Listing it for sale
A home on the market may be empty while showings happen. Ask the insurer how open houses, lockboxes and repairs before sale affect coverage. Keep the policy active until the closing, and cancel it only once the sale has closed and the buyer's insurance is in place.
Renting it out
A homeowners policy generally is not designed for a home rented to tenants. A landlord or dwelling fire policy usually fits better, covering the building, liability and possibly lost rent after a covered loss. Tenants need their own renters policy for their belongings.
An heir moving in
If an heir moves in and will own the house, they usually need a homeowners policy in their own name. Coordinate the start date with the end of the estate's coverage.
Renovations before sale
Repairs and updates are common before a sale. Construction can raise fire, theft and liability risks, so tell the insurer about the work and make sure contractors have their own coverage.
Questions to ask
- Does the policy allow the home to be listed and shown while empty?
- What happens to coverage during repairs?
- When should the policy be cancelled after closing?
- Will any unused premium be refunded to the estate?
Cancelling and refunds
After the closing, ask the insurer to cancel the estate's policy as of the closing date and to send any unused premium to the estate account. Keep the cancellation confirmation with the estate records. If a tenant moves in instead, ask the insurer to switch the policy type before the lease begins.
Frequently asked questions
Should the estate cancel the policy when the house is sold?
Wait until the sale closes, then cancel effective that date.