It is very simple to set up homeowner’s insurance for buyers who are closing on a new house and moving in within a day or two, but there are many other situations in which the buyers and/or sellers should confirm that they are protected by insurance:

1.      Buyers have sold property in another state and moving belongings here:  Are their possessions covered in transport by either the old policy or the new one?

2.      Buyers are closing now but not moving in for a few months (e.g. when school is out):  Does their policy cover damages or vandalism to a vacant house?

3.      Buyers are closing now but doing extensive remodeling work for 3-6 months before moving in:  Does their policy cover injuries to contractors (or even nosy neighbors) in the house?  Is the house covered while it is still vacant?

4.      Sellers are closing but staying in the house for a few months:  Does their previous homeowner’s policy protect them or the new owners?  Should the buyers have a landlord policy until they actually move in?

5.      Sellers allow the buyers to move in prior to closing:  Should the sellers convert their policy to a landlord policy?  Does it help for the buyers to start coverage on their policy?

These questions can only be answered by the insurance agent who is insuring the property.  Make sure you have all questions and answers in writing in case it is necessary to file a claim.  Once a claim is made for damage, theft, or injury, it is too late to correct the policy.

For help with all your real estate needs, contact Ariel at www.baverman.com