Selling a house can be an exhaustive and tiresome process. You need to find the right realtor, keep your house open for viewing, and work on a lot of paperwork in order to fast house sale. It goes without saying that the process demands a lot of patience from the owner to ensure that the sale is successful.
On the other hand, there are some tips that you should never forget when selling a house. You need to consider the insurance policy covering your house. These insurance tips are discussed below:
House insurance should be kept in place as long as you own the property. Even if you cancel the insurance after the sale of the house or it goes unconditional, you still have ownership rights until settlement. Therefore, you should insure the property until the settlement.
- It is advisable that you keep the insurance until the settlement is complete
- Inform the insurer on any changes on the settlement date
- After settlement, check your home insurance for any available refunds
Your contents insurance is as important as your home insurance while selling your house. You should review it.
Contents insurance covers the property insured at the location where you have insured it at. However, some people declutter and temporarily relocate some of their contents to another family member’s home when selling a house. The terms of the insurance policy determine if the contents are insured at the new location.
If your family members are in charge of your relocated property, you might be covered under their insurance policy. However, it is advisable that you check with their insurance company.
There are a few risks involved when you open your home for viewing. Some prospective buyers may steal or accidentally break something. In such a case, breakage is covered by the contents policy while theft isn’t because you invited them into your house.
Remove valuable items from your home before you invite buyers for viewing. Keep those items in a secure and insured location.
Find out whether your insurance policy covers property in transit – when moving them to the new house.
Purchasing a New Policy
It is easy when purchasing new contents insurance. You are required to change the address on the policy and the insurance company will calculate any changes in premium.
However, when you move to a new house, it is not easy to transfer the house policy of the old house because the new house will be different in terms of size, building materials, and location. Therefore you need to calculate the sum insured for the house.
In areas prone to natural disasters, it is not easy for buyers to take a new insurance policy for the house. Therefore, if you are selling a house in such areas, check with the insurance company so that the new owner takes over the existing policy.
It is recommended that you review your contents insurance to ensure everything is covered properly. You should also ensure that the house and its contents are well insured until settlement. If you follow the above guidelines, you will sell or buy a house without any legal or financial difficulties.