Options for Lapsed Homeowner Insurance in Maryland
I’m reaching out for advice regarding my late father’s home in Maryland. He passed away last year, and while the estate is expected to settle within the next two months, the homeowner’s insurance has lapsed. Despite our efforts, our broker has been unable to find coverage for the house.
The property is currently vacant and is in fairly poor condition. It is located on the waterfront in a community that lacks fire hydrants. One of my siblings will inherit the property once the estate is finalized, but I’m concerned about leaving it uninsured in the meantime.
What options do I have for obtaining insurance coverage in this situation? Any guidance would be greatly appreciated! Thank you.
I’m sorry to hear about your father’s passing and the challenges you’re facing with the property. Here are some options you might consider for insuring the vacant house in Maryland:
Vacant Home Insurance: Look for insurers that specialize in vacant home insurance. Since the house is unoccupied, a standard homeowners policy may not cover it, but vacant home policies are designed specifically for properties that are not lived in for an extended period.
Specialty Insurance Companies: Some insurance companies specialize in high-risk properties or unique situations, like homes in disrepair or those located in areas without fire hydrants. They might be more willing to offer coverage despite the property’s condition.
Flood Insurance: Given that the house is waterfront, you may want to explore flood insurance, especially if the property is in a flood zone. This coverage can be separate from standard homeowners insurance.
Consult with Multiple Brokers: If your current broker is unable to find coverage, consider consulting with other insurance brokers who might have access to different markets. Sometimes, shopping around can uncover options that others may not have.
Consider a Surety Bond: Though not the same as insurance, a surety bond can provide some financial protection against specific risks and might be an option worth exploring, depending on your needs.
Liability Coverage: If you’re unable to fully insure the property, consider taking out a general liability policy. This can offer some protection against liability claims, even if it doesn’t cover the structure itself.
Homeowner Association (HOA): If the property is part of an HOA, check if they offer any insurance options or if they have recommended providers.
Temporary Insurance: Some companies offer short-term insurance solutions that might allow you to have coverage while you sort out longer-term options.
Make sure to keep detailed records of any communications and consider reaching out to a lawyer or estate planner for additional advice regarding your specific situation. Good luck!