not a FIRE question, but real estate insurance problem...

[kitty_37]

my first post!

I've been reading here enough to get your jokes and know who is married to whom.LOL. I'm 49 and DH is 56 and we're a long way from RE. But I have a problem, and thought someone here might have some experience or a suggestion. If it's an imposition, understand. But there seems to be plenty of educated opinions here!

We work full time and own our home in the NE, and have a vaccation home in Florida. I've rented out the Florida house for a couple of years, but am planning some renovations and was going to leave it empty for a year. We owe around $20,000 on it and it's worth $225 or so.

My insurance co stopped insuring in FL. All of a sudden I got a letter from the bank saying I needed to get insurance. The IC just never sent a bill to the bank for the annual premium and the phone # is not working.

Insurance companies are fleeing FL, and mine (after 9 years) has flown the coop. My only choice is pooled insurance.

Today the agent said I can't get insurance unless the house is fully rented out, and that I have to send a copy of a completed lease agreement. Has anyone heard of anything like this? Since I am not living there full time, they want someone to be there. We just use the house for vacations, relatives for a month at a time, etc.

I don't know what to do. The agent said, just get a lease and have your aunt or mother (frequent home users) sign it. But then she is saying she is there full time. A lease would show her address, have a start and end date, etc, as if she was living in the house. That's not true.

I hope I am describing this clearly. Do I really have no choice? Or maybe I have to rent it out a few more years until DH and I will be there more. Am I taking risk if I have my mom or sister sign that they are tenants?


UGHHHH!

I'd so appreciate any thoughts anyone with knowledge in this area might have. This took me by surprise and I'm trying to resolve it quickly...

 

[Mr._johngalt]

my first post!

I've been reading here enough to get your jokes and know who is married to whom.LOL.  I'm 49 and DH is 56 and we're a long way from RE.  But I have a problem, and thought someone here might have some experience or a suggestion. If it's an imposition, understand.  But there seems to be plenty of educated opinions here!

We work full time and own our home in the NE, and have a vaccation home in Florida.  I've rented out the Florida house for a couple of years, but am planning some renovations and was going to leave it empty for a year. We owe around $20,000 on it and it's worth $225 or so.

My insurance co stopped insuring in FL.  All of a sudden I got a letter from the bank saying I needed to get insurance. The IC just never sent a bill to the bank for the annual premium and the phone # is not working. 

Insurance companies are fleeing FL, and mine (after 9 years) has flown the coop.  My only choice is pooled insurance. 

Today the agent said I can't get insurance unless the house is fully rented out, and that I have to send a copy of a completed lease agreement.  Has anyone heard of anything like this?  Since I am not living there full time, they want someone to be there.  We just use the house for vacations, relatives for a month at a time, etc.

I don't know what to do.  The agent said, just get a lease and have your aunt or mother (frequent home users) sign it.  But then she is saying she is there full time.  A lease would show her address, have a start and end date, etc, as if she was living in the house.  That's not true.

I hope I am describing this clearly.  Do I really have no choice?  Or maybe I have to rent it out a few more years until DH and I will be there more.  Am I taking risk if I have my mom or sister sign that they are tenants?


UGHHHH!

I'd so appreciate any thoughts anyone with knowledge in this area might have.  This took me by surprise and I'm trying to resolve it quickly...

Yes., you are "taking a risk". Claims may be denied in the future
if the truth comes out. OTOH, you may have no choice.

We faced similar troubles with our Texas condo. We ended up with
personal property coverage through my homeowners insurance in
Illinois and a stand-alone policy for liability. We are going bare for
internal structural damage. I spent hours trying to resolve this.
No luck.

JG

 

[Jarhead*]

my first post!

I've been reading here enough to get your jokes and know who is married to whom.LOL.  I'm 49 and DH is 56 and we're a long way from RE.  But I have a problem, and thought someone here might have some experience or a suggestion. If it's an imposition, understand.  But there seems to be plenty of educated opinions here!

We work full time and own our home in the NE, and have a vaccation home in Florida.  I've rented out the Florida house for a couple of years, but am planning some renovations and was going to leave it empty for a year. We owe around $20,000 on it and it's worth $225 or so.

My insurance co stopped insuring in FL.  All of a sudden I got a letter from the bank saying I needed to get insurance. The IC just never sent a bill to the bank for the annual premium and the phone # is not working. 

Insurance companies are fleeing FL, and mine (after 9 years) has flown the coop.  My only choice is pooled insurance. 

Today the agent said I can't get insurance unless the house is fully rented out, and that I have to send a copy of a completed lease agreement.  Has anyone heard of anything like this?  Since I am not living there full time, they want someone to be there.  We just use the house for vacations, relatives for a month at a time, etc.

I don't know what to do.  The agent said, just get a lease and have your aunt or mother (frequent home users) sign it.  But then she is saying she is there full time.  A lease would show her address, have a start and end date, etc, as if she was living in the house.  That's not true.

I hope I am describing this clearly.  Do I really have no choice?  Or maybe I have to rent it out a few more years until DH and I will be there more.  Am I taking risk if I have my mom or sister sign that they are tenants?


UGHHHH!

I'd so appreciate any thoughts anyone with knowledge in this area might have.  This took me by surprise and I'm trying to resolve it quickly...

Insurance companies are getting a little goosey in Calif. also. (Mold problems).

I wouldn't be very comfortable with following agents advice, (they work on commission of course). If you signed a lease and indicated to the carrier that you had full time resident there, and you in fact did not, they could probably use that as a "weasel clause" to avoid paying a large claim.

They probably gave you a little time to get other ins., didn't they?

I think a good place to start might be your local agent. As a service to you as a policyholder, he should have the ability to contact various carriers that are writing ins. in Florida.

Sounds like if all else fails, you can get a renter in there full time that would solve your problem for a while.

In any case, it doesn't appear to be an insurmountable problem.

Good luck. (Real estate can be fun sometimes.

 

[73ss454]

Kitty,
I think that you should try another ins. co.  They all have different rules so you may find a company to ins. you.

If you PM me I will give the info on my ins. co. for my house in Fla.  It's also my second home, hopefully soon to be my primary.

JOE

 

[Brat]

Since the reason for your leaving the home empty is to renovate (it is tough to have a tennant occupy a home under renovation) declare an intent to move (or a family member move in) after rennovation. The reason insurance companies don't like to ensure empty homes is that unsavory folks move in. Frankly leaving the house vacant for more than a month or two isn't a good idea. Get creative.. maybe make a house-sitting arrangement with someone who has a travel trailer and who would be willing to stay on the property during your remodeling.

 

[kitty_37]

I want to thank you all for your responses- it really helped me both with my stress level, which was off the charts, and with actually solving things. It is really hard- I felt better knowing it's like that other places as well!

Today got complicated because the new insurer is freaking out that there is a "named" storm coming and won't write insurance for 5 days. I have a binder from my bank so I'm OK, but i had a few bad moments!

The suggestions to use my regular homeowners company was good- and the agent here is, like, you have ANOTHER home? Sure, I'll be right over! So I may switch over later this year.

And I've decided to put a full time tenant back into the house sooner, rather than later. Anybody want to rent a small, slightly shabby but cute house in Ft. Lauderdale?

LOL!

So, thanks again- I felt bad asking for advice on a first post, but it's what you do best! I really appreciate it!

 

[tryan]

Best rates will be to make the vacation home a rider on your primary residence policy. Any of the big insurers (Sate Farm, GEICO, ....) have coverage nation wide and will cover you under a single policy. Might not like the rate for one of the 2 homes but the average cost will be better than 2 seperate policies.

If all else fails call another agent in FL. There are thousands of vacation rentals ... somebody has solved this one before. I called 3 agents before finding one who was creative enough to handle a weekly rental I am building. But even still ... no coverage until the work is complete and furniture is in. Using the builders insurance policy until then (this might be an option while work is being done). The builder's insurance coverage will only apply to his "fault" ... but it's something.

 

[TromboneAl]

Just to consider all the options, what about selling the Florida home? That could simplify your life and reduce your stress level.

 

[Craig]

I also like the idea of a housesitter ... consider an older person or couple, at a very low rent, even during renovation ... more a caretaker than a renter. And, if they're handy, could even help you re: the construction. The insurance company won't care about the rental rate really ... just that there is someone in the home, watching over the asset.

Good luck, and hope the storm misses your home away from home.

 

[kitty_37]

Again, thanks for the help with this- you folks are great!

Al, we think about selling, as the house has appreciated so much, but keep struggling with that after we sell it, we don't HAVE it anymore! I want this house to live in at least part time later. And re-buying into the FL RE market is not a fun thing. I have low taxes since I bought many years ago. We had a lot of years of vacations there, and a couple years of good income. I feel the work/stress is worth it in return.
Charles, that is more or less where I am headed. I am putting off the more significant improvements(taking out old tile floor and replacing with new and new kitchen cabinets) and will just do the repair and fresh paint kind of things, and rent again.

DH and I have a few more years til we can stop working and will want the house. Until then, we'll go back to collecting rent and paying off the mortgages on both homes....

Thanks so much- you've all been so generous with your help!

kitty