3 Home Insurance Tips When Selling Your House

Whether you plan to leave all your furniture behind, take some pieces with you, or move out all of your belongings, the extent of your move typically affects the coverage your Home Insurance company will require during this period.

Many insurance companies limit or exclude certain coverages once a home has been vacant for a specified period—typically 30 or 60 consecutive days. After this time, if there is a property claim, a standard homeowners policy may no longer apply, leaving you financially responsible for any damages that occur.

This is why the first step in your move-out process should be calling your local insurance agent. They can help clarify what your Home Insurance Policy says about an unoccupied or vacant property and recommend options, including securing a different type of policy, if necessary, to make sure your house is covered against the increased risk of vandalism, theft, fire, water damage, and more.

2. Does Home Insurance cover damage to my belongings during a move or while they are in storage?

A standard Home Insurance Policy typically offers protection for your belongings against covered losses, whether the incident happens in your home or off premises. However, location sometimes makes a difference in how much coverage your policy provides. For example, if the event occurs away from your house—like in a storage unit—the coverage amount is usually limited to 10% of your total Personal Property Protection.

In addition, homeowners insurance generally does not cover the following situations, regardless of whether they occur when items are being moved, are in transit, or are in storage:

• Accidental damage or breakage when belongings are being packed, stacked, loaded/unloaded, or transported
• Mold or mildew damage
• Issues that directly arise from nonuse, like warped furniture or rusted electronics

Professional movers and storage facilities often offer some coverage to help fill in these gaps. However, it is a good idea to reach out to your local insurance professional for guidance. If you want to minimize the chances you have to pay out of pocket to repair or replace damaged belongings, your agent may recommend securing standalone moving insurance or increasing your Personal Property Coverage limits.

3. When is the right time to cancel my Home Insurance when selling my house?

After the closing documents are signed and ownership has officially transferred, it is typically safe to cancel your homeowners policy. However, if you are purchasing another house or condo, or renting an apartment, you also need to make sure a new, separate policy is activated on the appropriate date to prevent any gaps in coverage for your property and belongings.

Your local agent can help make sure the insurance process during this last stage of selling your home is seamless, gathering the necessary information, such as your new address and closing dates, to properly cancel your current policy and/or start a new one.