In the past, a home buyer would write an offer subject to selling their current home. Because the market is so competitive, prospective buyers write offers that are not contingent upon selling their home. When their offer gets accepted, they close on the new house and then sell their existing home carrying two mortgages.
I have seen buyers move out of the existing home into the new house, which leaves the existing home unoccupied or vacant. This leaves a home vulnerable for many reasons.
One reason is that insurance companies may require regular home checks, also known as “home watch.” In fact, according to the National Home Watch Association, some Canadian homeowners insurance require Home Watch visits as often as every 48 hours when the home is unoccupied. An insurance claim may only be allowed if regular house checks are made. Please check your policy for more specific details.
Another reason is the possibility of system failures, such as your furnace, water heater, or sump pump. If these systems fail and go unnoticed, they could lead to severe water damage, flooding, mold, and more.
Lastly, we have seen an uptick in squatters and crime in homes when the owners are absent. We have all seen stories on the news about what could happen to your home by these unwanted squatters and criminals.
In closing, please don’t leave your home to chance or gamble with the odds of nothing happening. I understand your neighbor or family member may be willing to keep an eye on your home, but ask yourself these questions: Are they qualified to watch your house? Do they meet the insurance company’s requirement if a claim is made? Will they make sure your home is taken care of like you would? Can you hold them responsible if they don’t check your home and something happens?