I just moved out of my house and rented it out. During the move I noticed several cracks in my house. There seems to be a hole that has widened in a neighboring lot that is quite large now. Will my insurance company cover me if I have moved out and put renters in? What do you suggest. I can move right back in if needed, it is a month to month.
As long as you have the coverage there should not be a reason your policy would not cover the damage if confirmed to be sinkhole related. We have a lot of clients that have rental properties with coverage. It really does not make much of a difference typically if you live at the property or not. You own the house, you bought the policy and everything should be covered even if you do not live there. Now, there can be some tricky exclusions that we see arise on occasion for properties that are vacant or left unattended for a certain period of time. Most policies will have these exclusions for homes that just sit with no maintenance and no security. In your situation it does not sound like that is an issue as you have renter in place. I would suggest that if your property ever sits for more than a couple weeks without a renter you make sure to go over and take care of whatever maintenance issues there are and make sure to keep the property in good shape and document every time you do go over and keep receipts on maintenance you do. This will help you if the “vacant” argument ever comes up. The biggest issue with renters in a situation like yours is just the reality of having to work around them. Obviously, most renters are not happy about having engineers and lawyers come snoop around their house and disrupt their day. Often these claims can run renters away due to the hassle and the fear of a sinkhole. This is probably what I would consider more than anything if you are filing a claim.