Will my paid-in-full home insurance cover the new owner of the property?
"If I pay for my annual home insurance premium in a lump sum and then sell my house before the policy ends, will the policy cover the new owner if the property is damaged after the sale?
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Answered on Apr 05, 2021
“Home insurance is designed to cover people with an insurable or financial interest in the home. Once you sell the home, you no longer have any financial interest in it. Therefore, your home policy will not cover the new owner once the title has been transferred to their name.
If the new owner has a mortgage, the lender would have required them to have a homeowners policy in place before closing on the home. You should cancel your policy as soon as the sale has closed and the home is in the new owner’s name. “
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