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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Answer
“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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Jackie Whalen
Answered on Apr 05, 2021
Jackie Whalen has been in the insurance industry for over 7 years, working in sales, service and claims. She has won numerous awards as a top salesperson and customer service agent. She currently lives in New York with her husband. Her 24 year old son recently moved out on his own which has given her more time to travel, write and train her dog Maisy not to chase her cat, Whiskey.
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