If I sell my house, do I have to cancel insurance coverage?

The process of selling a home may be complicated and time-consuming, which leaves many sellers wondering when they can cancel their homeowners insurance. You should wait until the closing has officially finalized before canceling your homeowners insurance policy.

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When to cancel homeowners insurance when selling a house

The home you sell is considered yours until the closing process is finalized. At closing, once the buyer officially owns the home, you can cancel your coverage. Until that time, your homeowners insurance policy should remain in place to provide protection should anything happen to the home.

Why should you keep homeowners insurance while selling your home?

If you cancel homeowners insurance too early, any damages incurred will not be covered, and you will need to pay the repairs out of pocket. Moreover, a buyer could back out of the purchase at any time. Learn more about how homeowners insurance is paid.

Can I transfer my existing homeowners insurance policy to a new property?

Homeowners insurance can't be transferred from one property to another. You’ll need to start a new policy with your insurance provider before you close on a property, especially because you want it to take effect immediately upon buying the home.

If you temporarily own two homes (e.g., you buy a new home before you finalize the closing on your old home), you’ll maintain two insurance policies until the old home has been sold. Though the policies may overlap, the important thing is to have both homes properly insured while you’re the owner of both.

Learn about how to change your homeowners insurance policy and buying a second home.

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