Owning property and not living there or

[recycled sixtie]

not renting out.

It seems completely obvious to me and it tells me time and time again if a property is empty sooner or later it will get broken into and either stuff gets stolen or squatters move in.

The other factor is that if you live a long way away from your property it is harder to keep an eye on it.

People I know or are related to have had the following happen:

-property in Phoenix area have had their property broken into and all furnishings stolen.

-property in a gated community in Phoenix area broken into. There was no security system in place.

-property in Edmonton area was broken into while they snowbirded down south.

These are just the properties I have heard about.

My advice? If you want to buy a second property make sure it is occupied.
-Gated communities do not necessarily prevent breakins.
-Make sure security system is in place but does not necessarily prevent breakins...
-If you own a second property it is better if it is close to where you live.
Hope this helps....G

[porwolf]

Originally Posted by recycled sixtie

not renting out.

It seems completely obvious to me and it tells me time and time again if a property is empty sooner or later it will get broken into and either stuff gets stolen or squatters move in.

The other factor is that if you live a long way away from your property it is harder to keep an eye on it.

People I know or are related to have had the following happen:

-property in Phoenix area have had their property broken into and all furnishings stolen.

-property in a gated community in Phoenix area broken into. There was no security system in place.

-property in Edmonton area was broken into while they snowbirded down south.

These are just the properties I have heard about.

My advice? If you want to buy a second property make sure it is occupied.
-Gated communities do not necessarily prevent breakins.
-Make sure security system is in place but does not necessarily prevent breakins...
-If you own a second property it is better if it is close to where you live.
Hope this helps....G

My advise: Get insurance!

[fintstone]

Originally Posted by porwolf

My advise: Get insurance!

Most insurance companies will not insure a vacant house...or will not pay for damage/theft if vacant more than 30 days.

[nvr2mny]

Time for a new insurance co. then. We live 1600 miles from our vacation home. Don't rent it out either. We get there about 3-4 times per year for about 7-10 days each time. We've been doing that for @ 15 years and never any problems. We do have a security system and are in the process of installing wireless cameras tied to motion with an text alert. I guess we've been pretty lucky so far.

[Venetian]

I know numerous people that have more than one home with many being vacant for months both in Canada and US(Phoenix area). I have never heard of any of them having issues. Most I believe have people checking the vacant residences on some sort of schedule. I also believe this is required by insurance co's.

[fintstone]

Had all the appliances stolen out of my house in Las Vegas in broad daylight (Expensive house in gated community).

[fintstone]

Originally Posted by nvr2mny

Time for a new insurance co. then. We live 1600 miles from our vacation home. Don't rent it out either. We get there about 3-4 times per year for about 7-10 days each time. We've been doing that for @ 15 years and never any problems. We do have a security system and are in the process of installing wireless cameras tied to motion with an text alert. I guess we've been pretty lucky so far.

They are all fine until you make a claim.

[wdfifteen]

[QUOTE=recycled sixtie;7850232]not renting out.

It seems completely obvious to me and it tells me time and time again if a property is empty sooner or later it will get broken into and either stuff gets stolen or squatters move [QUOTE]

My mom hadn't been in the nursing home a week before they broke into her house. It's like they can smell vulnerability.

[wdfifteen]

Originally Posted by nvr2mny

Time for a new insurance co. then

That's just what they're counting on. How many insurance companies do you have to go through, how many premiums do you have to pay, how many losses do YOU have to absorb, before you find an ins. co. that doesn't f$&k you over in the fine print.

[RedCoupe]

I'm an insurance agent and own a small insurance agency. You are all correct - you can think that you have coverage for a certain loss only to find out that the particular coverage you needed is excluded from your policy! There are a few things that you can do to prevent unwelcome surprises when something bad happens. First, buy your insurance from a local agency, not from a company that only sells policies over the internet or an 800 number. Shop for an insurance agent like you would your doctor or lawyer. Make sure that you can actually meet with the agent, not just the customer service rep. Second, be completely honest with agent about the home you want to insure, the contents, and how often you will be occupying it. Or, in the case of your Porsche, tell the agent an accurate estimate of your investment in the car and how you drive it. If you go to an auto cross every other week and four track events a year, tell the agent. If you don't disclose something, it very well may not be covered. Third, keep good records. If you have a fortune in automotive tools as I do, keep a spreadsheet or some kind of list of what you have. Same thing for your furniture, art, jewelry, and gun collection. Although all these times fall within the Personal Property coverage of a policy, sub limits may apply for each type of property, so you will want to tell your agent what the estimated value is of each type of your property. And, finally, ask for sample copies of insurance policies before you buy. Policies vary a great deal between companies, even the major companies, so you will want to have the agent review the important parts of a policy before you sign on the bottom line. Yes, there is insurance for vacant houses, homes that are only occupied occasionally, or your 1986 Carrera with $20,000 in upgrades, but it may take a little research to find what you need. Who your insurance agent is and who the insurance company is doesn't matter unless you need them and then it is critical. Find somebody who will take the time to learn about you, and then check back on a periodic basis to see if anything has changed.

[nvr2mny]

RedCoupe makes some very valid points. I've been dealing with my "agent/broker" for over 35 years. He handles all our lines, commercial and private. He "knows" our situation and needs. He goes to bat with the provider on our behalf when we've had to report claims. Something you will not get over the internet. Our provider on our homes is very competitive for the types of properties they are insuring. While not "cheap" (just what you don't want in the event of a claim, I've found tremendous piece of mind in our relationship with an agent who's turned into a good friend. As an example of the type of service provided from the company insuring our vacation home in an remote area of the mountains, if there's a fire in the area (serviced by a volunteer fire dept) the insurance co. will dispatch a crew to foam encase the home and stand by to "insure" its safety. Afterwards they clean it up. It's in the policy and covered in the premium. Feel free to pm me for more info.

[BlueSkyJaunte]

So....what is it with all you Canucks down here in PHX, anyway??

[fintstone]

There may well be special policies that cover vacant homes for theft/vandalism...but I image they cost a lot more to cover the additional risk which is obviously there as the OP and other posters have observed. If that is your intent, make sure that is what you are purchasing. All I can say is to read your policy carefully if you believe you are covered. If your policy says otherwise...like mine does...either you or your agent/adjuster would have to lie to be compensated (which I will not do). A special or personal relationship with your agent does not alter your policy. One or both of you are committting fraud if you collect on your policy under circumstances not covered. In most cases you will have to produce a police report (so you will have to lie to them too).

RedCoupe is "on the money"...good post by someone with some expertise in the area. Thanks!

[porsche4life]

So....what is it with all you Canucks down here in PHX, anyway??

Is there anybody here that's not an import? It sure didn't seem like I met anyone this week that wasn't...

[recycled sixtie]

Originally Posted by BlueSkyJaunte

So....what is it with all you Canucks down here in PHX, anyway??

First of all ReCoupe I appreciate the time to explain insurance coverage in fine detail.


BlueSky you are right in that there are lots of Canadians in PHX. Can you blame us what with the winters we have here? Conversely your summers are as you say hot as hell. We could not live there in the summer but of course many do.

When we go south which is not very often we go into a hotel. The rooms and beds are made up for us. We eat at restaurants most of the time. At the end of it we pay our bills and walk away.

Not wanting to discourage folks from buying second properties but 50 years ago in the UK I witnessed a bunch of nonsense that my parents went through. My father bought 22 lockup garages in the city of Basingstoke. We lived a 4 hour drive away.
Profits were diminished by many claims for locks repaired, doors damaged. Whether these were genuine claims we did not find out. However my father did not take the time to oversee the property because of the long drive. After a while he got fed up and sold them.

Our condo which we rent out is 3 blocks away from us. Superb tenants. If there is a problem we are right there.....

[RedCoupe]

Flintstone is right. What the policy says is what matters, not withstanding what a less-than-knowledgeable salesperson might tell you about a particular coverage. That's why getting a sample policy up front is so important. You can go over all the fine details of what would be covered, and the method of payment should there be a loss. There are several different methods that insurance companies use to determine how much you are owed in the event of a loss (replacement cost, stated value, actual cash value, and others) and one policy can actually employ different payment methods depending on the type of loss or how or when it was reported. I would be happy to answer any general question in a PM, but insurance law is state specific so I couldn't be very helpful if you don't live in AZ.

[fintstone]

Good point. I bought my current house for a little more than $500K (market was very depressed/undervalued and still is here). As is typical, my mortgage company required that I insure it for at least the loan value of about $500K (which includes the 10+ acre lot). My insurance company insures for replacement/build cost. They researched the house and determined that the actual rebuild cost was likely higher. They hired a company that did an appraisal/analysis of rebuilding the home which was closer to $1M. They base my premiums on that (even though I could only sell the home for about $500K).