roof. The house dates back to the early 1800's.

He was able to secure a fire insurance policy under the Fair Plan. He has been found to be having memory problems and his daughter, who lives out of sate, has him staying with her since mid-November and is attempting to get him into an assisted living facility. She received a lapse notice from the Fair Plan cancelling the policy for non-payment of a premium that was due in October. She called the Fair Plan office in Philadelphia and told them of the situation and they refused to reinstate the policy because he is not currently living in his house.

Is there any way of getting fire insurance coverage? He wants to come back, but his family feels strongly that he should not live alone. He, however, is adamant about wanting to come back to the house. It is almost certain that the family will not let him move back and will put the house up for sale.

Any and all suggestions would be appreciated.

 

[Insurance-Guy]

I can't help you in PA but you should be able to find a Vacant Dwelling policy. They may exclude the roof but there should be a company that would insure it "for a price". Call around or do a search online for vacant dwelling to see what you can get. But the premiums are going to be higher...insurance companies don't like vacant homes.

Good luck.

 

[djs]

I'm not sure of the rules in PA, but, like always, that doesn't stop me (who can be bothered by pesky rules).....

The claim will work against you, unless you have managed to cross 3 years since the claim, then you will be better.

As insuranceman said, vacant property is a higher risk placement, you can spell that h-i-g-h-e-r p-r-e-m-i-u-m, but I assume you knew this already. Most agents have a way to write a vacant home property, even if not in the best of shape. In California, if it has 4 poles holding a roof up, I can get it insured. There are companies that specialize in these types of properties.

Better option is to rent the property till its sold. This has 2 benefits, one being it will be much easier to insure, the second being the income stream. I do understand this may not be practical. An alternative to this is to have a family member stay in the house, and instead of paying rent, they do minor repairs, mow the grass, pay the insurance, etc. I've had a lot of families do this, sometimes it works well, most of the time, well, it's family.

Dan

 

[arnguy]

Thank you very much, guys. I will pursue the avenues you suggested.

 

[GeorgeF]

Try Geo Vera Specialty insuance, not sure if they write in PA, but we use them for vacant properyties in FL

 

[joshb]

Try Geo Vera Specialty insuance, not sure if they write in PA, but we use them for vacant properyties in FL

George how competitive is Geovera compared to Tower Hill's vacant program and Tapco's program (which I think is Lloyds)? We represent Geovera, but its been years since I wrote a policy with them.

 

[1manshow]

Foremost will write vacant dwelling in Pa

 

[CaptiveBroke(r)]

Although Im not in PA, I can suggest contacting American Modern Insurance in CA.

I have run into this situation in NY where for some reason a house may be vacant for a period of time.

I've placed business with them on occasion and have found them to be excellent.

Their website is: Vacant Home Insurance | Vacant Property Insurance | American Modern.

Good luck!

 

[GeorgeF]

George how competitive is Geovera compared to Tower Hill's vacant program and Tapco's program (which I think is Lloyds)? We represent Geovera, but its been years since I wrote a policy with them.

I find them to be more competitive and easier to work with than Tower Hill, I havent compared to Tapco( but I will next time)

 

[Indiana_Adam]

1manshow, I was going to mention Foremost as well...but you stole my thunder I know their policies are more expensive than ours, but they write almost any kind of home.

Also, the rental suggestion is a great one. However, it will make things more complex. He or the family will need to sign up for any mandatory LL registration or permit/license, use a quality lease (preferrably one that has stood up in court), require tenants have renters insurance(with additional interest amendment), increase his personal liability to at least 500K(though 1million would be better), and become intimately familiar with LL/Tenant Laws. It's not one of those things you just jump into and see how it goes. They'll need to educate themselves because the courts, in a lot of states, favor the tenants and lots of tenants know how to milk the system. Landlording is my hobby/obsession.