Changing owners requires a change in home insurance policy - 23 Jun 2010 21:32
If you’ve recently sold your home, the new owner will need to take out an insurance policy. Whether this happens on occupation or transfer depends on your agreement.
After selling your house you may have agreed to let the new owner take occupancy before the transfer is finalised. This has implications for your home insurance, which you’ll want to keep until transfer is through, as you will be liable for any damage caused by wind, fire and water for example. Until the transfer is complete, the home is yours and your responsibility, unless stipulated otherwise.
The sales agreement will contain a clause which stipulates when the risk of the property becomes that of the new owner. Usually this is upon transfer not occupation. Fortunately such an arrangement does not require a special insurance policy.
Informing your insurer that new tenants have taken occupation shouldn’t change your cover, but it will limit your liability should your insurer find out when claiming that the policyholder is no longer the resident.
Should your sales agreement stipulate that the new owner is liable for the risk of the house, then he or she will have to make special arrangement to insure the property from the date of occupation. If the new owner does not, he or she will still be liable for any damages that result after occupation.
If you’ve recently sold your home, the new owner will need to take out an insurance policy. Whether this happens on occupation or transfer depends on your agreement.
After selling your house you may have agreed to let the new owner take occupancy before the transfer is finalised. This has implications for your home insurance, which you’ll want to keep until transfer is through, as you will be liable for any damage caused by wind, fire and water for example. Until the transfer is complete, the home is yours and your responsibility, unless stipulated otherwise.
The sales agreement will contain a clause which stipulates when the risk of the property becomes that of the new owner. Usually this is upon transfer not occupation. Fortunately such an arrangement does not require a special insurance policy.
Informing your insurer that new tenants have taken occupation shouldn’t change your cover, but it will limit your liability should your insurer find out when claiming that the policyholder is no longer the resident.
Should your sales agreement stipulate that the new owner is liable for the risk of the house, then he or she will have to make special arrangement to insure the property from the date of occupation. If the new owner does not, he or she will still be liable for any damages that result after occupation.