Many northern retirees have two addresses: one in their home state, such as Michigan; a second home/condo in Florida or Arizona. All have plans made to receive information if something happens to their house while they are enjoying warm southern weather during the usual nasty northern winters. A neighbor or family member keeps an eye on the house and goes inside periodically to check for damage – say a critter has chewed a hole in the soffit or a pipe has burst during a brutal cold spell. The plan is: “If you find any damage let me know and I’ll call the insurance company and get a contractor to fix it.”
Will the company honor the claim? Maybe not.
A recent decision of the Michigan Supreme Court reminds us that we only have insurance according to the strict words of the policy. The case is Yu v. Farm Bureau Insurance Co of Michigan. That case turned on the policy’s “occupied” home provision.
Homeowners can rest assured that they can go on vacation and their homes are insured. The same is true for Snowbirds.
But.
All policies have limits on the definition of “occupied.” A common term is that the owner shall not be absent from the home for more than six consecutive months.
So, what if a Snowbird leaves with the first freeze on November 1st and comes back May 15th? What if a spring windstorm blows a heavy tree branch into the roof on May 10th? What if they have a six month limit on unoccupied status? November through April is six months. Is the damage insured? Doesn’t look like it. It looks like the insurance company will deny the claim.
So, limiting one’s absence to just under the policy limit will guarantee coverage? Maybe not.
A policy may also have a requirement that the homeowner exercise due diligence with respect to maintaining the home while the owner is away. There can be other restrictions.
The moral is simply this: check your homeowner’s policy for your “occupied” coverage. An insurance company may legally put many restrictions on your coverage. You should review your policy and speak with a company representative to be sure you are reading it the same way they do.
