I'm Selling My Property - When Can I Cancel My Insurance?
It's tempting when you're close to finalizing your property sale, to cancel all expenses associated with it but be careful! The last thing you want to find out is that you weren't insured when you needed it.
Use these steps to stay protected:
Once your property - residential or commercial - is listed on the market, put a call through to your insurance agent to let them know you’re in the process of selling. Your agent can walk you through what you’ll need to do in preparation for your sale, as well as advise you if you’re planning on purchasing something else at the same time.
If you’re moving out of state, your agent may even help you locate a trusted agent in your new area to make sure your insurance needs are handled properly.
Don’t Cancel Too Early
Selling can be stressful, but don’t let your desire to get it done quickly lead to a gap in coverage. Always wait until the paperwork is signed to cancel your policy.
If you cancel your policy and something happens to your property before closing, you could be in for costly repairs or have the sale fall through altogether.
The cancellation can be backdated to the date the home is officially closed by providing your closing documents, so it only makes sense to wait until after the closing to cancel your policy.
THEN make sure to ask your agent for your refund of any coverage beyond closing! 💰