Sell Your House, Keep Your Policy
Moving? Renew Your Homeowners Insurance Policy Anyway.
When it’s time to move, celebrate your closing and keep your current homeowners insurance policy in effect until after the deal is signed. If you are selling your house, letting your coverage lapse, even for a space of a few weeks can be a risk. Fudge Insurance’s Jared Townsend encourages clients to renew a policy, even if the sale date is only days after the insurance renews.
“You want to avoid self-insuring and paying for losses out of your own pocket,” Townsend says. “Keep your policy in force until you close the sale,” he advises, since the unexpected can happen, even up to the last minute.
Instead, renewing your policy-even if you are residing in a place for a short time can be more advantageous. “When you do cancel the old policy you will receive a pro-rata refund,” Townsend explains.
Whether you’ve sold your house or you’re still in the process of selling it, before you close on your new home, it’s best to have your agent write a new policy to fit your newly purchased residence. Then, once you move, you can cancel your current policy and retain the new policy from your agent. “Insurance will not transfer to a different property,” Townsend says, “so you will need a new policy before you close on your new home.” When you know a move is coming, here are some steps to follow:
- Keep your current policy in place to avoid a lapse in coverage until after the sale is closed, even if it means paying for the renewal of the policy
- Send your agent a signed cancellation request along with a copy of your HUD statement after your sale closes
- Set up a new policy for your new residence before your new purchase closing date
Please contact us with any questions about changes in your homeowner’s insurance policy.
