Avoiding Insurance Nightmares With Vacant Homes

After Jeff and Cynthia (not their real names) built a new home a few years ago, they kept their original home as a rental property. They learned quickly that keeping good tenants in a rental home can be a challenge. Last year they had to evict their problem tenants, and they spent several weekends cleaning the house and repairing their tenants' damage. Full of hope, they finished the work, and set up an appointment to sign a lease with new tenants.

The house burned to the ground the night before that appointment. They watched the firefighters fight hopelessly against the blaze. They saw their investment go up in smoke, and they felt the gut-wrenching emotions of seeing their first home destroyed.

House fires are always investigated, and the inspectors found traces of gasoline and a gas can in a closet. They interviewed Jeff and Cynthia, although they had no evidence that they had set the fire themselves. They investigated the former tenants and the neighbors, but were unable to determine the arsonist.

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