Homeowners Claim Denied

[neelyd1]

This is somewhat complicated, so I'm going to try and be as succinct as possible. My wife and I moved to a new state about 6 months ago, and had put our previous home on the market about three months before we moved. Well the house did not sell, and there was some extremely cold weather, and the pipes froze and burst inside the house, causing "extensive" water damage to both the upstairs and downstairs. I had continued to pay the premiums and the mortgage in spite of the financial difficulty that this caused my family, believing that the house would be covered. However, I failed to change our address and notify the insurance company that we had moved and that the home was now vacant. When I found out about the damage from my former neighbor, I notified the insurance co. of the claim, and was told that this company does not cover vacant houses. The adjustor told me that the claim was being denied because the heat had not been turned on, and that this was a "failure to maintain the property". Also the listing with the real estate company expired, and I was not notified by my agent even though she says she did leave a voice mail message (that i have no recollection of ever receiving.) So, the adjustor told me that even though our claim has been denied, our mortgage company now has the right to file a claim. My questions are, how is all of this going to affect me and my family, and will the insurance company file a claim, and how will that affect me and my family?

 

[FlyingRon]

You're pretty much screwed. Homeowner's insurance has such restrictions and the real estate agent is under no obligation to remind you that the her contract has expired. You were supposed to have known that because you signed it.

Further, without valid insurance coverage, your lender may indeed go out and obtain the appropriate "forced" coverage for you which will cost you dearly.
Even for occupied properties that can be like five times what you would be paying.

 

[neelyd1]

Not exactly what I was hoping to hear, but I really wasn't expecting anything differently.

Thanks for the reply
d

 

[dafirestar]

Homeowners

Don't go down like that. I'm an expert in the field. If you lived in MI my license would allow me to work for you however for you not to pursue this situation would be criminal on your part. You must make a claim; file a proof of loss. At that time if your denied you would hire an attorney. You can't lie down on this, yes your supposed to maintain your property for coverages to be in affect, however with a large mortgage and the insurance company knows dam well that they have exposure they may not deny and pay you anyway. They at the very least are going to have to pay the claim to the bank, so they may choose to simply pay you rather than your mortgage company and the attorney's.
Jim C

 

[Zigner]

Don't go down like that. I'm an expert in the field. If you lived in MI my license would allow me to work for you however for you not to pursue this situation would be criminal on your part. You must make a claim; file a proof of loss. At that time if your denied you would hire an attorney. You can't lie down on this, yes your supposed to maintain your property for coverages to be in affect, however with a large mortgage and the insurance company knows dam well that they have exposure they may not deny and pay you anyway. They at the very least are going to have to pay the claim to the bank, so they may choose to simply pay you rather than your mortgage company and the attorney's.
Jim C

Strange - why would an "expert" post such hogwash?

 

[JustAPal00]

Don't go down like that. I'm an expert in the field. If you lived in MI my license would allow me to work for you however for you not to pursue this situation would be criminal on your part. You must make a claim; file a proof of loss. At that time if your denied you would hire an attorney. You can't lie down on this, yes your supposed to maintain your property for coverages to be in affect, however with a large mortgage and the insurance company knows dam well that they have exposure they may not deny and pay you anyway. They at the very least are going to have to pay the claim to the bank, so they may choose to simply pay you rather than your mortgage company and the attorney's.
Jim C

WHHHAAAATTTT????? If an insured has the home insured as "owner occupied" and then moves out leaving the home vacant for 6 months and fails to notify the insurance company, the can and will deny the claim!