When Should I Cancel My Homeowner’s Insurance Policy?

When Should I Cancel My Homeowner’s Insurance Policy?

A question my sellers most often ask as we get closer to closing is “When should I cancel my homeowner’s insurance policy?”

I always emphasize how important it is not to cancel their homeowner’s insurance policy until the proceeds are in their bank account from closing.

In Pennsylvania, the Seller owns the property on the day of settlement.

We see issues arise in this mortgage environment that can cause delays in closing on time or at all thus causing problems for sellers.  The transaction is not complete until the proceeds hit your account!

Recently a title company told me of a transaction where the buyer and seller signed the closing documents, the wire was issued from the lender and then rescinded because they did a last minute credit pull. The buyer went shopping after closing and charged new appliances!! It took 30 days to resolve (30 more days the sellers owned the home and were responsible for insurance coverage) this issue.

I am aware of a home that closed in 2009 in the morning after a very bad hail storm occurred.  The owner owned the home at the time of the storm therefore their insurance covered the damages.  They knew early in the process not to cancel their homeowner’s insurance until their proceeds were in their bank account.  They were so glad they did not cancel early because they were liable for the hail damage (which was extensive).

It’s always better to be safe than sorry!  Knowing procedures and consequences surrounding closing any real estate transaction is why a professional Realtor® is always recommended.  If you are looking for a competent Realtor® with multiple references to guide you through the process from beginning to end and everything in between, please call me to schedule an appointment to see if we are a good fit.

 

Harrisburg PA Real Estate Expert

Ken Huebsch is your premier real estate agent in the Greater Harrisburg area.  I am a specialist in Harrisburg real estate  as well as the communities of Palmyra, Hershey, and Hummelstown.  My wife Leslye and I have a combined 40 plus years experience serving our clients -We KNOW Harrisburg. When you plan to buy or sell Harrisburg area real estate, allow us to work for you.  We are dedicated professionals and are here for your success.  For more information on how we can best serve your real estate needs, please complete our online contact form or give us a call.  Also, check out what our fabulous clients have to say about us on our testimonials page!

Cell: 717 514-1793
email: mailto:Ken@KensHomesales.com

Presented by KensHomesales.com

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