Sellers risk losing home insurance leaving town before sale

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by Ashley Korslien & KREM.com

KREM.com

Posted on April 27, 2012 at 2:23 PM

SPOKANE-- In a tough economy, selling a home is already hard enough. The last thing sellers want to worry about is getting dropped from their insurance policy.

In a 2 On Your Side investigative report, Ashley Korslien found out why you should be very careful when putting your house on the market.

When you sell your home, usually your plan is to re-locate, and buy another one.

Sometimes that process will take you out of the state, and that can pose huge problems when it comes to your homeowner’s policy.

Marianne Guenther Bornhoft's listing sat vacant for six months, with no offers. Her client, who moved out of state, was up against a less than ideal real estate market. On top of that, he faced losing his homeowners insurance.

It’s a serious problem many sellers don't know much about.

If you move out of your home, and out of the area, your insurance company can drop you from your homeowner’s policy.

Insurance agents say it all comes down to liability.

With no one watching the home, no one would notice vandalism or water damage occurring.

Bornhoft didn't want her client to lose his insurance, so she suggested he get a "caretaker" for the home.

It’s an increasingly popular trend, caretakers move in, pay utilities and discounted rent, in exchange for monitoring the property.

Bornhoft says a vacant home is harder to sell.

Having someone live in it could actually help you get it off your hands faster.
 

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