Strange home insurance quote
 

Friends just bought a nice home in TV from a couple who are moving into assisted living.

They were getting insurance quotes and one company offered them a $1,300 discount if they rented their home out occasionally. .

WTF?

Insurance thought that in the event of a flood somebody on the premises could take steps to minimize damage? All i can think of.

IMHO, this only makes sense if the insurance company thought the home was going to be empty for an extended period, if the new owners are moving in right away this makes no sense at all.

Doesn't make sense. If a renter (or anyone for that matter) gets injured in the home, the insurance would pay for it. There is also a chance a renter may steal something from your property or perhaps even vandalize it. It would seem if you told an insurance company you plan to rent your residence, the rate would go up because of an anticipated risk. In today's market, I would guess some insurance companies would not write a policy at all. Too high of a risk!

I think because the home would no longer be a residence but now a business, you would have to purchase a type of insurance that covers businesses and business loss. Landlord insurance? Homeowners insurance would not cover a rental business.

I’m actually surprised insurance companies don’t set up homewatch services in places like the villages, where places are empty for periods of time.

It may be that the OP's friends didn't get the whole reasoning from the insurance company. Typically, insurance companies charge a standard rate for an owner-occupied house. They charge a higher rate for a house that is always rented, the landlord rate. They also charge a higher rate for a vacant house, when it is not occupied for several months. Apparently, there are some snowbirds who are not paying the appropriate insurance rate, because they should be charged for the vacant house rate.

Only answer which makes sense, along with Retiredguy. All the others, meh . .

BTW, the insurance on my unoccupied mom's house in MA is normal because the company said "the furniture is still there, fully furnished" which makes no sense whatsoevah. But maybe i am not tracking the premiums closely enough.

However, I had that discussion TOTV already . .

Thanks VT

Are you kidding? It makes all kinds of sense! I just can't believe someone has finally discovered an insurance company that
has figured it out!

GIVE! WHAT'S THE NAME?

Think about it -- this insurance company has finally figured out that the Villages is not a ramshackle suburb of Miami where an unoccupied house falls apart.

In fact, a seasonal rental in the Villages is the most risk-free property to insure possible -- particularly if some previous owner has already scammed his previous idiot insurance company out of a new roof!

Think of it -- you're talking about a property that is built to 110 mph hurricane standards, 80 miles from the ocean. In fact, it's probably built from concrete blocks with steel studs! The entire development is a giant flood-control project, with retention ponds that can be pumped to move flood water around as necessary! Regardless of location, every home is less than 5 minutes from a fire station. There is a constant neighborhood watch to prevent theft, and to guarantee that the property cannot become an eyesore. Children -- the source of most crime and mischief -- are not even allowed. The house will be surrounded by old people, who are home all of the time and see everything that goes on in their neighborhood. Chances are, the owner even lives less than 15 minutes away and inspects the property regularly, himself. He probably even has a monitored fire and security alarm system.

And on top of all that, this house will only be exposed to the risks of occupancy -- cooking fires and plumbing disasters -- for four months out of the year!

I actually own a 1200 sqft Courtyard Villa seasonal rental exactly like that. And it costs me $2000/year for insurance THAT DOESN'T EVEN COVER THE ROOF! That's TWICE what my 2000 sqft home in Texas cost to insure, way out in the country, 20 minutes from any fire station and 80 miles from the ocean, and not built to any hurricane standard whatsoever!

Wow, an insurance company has finally pulled their head out! NAMES! WE NEED A NAME!

Why would they do that, when the development already does that for free?

My question is, why is there no insurance company that already knows that?

histrionic typing issue?

No just a histrionic Florida Insurance issue!

A guy just reported that he found a NON-crooked insurance company! That's news!

Why isn't everyone begging to hear the name? Do you LIKE forking over your retirement savings to some crook so he can use it to subsidize idiots who live on the beach, or the other idiots who use their "full replacement policy" to steal a roof every time a hailstorm blows by?

Yeah, you're right. On this subject I'm real HISTRIONIC! And you should be to!

Wasn't the concept of the OP that if you rent your home part-time you get a discounted premium? I understand your frustration about high premiums, but the OP was asking why would there be a $1300 premium deduction if you rent your home. I think perhaps this is why you are being teased. Your response is not about the post.

working towards a mute/block/ignore

however you read it, its your brain. . not mine

$1300 off of what price and for what size home? Full quote may be way high without details.