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If you’re putting a house on the market, you may be wondering what happens to your home insurance policy. Do you get back the premiums you’ve paid, or can you transfer the coverage to the new residence? Knowing what to do with your coverage and when to cancel the policy can save you money and help prevent expensive mistakes.

A Guide to Home Insurance & Selling Your House

Transferring Coverage

The home insurance policy is tailored to the specific features of your current house, including its value and the neighborhood it’s in. The new home will likely have different safety measures and risks, so you’ll need a new policy to provide the protection you need. Since every property is unique, the current coverage can’t be transferred to the new residence.

When to Cancel

home insuranceMany homeowners decide to cancel their coverage as soon as they have a signed contract. However, this can leave you exposed to serious risks that can derail the sale.

For instance, a falling tree can destroy the roof before transaction, leaving you with thousands of dollars in unexpected repairs. If you can’t fix the roof before closing, the prospective buyers may walk away from the sale.

Getting a Refund on Your Premiums

Insurance companies usually offer discounts for homeowners who pay their premiums several months or a year in advance. If you sell the house and cancel the policy before the renewal date, the carrier will refund any unused premiums you’ve paid. To expedite the process, inform your agent once you decide to put the property on the market.

 

If you’re buying a house in the Tennessee, Alabama, and Georgia Tri-State Area, Southern Insurance Associates in Hixson, TN, will help protect your most valuable investment. Their agents will take the time to find a home insurance policy that’s tailored to your needs. Visit their website for more information about their products, follow their Facebook for tips, or call (423) 296-0626 to request a free quote.

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