I am a Realtor, which means I know just enough about hazard insurance (more often known as Homeowner’s Insurance) to get myself in to trouble. It’s important to not only have a solid insurer, but also a quality insurance agent that can articulate the nut and bolts of your policy into plain English.
Below, some real life scenarios courtesy of the excellent weekly newsletter from the attorneys over at Neel and Robinson. If you don’t currently have an insurance agent that can answer these questions, let me know and I’ll recommend some good ones.
- 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?
- 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?
- 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?
- 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?
- 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?