You might be thinking about whether you need homeowners insurance when selling a home. The answer is yes, you need homeowners insurance for the home you are going to sell which will cover you until you sell it. However, the type of homeowners insurance you need will vary depending on your situation.
What Is Covered by Homeowners Insurance While Selling a Home?
If you are staying in your home while trying to sell it, your existing homeowner’s insurance will cover your home and its property against named perils. However, it is good to review your policy to understand what is covered and what is not before you sell your home.
What Kind of Homeowners Insurance Is Necessary While Selling a Home?
It depends on whether you are still living in the home or elsewhere. If you are living in the home you are going to sell, it is enough to have a basic homeowners insurance policy that includes:
- Dwelling and Contents Coverage – Pays to repair or replace your home or belongings damaged by covered perils, such as fire, hail, storm, theft, vandalism, etc.
- Liability Coverage – Covers third-party bodily injury and property damage caused on your property or its premises, by your negligence, or by your pet.
If you vacate your home to list it for sale, your existing home insurance will not cover you. Instead, you may be required to buy a vacant or unoccupied home insurance policy, which might cost more than a standard homeowners policy, because vacant homes have an increased risk of theft and vandalism.
Why Do You Need to Buy Vacant or Unoccupied Insurance?
A vacant home insurance policy covers certain situations and perils that a standard homeowners insurance policy does not cover for vacant or unoccupied homes. You can either buy it as a separate policy or add it to your existing homeowners’ coverage.
A vacant or unoccupied home insurance policy is worth considering if:
- You are going on vacation for a month or two
- It is your vacation home (not a primary residence) that remains unoccupied for a long period
- You have bought the property, but will not move in for at least 30 days
- You are staying out (at a temporary residence) due to renovations/repairs
Are There Any Restrictions to Insure a Vacant Home?
Yes, not all vacant homes can be insured. To be eligible for a vacant home insurance policy, your home should be in a habitable condition. For example, it should have furniture or appliances. A vacant home that is without furniture or is in bad shape is usually considered poorly maintained or abandoned, so the coverage could be denied.
Protect Your Home with Premier Risk, LLC
Whether you need to protect your occupied home or unoccupied home, we are ready to help. Contact us today at Premier Risk, LLC, to get started on your personalized homeowners’ insurance in Long Island, NY. We are committed to creating a perfect policy that addresses your unique needs and risks.