It is imperative that you do not terminate your old policy until you no longer have official ownership of the property, not based on a future closing date. Closing dates are subject to change, and if the house closes after your previous policy has been terminated, you may be responsible for any damages or injuries that occur on the old property.
If you do not sell your previous home immediately, you can overlap the policies for your old and new homes throughout the transfer to your new home. When relocating, it is preferable to have policies that overlap than to incur additional risks or coverage gaps.
Regardless of whether you're moving across the street or country, you should also inform your current insurance at least one month before your relocation date. Consider notifying your insurer when you make an offer on a home. Once the sale of your old house has closed, you can terminate the old policy, and some insurers will permit a retroactive cancellation.
Refunds On Home Insurance Policies Upon Cancellation
If you made sure to pay your premium in advance and don't use the same provider for the coverage on the new home, you are eligible for a refund. The length of your coverage and how far in advance you have paid should be considered. If you pay in advance for your homeowner's insurance and then cancel it, you will typically receive a refund. If you want to purchase your new homeowner's insurance policy from the same company, the remaining amount you've paid for the year will likely be applied to the premium for the new home.
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