Selling your home can be a stressful and exciting time – we’re often so busy putting all of the wheels in motion that we forget about things like insurance until something unexpected happens. So if you’re planning on putting your home up for sale, or if you’re already in the process of selling it, make sure you’re aware of what your insurance policy covers and what it doesn’t so that you don’t end up with any costly surprises!
1. Don’t cancel too early
You might think that once your house is sold, you can cancel your insurance, but don’t forget that you are the legal owner up until the settlement date. Because the settlement date can often be a while after the sale, it’s important to keep your insurance in place until the buyer is the legal owner. The last thing you want is for something like a natural disaster to take place between the sale and settlement, because if you’re not covered you’ll still be liable as the current owner.
2. Inform your insurance provider
Make sure you let your house insurance provider know if you’re selling your home. You’ll need to advise them of the sale and give them the settlement date so they know when your cover will need to stop. Your provider will also be able to tell you what your existing policy covers you for so that you can take extra precautions if need be. You will need insurance for your new home too, so it’s good to keep your provider across all changes to make sure you’re covered seamlessly all the way through the process.
3. Avoid open home risks
As you can imagine, there are quite a number of risks that come with hosting an open home, so it’s important you prevent these where possible. You’ll need to find out whether your policy covers any accidental damage that might occur from having a number of people through your home. There’s also the risk of theft, so make sure you lock up any valuables and always have a real estate agent present who can control who is coming and going.
4. Check your contents
Depending on your policy, contents insurance usually only covers your items at a location you’ve specified, like within your home. If you’re going to be storing your belongings at a different location, make sure to let your insurance provider know – some policies do cover this, but it’s important to know if yours doesn’t. Your items may not be covered while you’re moving them from your previous home to your new home, so it’s also a good idea to check whether your policy covers ‘contents in transit’.
If you’re selling your home and looking to buy another, have a chat with our expert mortgage team today!