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ok, what's the deal with these dwelling insurance policies and phony benefits?
I'm looking for a company to insure a small house I want to buy through a foreclosure auction. I need it insured from the date the deed is in my name to the date the occupant moves out, quietly or through eviction.
I got a quote from an independent agency through J&J and Scottsdale. The premium is a surprisingly low $468 a year. It is called a "Dwelling Fire Quote" (DP1), occupancy" tenant and protection class 2.
What does all that mean?
The occupancy: tenant
is not what I asked for, they were specifically told that the house is occupied and the occupant is not me and not a tenant.
So, I need to pay them a visit and speak to an agent and not the phone person at the front who gave me the quote............because:
Today I decided to check out Foremost. They referred me to two in my city and one gave me a quote. Expensive $2600 a year but prorated refund on a cancel. I asked what do I get for a $10,000 loss. They said $10,000. What do I get for a total loss? They said up to $70,000 which was the minimum they could write (80% of the value of the house - tax value).
Expensive but at least I got someone to insure this house. But, here the occupancy said: vacant. They were told point blank the house is not vacant. It's occupied and it is not me and not a tenant. So, I go to the 2nd agency who can write Foremost. They called Foremost and they said, the previous agent was 100% wrong, the $70,000 policy would not pay me a dime. They demanded the name of the agent. I declined. They said if I had bought that policy I would probably get paid but have to fight them slightly, because the error was the agent who quoted the policy benefits.
The 2nd Foremost agent tried their other sources and all said they could not cover this house. The firms were American Modern, American Reliable, Foremost, and Aegus.
So, back to square one looking for someone who will insure it. Businesses can buy insurance on hole in one contest in gold in order to offer a million prize. If I had a dog house made of gold, somebody would insure that. Why not my house? Maybe the risk is high but the coverage I want is only $38,000 and a premium of $1000 a month would be fine, but it seems no one will insure it at any price.
Do you know any one?
Why do agents offer insurance that won't pay a dime? Are they wanting to be sued? Someone could be killed in a fire on a policy they wrote improperly.
Allstate and State Farm won't even write vacant house policies like the one we have on my father's house right now.
This occupant is not a paying tenant and they can not even be evicted thru the magistrate's office like normal. Foreclosure evictions are different.
I have to explain my situation to these agents with every last detail or I would end up with a policy that won't pay a dime.
Someone said maybe Lloyds of London.
Someone said that as the owner of the house (should I be the high bidder at the auction), I would own "interest" in something so that "something" is insurable, but no luck yet.
Feel free to email me with the reason WHY the second agent said no one would write this.
I'm finding no way 2contact u.
It seems u and Stephen W. disagree on tenant-vacant-occupant.
The 2nd Foremost agent who uses other companies said they all had about 7 "foundations" on which 2 write a policy & my situation didn't fit any of them. The 2nd agent called Foremost & they said the 1st Foremost agent was getting ready to sell me a policy that wouldn't pay a dime. The foreclosure lawyer did make a comment that fire by vandalism is a crime but if person left the state extradition would be close 2 zero.
I've got 9 business days 2 find a way 2 cover this house so I can bid.
The 1st Foremost agent said no co-insurance requirement but they insured the house for $70K though I'd only be paying $40K. I said what do I get on a 10K loss....answer check for $10K or repairs fixed for 10K. Partial loss, I'd want to stay. Total loss, I'd want my $40K. Again they said on total loss check of 70K
there is something fishy about the 2nd agent. I left there is a hurry at 2:45 to make it to the lawyer's office. I left his office at 3:45 and called that agent. She had already found out that none of the companies I stated in my question Foremost, American Reliable, American Modern and Aegus none would cover me. All this in and around the other work she was doing and other phone calls since she works alone. I'm going to call Foremost again.
I called Foremost. They said there are many situations where there is a death in the family and a family member becomes an occupant and is not a tenant and this agent, said they would give me a quote over the phone. They said go back to the first agent and get explanations on the discrepencies in the policy being dwelling fire when they knew I wanted fire by vandalism, that they have it marked vacant when it is not, and they said I'd get $10,000 on a partial loss of $10,000 and $70,000 or a total loss when in fact I would not get a dime.
This phone call agent writes only for Foremost. I find it odd the 2nd agent who works alone, contacted all those other companies and had time to find out none would cover my situation in under an hour when she had already been told on the phone Foremost won't cover me, which appears false. Someone, maybe more than someone is up to some tricks....and in some cases tricks can be called lies. I'm going back to the Scottsdale agent as well.
4 Answers
- AnonymousLv 71 decade agoFavorite Answer
Ok. Let's start at the beginning.
You probably can't buy a policy for a two week or four week term. You probably have to buy at least three months at a time. You can cancel, and get a refund, when you move in and it's not tenant occupied (or vacant) any more.
DP1 is a standard policy form, covering basic perils - fire, lightening, explosion. The standard DP1 does NOT cover vandalism. You can try to add that on extra. If it's not listed as covered, it's not covered, on a DP1 form. ALSO, you can ask the agent who gave you the quote, exactly WHAT is covered. They should give you a written list. Tenant occupied, means the owner doesn't live there, but someone else does - it's not vacant. Protection class, is a number assigned to show, among other things, how far the house is from a fire hydrant. PC2 is GOOD.
Just because the tenant isn't paying you rent, doesn't mean they aren't a tenant. Anyone besides an owner, living in the house, is a tenant. This is correct. The prior owner, still living in YOUR house, is a tenant.
I'm not quite sure why the 2nd agent said no one would cover this house. I'd say they're wrong. I would also say, 1st agent was wrong when they said you'd get paid $10K on a $10K claim - Foremost writes houses on "functional replacement cost" and 80% coinsurance. Feel free to email me with the reason WHY the second agent said no one would write this. Was it the LIMIT?
You could go to Lloyds of London through an independent agent, and get flat coverage. HOWEVER. Flat coverage is much, much more expensive. SO. If you want it YOUR way, $38,000 of flat coverage - you CAN get it, with a local agent. It will probably cost you about $3,000 a year, with a $1,000 deductible, 50% minimum earned premium (they keep the first $1500 NO MATTER HOW SOON YOU CANCEL). OR, you can get a Foremost policy for 80% of the market value, NOT THE ASSESSED VALUE, and pay $2600 or so, with a pro rata refund.
And, someone being killed in a fire, isn't covered under these policies.
- StephenWeinsteinLv 71 decade ago
1. The "dwelling fire" policy only pays if there is a fire. If the occupant destroys the house without burning it, the insurance pays nothing.
2. The policy that says "vacant" also pays nothing if the occupant destroys the house. It would pay if something happens to the house after the occupant is removed and before you move into the house.
3. Agents know that if the policy is sold, they get a commission, and that if nothing happens to the house, then they are not likely to be sued. They also know that a fire that kills someone is very rare.
- ?Lv 45 years ago
Sweetie now not THOSE variety of advantages. Of path YOU are aware of it's booty advantages. I had a kind of peers as soon as upon a time, it was once loverly a few fine afternoon delites. Unfortunately he received transferred. It can paintings if you happen to determine a few elementary recommendations and do not market it the connection to all.
- ?Lv 71 decade ago
If the owner (you) does not reside in the house then who ever is living there is considered a tenant
There is no other classification. Have you tried the company that insures your cars?
