Seeing the prices of our homes hit these heights, puts the pressure on to get them on the market and see if we get a bite. In this blog we will cover some common insurance mistakes home sellers make.
Tip one, NEVER cancel your homeowner’s policy just because you plan on selling it soon. This has the potential to be the most crippling mistake you ever make. When you cancel your homeowner’s policy before escrow closes, you take on all the risks that you were previously insured for. The exposure to a loss is actually increased while you’re selling your home. Hypothetically, you are having an open house, someone trips over your garden hose and breaks their hip. Due to the cancellation of your homeowner’s policy, you have no insurance for a situation that ordinarily would be covered. It’s vital to keep your homeowner’s policy until escrow closes and the home is no longer in your name.
Secondly, ALWAYS consult your insurance agent. Let them know that you are selling and ask questions! For example, what does the insurance process look like when selling my current home and moving into my secondary residence? Inform your insurance agent if you are making upgrades or doing any home improvement before you sell (see our home improvement blog). Providing your agent with this information will help protect you, your home, and your property appropriately.
At Warren G. Bender, we have years of experience with our clients selling their homes. We proudly help our clients make strategic moves regarding insurance during their selling process. As you embrace the idea of selling your home, keep us in mind and give us a call. 916-380-5300