What If I sell The Property During The Home Insurance Policy Period?

You can sell your property any time you wish. The same goes for your homeowner’s policy. However, what is important is the timing. If you cancel your home insurance policy even before the property has been transferred to the new owner, then the liability is still with you. What happens if a mishap takes place, or your property is damaged? You will have to bear the financial burden yourself. This is because the new owner may not yet have got a home insurance cover, because the property has not yet been transferred in his name.

Ideally you should wait till the property title transfer has taken place on record. Then if you cancel your policy, you will also get some refund on the unexpired portion of the home insurance. In case you are going to insure your home with the same insurer, then you can work out a deal.

Your home insurance agent can help you time the cancellation of your old policy and also help you get your new one. Keeping your insurance company informed will ensure that there us that there are no gaps in coverage. In case you plan to transfer your policy, instead of taking a refund on your old policy; the amount would also be transferred to your new policy.

Once the title has passed over to the new owner, there is no point in keeping your old policy; as in case of any damage neither you nor the new owner can claim damages. If you stay with your insurer, you may be able to transfer your old policy to your new property. You will have to provide your agent with your schedule of moving out, so that coverage is properly transferred to the new home.