Long story short, I have a mortgage on a house that is vacant and unliveable. My normal insurance was just dropped b/c obviously the house doesn’t meet certain requirements. I don’t have money to pay the house off, but I need insurance on it because it is mortgaged. Can anyone give me some options?
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There are high risk companies that will cover the house. Your insurance payments, however, will likely be more than the mortgage payment. Start with Foremost insurance, they will cover some vacant property in some states. Other than that you’ll have to call around to see what might be available in your state.
Other than that the mortgage company will put insurance on the home. This is the most expensive way to go plus it only covers the payoff amount.
if it was just the fact of being vacant you could find coverage for it. since you admit it is unlivable, i don’t know of a single company thats going to take on that risk. let the mtg put forced insurance on it and get it fixed up so you can insure it.
Well, you can try two places – http://www.foremost.com, for a vacant dwelling policy, at about 4X the rate of a regular homeowners policy. And you can try your state property “FAIR” plan, which may or may not insure vacant dwellings if they are boarded up and secured against entry.
Otherwise, you’re going to be stuck with the forced placement coverage from your mortgage company, until you repair the place, sell it, or it gets reposessed.
I write these risks with Burns & Wilcox. They are a surplus lines dealer who typically write a Lloyds of London underwriter or Scottsdale Insurance Company. The premiums are higher than the standard market, but no standard market will take a vacant home, much less one that has not been maintained. In the area I am in, Foremost’s vacant DP-1 policies tend to be much higher in premium than even Lloyds of London. Strange…an hour ago our Foremost marketing rep just stopped by to go over production numbers and we discussed this…