What Your Real Estate Agent Doesn’t Know Actually CAN Hurt You!
Scott and I have never been prone to voicing any public comparison between us and others in our industry. We were raised to let our actions and our client’s experiences speak for themselves. But, after witnessing several situations that could have led to major financial losses for people we care deeply about, we knew it was time to speak up.
As it is in any industry, not all real estate practitioners are equipped with the same knowledge sets, tools, or motivation. In fact, due to a number of factors, the difference between “real estate agents” can be profound, and this fact has the potential to take a significant toll on a client’s finances and outcomes. Yet, many buyers and sellers don’t realize that choosing the right agent is just as critical as selecting any other financial professional responsible for handling your wealth.
Here is just one example where bad advice (or no advice at all) can lead to catastrophic financial consequences—and a few simple steps you can take right now to protect yourself.
firefighter, fire damage
The Hidden Risk: Vacancy Insurance Loopholes
Many homes sit vacant during the selling process. What most homeowners don’t know is that if a house is empty for 30-60 days, standard homeowners' insurance may automatically lapse—leaving the property completely unprotected against theft, vandalism, fire, or flooding.
Since insurers classify vacant homes as high-risk, claims can be denied outright, often without warning. If a fire breaks out or a pipe bursts and goes unnoticed, you’re on the hook for the full loss—even if you still owe a mortgage. That’s a financial disaster no one should ever face.
Quick Action Steps (Takes 5 Minutes!):
Call your insurance provider and ask:
- Does my policy cover a vacant home beyond 30 days?
- If so, for how long, and does this change if my home is under contract?
- Is a vacancy endorsement available or do I need a separate vacant home policy to be covered?
If you’re selling a home that might sit empty, don’t wait—make sure you have proper vacancy coverage in place. A five-minute phone call today could save you from a six-figure loss tomorrow.
One final IMPORTANT note: If you are selling one of these properties while serving in a fiduciary capacity, (PR of an estate, Trustee, or POA, etc) and the property is lost or damaged, it is highly likely that you may be legally responsible for repaying the full amount of the loss to the estate, principle, or beneficiaries to whom you have legal duties. Think about it. If you are the one legally responsible for “acting with reasonable care, diligence and skill” and fail to have the proper insurance in place, a court could find you personally responsible to reimburse the principal or the beneficiaries you have a duty to protect the total amount of the loss. That means that if the property in question is worth $350,000 and it burns down, you are in serious financial trouble.
This is just one example of the many hidden issues that are often overlooked when dealing with real estate. It is also a real life example of why it is so important to interview and select your representation carefully. Vacant homes are a common occurrence, and when we are searching for homes with our clients, we often wonder just how many of these owners know how financially exposed they may be. Risks like these, along with others, are very real! Please remember that all agents are definitely NOT the same and to interview until you find the right professional that can truly protect your interests.
We hope this blog provides value to each of you. We’ll continue to do our best to provide information that you can use, so look for more topics like this in the coming months. As always, if you have any questions or would like some guidance on protecting your real estate investment, please reach out to us at contact@expectmoore.com or 616-318-1322. We’re always here to help.
Scott and Kevin Moore