Some, if not most, insurance policies will not cover a vacant house. If you inherit a house and no one is going to live in it, the insurance company may cancel the policy. (Thanks to Google Groups for this topic.) What do you do?
There are a few options, none of which may be perfect.
First, you can keep the property furnished and live in it one weekend a month, or one night a week. If the property is close by, this works. If the property is not nearby, this probably does not work. This probably also does not work on a long term basis. But, it is an idea and does work for some people.
Second, and probably the better option, is to ask an agent for a DP-3 policy. This is a dwelling policy that covers only the building. (There is no contents coverage.) This is the type of insurance policy you would have if you owned a rental home. Most insurance companies will write coverage on a house like this under a DP-3.
Third, you can rent the property out. You may not want to be a landlord, but it may cover some of the expenses while you try to sell the house. With a rented property, any major insurance company will insure the property. This options allows you to get coverage, but it does make you a landlord.
When you inherit property, there may be no good way of getting the property insured – unless you live there. These three ideas, however, will provide you with a little piece of mind that you can get insurance until the property is sold.