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Show cl erg 'Empty' sellers finding insurance a tough go The challenge of finding homeowners insurance for properties once viewed "insurance easy" continues to plague homebuyers who are finding tougher guide lines and higher premi-urn- s from insurance carriers. Insurance protection has not been easy on sellers, either. Joe Dunstan, 51, decided to sell his ly given for renewal notices but companies often allow 60 days to make up for mail time and weekends.) Tm going to play the devil's advocate here and say that insurance on homes, apartments and condominiums has not returned money to the insurance industry for the past 11 years,' said Ross . Thornburgh, a long-tim-e agent who finds himself in the middle of upset consumers and insurance three-bedroo- three-bat- h Tom Kelly primary residence and move into a rental that he and his wife had owned for a few ' years. The residence, on a gorgeous acre with wonderful landscaping and a rv couple of ponds, demanded more time and maintenance that Joe and his wife now had time to give. "We put it on the market last summer and the place still hasn't sold," said Joe, who admits not all families are devoted gardeners with the time and interest to maintain such a place. "We were just going to continue to leave it vacant and try to sell it, until we found out how much it would cost to Joe said. "I couldn't believe it, but a friend told me he had the same experience with a home in his providers. "The claims that have been paid for, conditions you've read in the news earthquake, hurricanes, flood and fires family." Insurance companies simply do not want to deal with unoccupied, vacant homes. Their and history charts show that these places stand a much greater risk of vandalism and problems created by neglect than an occupied home. A slow leak in a . cold, unoccupied home has a greater chance of resulting in burst pipes and subsequent dry rot than a home that's lived in every for-sa- in the western United States really have taken their toll." Some traditional, major carriers nave even adopted a moratorium on "substandard" or higher risk le insurance. Unoccupied, for-sa- le day. insure the place." So, what's the insurThe Dunstans had an ance grace period when excellent relationship with selling a home? If an their insurance carrier employee is forced to reloand had a flawless history cate with little notice, put his wife, family and with the two homes, two cars and a boat. However, belongings in a moving because the primary resivan and go, how long will dence was now unoccuthe vacant home be covered? Many insurance pied, vacant and for sale, the insurance premium companies will give 60 had jumped to nearly days for a transitional "vacant" times normal the period as long as eight the premiums are paid. rate. "The premium for the (Some states require that insurance carriers give 45 previous year was $528 and the least expensive days notice when coverage we could find now that it's is cancelled midterm. A advance is general- vacant was $4,000 a year," 30-d- homes vacant and have slid into this category. Special niche companies that continue to write substandard policies often impose a monthly quota on the number of cases they will consider. Why are insurance premiums so high? Insurance agents and carriers also point to the numbers . claims filed involving d mold, paint, asbestos, radon and urea formaldehyde are up significantly. While all of lead-base- - these environmental hazards have caused terrible losses, other industry costs all passed on to involve the consumer cases compounded "by expensive legal proceedings where neither side receives any real benefit. For example, a recent case involved a renter who died in a house fire. The fire marshal determined the cause of the fire was the renter's smoking in bed. The renter's family filed suit against the seller's $500,000 liability policy, claiming the smoke alarms were not working properly. "We are in a society where if people get hurt, they always believe some-- . body else is to blame," Thornburgh said. There's a huge movement to go after what people believe to be deep pockets, regardless who is at fault." Joe Dunstan had heard all the reasons, but he still couldn't believe the cost to insure the home he still wanted to sell. "I even thought of moving some furniture back in and bringing in my sleeping bag," Dunstan said. "But we decided to get a renter and give him a greatly reduced price. He'll have his stuff in there and make sure the real estate agents have access to show it. "He won't have to pay market rent and well save a ton on the insurance premiums because it's occupied." A Master Planned Community 800 South 200 East Payson or 3 Bedrooms Starting at $96,000 2 . : Tom Kelly, former real estate editor for The Seattle Times, is a syndicated columnist and talk show host. Send questions and comments to hewstomkelly.com. Model Home 3 Beds - 2 12 Baths $1894)00 LOTS - Available Green Ridge Pointe Only 1 Lot Left! $45,900 -- Approx .21 acre Now Available Custom Building Lots on Prestigious East Side. Starting at $38,900 GEORGETOWN Matt Evans & Dan Evans ay www.HarkTheHerald.com RealEstateVJebListings.com 225-72- 72 |
