When Should I Tell My Insurance Agent I Sold My Home?
June 23, 2023 by Brad Davis, CIC
Selling your home is a big deal, and there are lots of things to keep track of. It can be easy to forget about cancelling your home insurance when there are so many things you are already doing to sell it. But it is important to let your insurance agent know when you sell your home, so they can make sure your coverage is terminated properly.
When should you tell your insurance agent you sold a home?
There is no one-size-fits-all answer to this question, as the timing will vary depending on your individual circumstances. However, it's generally a good idea to let your agent know as soon as you have a signed purchase agreement. This will give them time to process the cancellation of your policy and issue you a refund for any premiums that have already been paid.
If you're moving out of your home before the sale closes, you'll also need to let your agent know. This is because vacant homes are at a higher risk of damage, so your insurance company may require you to increase your coverage or take other steps to mitigate the risk.
*SIDE NOTE: You should contact your agent when anytime a house changes hands or occupancy.
What happens if you don't tell your insurance agent you sold your home?
If you don't tell your insurance agent that you sold your home, they may continue to bill you for premiums. This could lead to a lapse in coverage, which could leave you financially responsible for any damage that occurs to your home after the sale.
*Some insurance carriers can back-date the cancellation (with supporting documentation), however some will only back-date up to a certain amount of days, or not at all.
How do I tell my insurance agent I sold my home?
The best way to tell your insurance agent you sold your home is to call them directly. You can also send them a letter or email, but be sure to keep a copy of the communication for your records.
When you contact your agent, be sure to provide them with the following information:
- Your name
- Your policy number
- The date you sold your home
- Contact info so your agent can contact you with any questions
Letting your insurance agent know when you sell your home is an important step in the process. By doing so, you can ensure that your coverage is terminated properly and that you're not left financially responsible for any damage that occurs to your home after the sale.
Here are some additional tips for telling your insurance agent you sold your home:
- Be proactive. Don't wait until the last minute to contact your agent. Too much communication with your agent is way better than not enough.
- Be clear and concise. Provide your agent with all of the information they need to process the cancellation of your policy.
- Keep a copy of your communication. This will help you if there are any questions down the road.
- You may be required to provide proof you sold the home – usually done by providing closing documents provided by the closing agent or attorney.
By following these tips, you can ensure that the process of telling your insurance agent you sold your home goes smoothly.
Care to see what we can do for your home insurance? Please visit ThinkDavisInsurance.com or call (843) 213-0000.
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