Insurance coverage during remodeling

18 years ago

Reading the post about insurance coverage after water damage prompts this question. I recently "updated" our insurance coverage after realizing that the level of coverage would be sufficient to build at best 50% of a new house. During the discussion with a new agent I asked about how the remodel would affect this insurance level realizing the "fact" that if you move out of your house for a considerable period, it is no longer insured. Since we will have to move out (temporary kitchens are OK but we need a bathroom!), I needed this information. The agent told me that if we went on vacation that was ok but if we moved out due to renovation we could only be out for 3 weeks before our insurance coverage would lapse. So the "fact" seemed to be true.

Fast forward to my reading the entire policy from cover to cover and all I can find are references to vacancy that affect whether they will replace your glass or clean up graffiti. There is nothing about the coverage lapsing because we move out. In my subsequent emails (better than telephone for keeping records) with the agent, he cited the glass section and when I said, "well, I'm not concerned about glass, I'm concerned about involuntary loss of insurance," he said that his reference to the glass was to show that ....what? that he was wrong about the effects of moving out? No! He didn't say that, that would be too clear. But he implied strongly that moving out wasn't a problem after all. So much for that "fact." I wrote him back an email saying what I thought that he meant and hoping he would write me back to confirm. Naturally he hasn't. So, I will send him a certified letter stating that this is what he has told me...while also calling the company to confirm the agent's position. What a hassle.

So, short version: Is it typical for insurance coverage to lapse if you move out while your house is being renovated? I keep feeling like there's something that isn't actually in the contract (policy) that I have with the insurance company!

Sort by:Oldest

Comments (5)

weissman
18 years ago
Insurance agents are just salesman - they don't always know what they're selling. By all means talk to the company and read the fine print but just because the policy says one thing doesn't mean the company won't try to sleaze out of paying a claim if they have the opportunity.

To play it safe, you could always take a series of "vacations" - and move back home for a night or two and document the fact just to avoid the issue. You should also keep an eye on your house during the remodel - thefts and vandalism often happen during remodels - watch out for any new appliances that are being stored in the house.
plants4
Original Author
18 years ago
All along I was planning on doing some weekend "sleep-overs" (with, as you say, dated photographs to prove it) so I just wanted to make sure how frequent those would have to be!

I've been concerned about the security issue too. Another reason to move back in as soon as possible. Thanks for pointing out the appliance issue.
Related Professionals
El Dorado Kitchen & Bathroom Designers · Elk City Kitchen & Bathroom Designers · Watertown Kitchen & Bathroom Designers · Frederick Kitchen Remodelers · Oxford Kitchen Remodelers · Hilton Head Island Kitchen Remodelers · Orangeburg Kitchen Remodelers · Abilene Kitchen Remodelers · Newburyport Kitchen Remodelers · Plymouth Kitchen Remodelers · Madison Kitchen Remodelers · Victorville Kitchen Remodelers · Augusta Custom Countertops · Ashland Custom Countertops · Bloomington Custom Countertops
luvnola
18 years ago
Fern4 - I don't know what company you are with, but my husband is a State Farm Agent. Here is their policy. Your homeowners will still cover your home while you are temporarily out of the home including anything you bring with you (less your deductible). However, if you plan to be out of your home for more than 6 months, then a Vacancy Edorsement should be added to your Homeowners Policy which will result in a little higher premium for the additional coverage. Hope this helps!

Also, yes Insurance Agents are salesmen/saleswomen BUT they still HAVE TO KNOW their product!! They are required to be licensed etc.
snowyshasta
18 years ago
We have State Farm as well and I talked to our agent and got about the same information as luvnola posts. We were told that our liability insurance would completely transfer to wherever we were leaving (ie if someone gets hurt at our rental house). We were told that our belongings would be covered up to a value of I think $25,000 (some percentage of our total insurance policy, I think it was).

We are renting for just about 6 months during our remodel and it seems that our existing policy will be fine. We were also required to have renter's insurance for our lease, and we had State Farm fax our policy to the renting agent and they were fine with our coverage.
jejvtr
18 years ago
fern -
That clause seems to be rather made up by your agent rather than a provision in the policy - I would clarify that directly w/the insurance company

A homeowners policy is in effect for the date on the declaration page typically a one yr span and can only lapse if you are not in good standing (payments) at which time they legally have to give you notice that you will be dropped unless you have your payments w/in a certain time period -

Plenty of people are away from their primary home for various reasons for extended periods of time - how on earth can an insurance company prove or disprove a period of time and whether it was vacation or not -

please ck w/you co.

good luck