The one thing you need to deal with quick cash house sale is your homeowner’s insurance. In real estate, selling a house means selling everything that is attached to it, including any insurance coverage that protects your house from untoward incidents. In selling your home, you have the option to transfer the coverage to the new owner or canceling it to give way to the buyer’s personal homeowners insurance.
Before selling your home or contacting an agent to put your house on the market, here are some information you would want to know about your insurance policy – if you have one – for your home and avoid any coverage gaps that would make an impact in your house value in the market or your insurance records.
A Review on Homeowners’ Insurance
About 85% of the population in the US that owns a house has homeowners’ insurance. It is what covers them from any liability they would incur in their home, whether internal or external liabilities.
The coverage of the insurance includes protection from natural calamities (i.e., snow, storm, hail, etc.), archaic calamities (aging pipes, weaker walls, etc.), vandalism, and theft. Personal liabilities include medical coverage for any injuries that you or your visitor might get from pet scratches or bites, scrapes from loose nails, or tripping over from pathway gaps.
In real estate, homeowners’ insurance is a requirement in getting a mortgage loan. Buyers pay a premium of the insurance as part of the sale price of your house which is determined by your real estate agent. You, as a seller, already has this and will get your money once the mortgage has been fully paid. Until then, the taxes and insurance you’ve prepaid will go to an escrow account.
Is It Needed to Sell Your House?
If you don’t have insurance for the house you’re trying to sell, you don’t need to get homeowners’ insurance to put your home in the market. If you do, however, you should give it some time to learn more about your coverage before passing it over to your buyer or canceling it altogether.
Homeowners Insurance Policy Transfer or Cancellation
You should consider these options when the sale contract has closed or is on contract-to-close status. You don’t want to decide on this right away. Also, when your insurance escrows, there won’t be a need to cancel as you would get a refund check from your lender that will indicate the payment of your mortgage loan.
If this does not happen, you may want to contact your mortgage company right away and inform them about the changes. Also, it is best to work closely with your agent in selling your house. The financial status of your buyer and their payment method for your home would affect the transfer or cancellation of your insurance policy.
The Best Homeowners’ Insurance Policy for You
The first thing you can do before getting homeowners’ insurance is to contact an agent (real estate, insurance, or builders association) to know your local construction cost. After that, you can start building a home inventory to know how much coverage you need. Other premiums can be included at your discretion.
If you think you need more, you can talk with your insurance provider to help you look for the best coverage policy that’s perfect for your home. They would be able to answer your questions on your homeowners’ insurance, especially if you’re planning to sell your house.