What Insurance Is Still Needed When Selling Your Home?

Tuesday, November 28, 2017

When you list your home for sale, there are many moving parts involved with the process. One thing that can be easily overlooked during this is insurance. There are a few different types of insurance that should be considered and they are highlighted below.

Sellers and current homeowners looking to sell should be aware of the need of insurance for their property. Understand more about homeowner’s insurance, liability coverage and vacant home insurance today.

Insurance for Your Occupied Home

Homeowner’s insurance is a type of property insurance and helps cover potential damages and losses to both an owner’s assets and their house. Liability coverage is provided within homeowner’s insurance and protects against accidents in or around the home. Homeowner’s insurance covers four “incidents” on a property. A homeowner or seller is covered for exterior damage, interior damage, damage or loss of personal effects and injuries sustained on the property. If a claim is made to the insurance company, a homeowner will need to pay a deductible. There is a liability limit to insurance policies. Homeowners who live in areas prone to tornadoes and hurricanes may want to consider continuing with a basic homeowner’s insurance policy.

Homeowners place themselves at risk when a person steps onto their property. They are assuming responsibility for that individual’s well-being and litigious individuals may take advantage and attempt to sue for a minor injury. In addition to this issue, areas prone to strong winds, hail or extreme weather conditions may make it important for homeowner’s to maintain certain types of insurance to make it more affordable to make any necessary repairs. Roof and siding damage may reduce the price of a home and leave a structure vulnerable to additional damage if not attended to and having an insurance policy in place can usually decrease or eliminate costs associated with making repairs. Sellers want to address any obvious hazards and take steps to mitigating risks, such as taking dogs out of a home during a showing and having children stay away from the pool.

Selling a Vacated Home

Homeowners may need a different type of home insurance coverage for properties that are either unoccupied or vacant. A homeowner that is not currently residing on a property may not be able to benefit from typical homeowner’s insurance. A homeowner may need to sell the property and live at another location due to work or other obligations. It is then useful to get vacant home insurance while a home is going through the process of being sold. This protects owners against fire, liability and acts of vandalism. Hopefully, such issues do not occur to a home that is for sale and currently unoccupied. It may be more difficult to find an insurance company who will insure a vacant home. Vacant and unoccupied homes are at greater risk of damage and vandalism than occupied homes. Homeowners should realize that there are more restrictions when it comes to this type of coverage and that it will cover fire and wind as standard perils but not issues such as water damage from frozen pipes. This type of policy is generally more expensive than standard insurance options.

Learn More About Home Insurance Coverage

It can be stressful enough to maintain a home and make scheduling changes to show a home while it remains on the market. Many homeowners would rather not have to think about issues that could occur during the selling process which would require claims to an insurance company. However, homeowner’s insurance, liability coverage and vacant home insurance can protect homeowners and their assets if a problem should occur when a home is up for sale.


Guest Blogger Kris Lindahl is a Minnesota native & Owner & Founder of The Kris Lindahl Team with RE/MAX Results.


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