A crucial aspect of protecting your house and your belongings is having home insurance. What happens, though, if you sell your house? Is it necessary to cancel your policy? At Gateway Property & Casualty, we’re proudly serving residents of Dover, NH and Augusta, ME with all potential home insurance needs.
Will Your Home Insurance Policy Transfer To Your New Home?
You may be wondering if your home insurance policy will follow you if you sell your current home and purchase a new one. The answer to this question will differ depending on your situation and the type of policy you have. It’s extremely unlikely that your standard homeowner’s insurance will be transferable to your new home.
When Should You Cancel Your Home Insurance Policy?
You must cancel your home insurance policy if you sell your home and no longer live there. You should cancel your policy as soon as your home is sold. If you have a mortgage on your home, your lender will require you to keep coverage until the loan is completely paid off. You can cancel your policy once the loan is paid off.
Can I Get a Refund After Canceling?
If you cancel your home insurance policy before the end of the policy term, you may be eligible for a refund. The amount of your refund will be determined by the amount of premium you paid and the length of your policy term. If you paid your premium in full, you will most likely receive a pro-rated refund. If you cancel your policy in the middle of the term, you may not receive a refund. Having said that, most reputable companies, such as Gateway Property & Casualty, are always willing to work with clients to reach an agreement.
Make Sure To Get Insurance For Your New Home
When selling your home, you must cancel your home insurance policy. You should cancel your policy as soon as your home is sold. When you purchase a new home, make sure to get the right coverage for your needs. For all your home insurance questions in the Dover, NH and Augusta, ME area, contact Gateway Property & Casualty and let one of our highly trained agents answer your questions personally.