Buying a home is a complex process with many movable parts, including insurance. For example, what happens with insurance when you buy a house? Can it be transferred to a new owner? In today’s post, we provide an answer.
Can Home Insurance Be Transferred to a New Owner?
No, when you sell a house you CANNOT transfer your home insurance to the new owner. If you sell a house, you need to cancel your insurance policy and the new owners must purchase their own.
There are two reasons for this. One, a home insurance policy must be in the name of the current owner of the property. And two, insurance carriers quote premiums on a case-by-case basis. Many of the factors that impact the price of home insurance (such as claims history and even the type of pet you own) are highly individual, so it’s highly unlikely that the new owner of your home will have the exact same risk profile.
A quick note: Make sure not to cancel your insurance until the transaction is finalized. If you cancel too early, you’ll be on the hook for any damage that happens to the property
I’m Buying a House, Can I Transfer My Home Insurance to My New House?
The road goes both ways: Just like you can’t transfer home insurance to a new owner, you can’t transfer your current home insurance to a new property.
The principle is similar to the one described above. Houses, individuals, and families have unique risk profiles and they’re not interchangeable.
The premium you pay for your current home reflects factors such as the age of your home, its specific location, and the distance from a fire station. So even if the same individuals will be living in the new property, you can’t just transfer your existing insurance to the new dwelling. What you need to do is to cancel your previous policy and purchase a new one.
If you have other questions, don’t hesitate to get in touch with our home insurance experts. We’ll be glad to offer the guidance you need.
RF1 Insurance Services: Dependable Home Insurance in Southern California
At RF1 Insurance, we work with some of the world’s most trusted insurance companies, including Safeco, Guard, Stillwater, National General Premier, Aegis, and the California FAIR Plan.