Home Insurance in Loxley>Question Details

Michael, Home Owner in Loxley, AL

Non resident purchased property in loxley. Has parents living in it. Would there be any problems with homeowners insurance coverage?

Asked by Michael, Loxley, AL Wed May 30, 2012

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Tia Stanley’s answer
Might be considered as a tenant which may cost you a little more. Better to be upfront with your insurance company than get a surprise if you have to file a claim. Call Glen Gorowsky Insurance and ask Glen if there is a concern 251.626.9566. You may be fine, but I recommend being sure. As they are immediate family it may be viewed differently.
0 votes Thank Flag Link Wed May 30, 2012
In this case with the house in Loxley AL the property was bought to house the parents as their house burnt down & they had no insurance. They do not pay rent. The owner visits the US each year . Insurance co. has been told about this & has put occupancy status as "Seasonal". Any further advice please.
Flag Wed May 30, 2012
Depends. The non-resident should have the right type of coverage (landlord's coverage--covering the structure). The parents should have renter's insurance. But that's done all the time--at least a landlord with tenants living in the property. The risk is that the non-resident didn't reveal all to the insurance company when obtaining the insurance. That would give the insurance company a huge opening to decline any claims, based on a falsified application. The non-resident should make sure that the insurance is appropriate and correct. If not, it should be corrected immediately.

Hope that helps.
0 votes Thank Flag Link Wed May 30, 2012
Don Tepper, Real Estate Pro in Burke, VA
If the owner doesn't reside at the property then a traditional homeowners policy will not suffice. The best type of policy would be a landlord policy. Similar to a homeowners with an allowance for nonowner residents. We write these all the time but the situtation is usually reversed where the parents buy a house and the adult children live in the home.
0 votes Thank Flag Link Wed May 30, 2012
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