03/31/2026
Public Service announcement:
Recently, a law group pointed out the danger of having a homeowners policy in place when the named insured (the homeowner) or resident spouse did not reside in the house.
In this case, the summary stated the homeowners policy only named one person, and he had moved to another state. His adult sons moved into the home, and a fire damaged the structure as well as personal properly owned by the sons. The insurer denied the claim on the house as well as on the personal property of the sons because it was not their “residence premises.” The policy referred back in part to the definition of residence premises and what they cover:
15. "Residence premises" means:
a. The one-family dwelling where you reside;
SECTION I - PROPERTY COVERAGES
A. Coverage A - Dwelling
1. We cover:
a. The dwelling on the "residence premises" shown in the Declarations, including structures attached to the dwelling
The argument of the insurer was that since “you” (named insured or resident spouse) did not reside in the house, it was not the “residence premises.” Thus, Coverage A did not apply because the house was not on the “residence premises.”
Bizarre? It sure sounds that way.
During my days of full-time employment with FAIA I did a one-hour class titled, “Catastrophic Homeowners Exclusion – Where You Reside.” In that class, I cited numerous examples (as well as actual cases I was involved in) where the facts showed that a homeowners policy was in place and:
• The named insured had moved out years ago and had tenants in the house for multiple years. One claim involved a total loss fire that was denied.
An elderly single lady moved into a care facility with no intent of returning to her house, yet the family watched over the house for several years, visiting weekly to make sure there were no issues.
A lender had foreclosed on a home after the named insured failed to make mortgage payments. The named insured moved out, leaving the home vacant and unoccupied.
A married couple divorced. The homeowners policy named only the husband, and he had moved into a rental house on a full-time basis.
The owner of a home sold it but leased it back to the new buyer for several months while keeping the homeowners policy in place.
The owner of a home listed the house for sale, furnished. The owner moved to another state and purchased a house there, all the while waiting for the old home to sell.
In all cases above, neither the named insured nor resident spouse “resided” in the house, and coverage was denied
These situations show that there are life changes, and many people don’t think about speaking with their insurance agent on how that affects their insurance policy.
Informing your agent that the named insured or resident spouse doesn’t reside in the house AFTER a loss takes place is never the right time. When the insurance agent is aware of the situation, they can correct the policy or re-write it if necessary.
The takeaway:
Regular contact with your agent keeps your insurance information updated.
It’s important to inform your agent on who resides in a house BEFORE a claim, especially if it is not the homeowner. Also, when you get married, divorced, death of a spouse or remarried. (Adding the name to a policy, does not change the deed on record)
When speaking with your agent, take a few minutes to inform your agent of any changes you may have completed.
Other Examples include: Changing the deed from the homeowners name to a Trust, big financial investments such as pools, buildings or upgrades to the house. Replacing the roof can save you money as well.
At Baker-Harris we are available to discuss any changes you may have, big or small. Give us a call!
