When you’re buying or selling a home, there are so many details to look after that it’s easy to miss something. One thing you don’t want to forget is insurance.
Protect your home, its contents, and your property against damage or liability. Insurance prices will vary, depending on your home and neighborhood, but plan for costs that typically start at a minimum of $500 per year. Keep in mind that a lower-cost policy may not offer the comprehensive coverage you may want. You can keep costs down by choosing a higher deductible. Also consider bundling up your car and home insurance with the same provider for deep discounts. Check to see if you get discounts through your employer or professional associations.
Once your property has sold, you’ll need to contact your insurance company to let them know the date that ownership of your property will be transferred (the “closing date”). They’ll arrange to cancel your insurance once you’re no longer the owner of that property.
If you’ll be taking possession of your new home and leaving your current property vacant for a period of time, you’ll need to make sure both properties are insured. This may also apply to a condominium even if the unit is completely empty. Contact your insurance company to ask about continuing liability coverage while discontinuing the insurance on contents.
When you purchase a new home, don’t leave the insurance to the last minute. Contact your insurance company right away. Make sure they are aware of all the features of the new home that may reduce your premiums, such as alarms, and wired-in smoke detectors.
Almost always insurance will be a condition of your lender extending you a mortgage. If there is any doubt about the insurability of the home you are buying (for example old electrical wiring), it is always a good idea to put obtaining insurance as a condition in the offer.
Don’t be discouraged by the details that needs to be looked after when buying a home. I am here to guide you through the process and make sure nothing falls through the cracks.