Here’s Why You Need Home Insurance While Selling Your Home

Posted on: Oct 12, 2021 | | Written by:

Here’s Why You Need Home Insurance While Selling Your Home

Published on November 2, 2021. EST READ TIME: 3 minutes

Why do You Need Home Insurance while Selling Home - Home insurance

As a homeowner, you might know from experience that there are plenty of costs and expenses related to owning a property. One of these expenses is the home insurance policy that you avail to cover for damages for your home. When you have a home insurance policy, you have the advantage of experiencing one of the most versatile protections available. In case of any damages, be it catastrophic or not, your home insurance policy can be of help. It can also protect you from any kind of litigation or liabilities concerning your home.

However, many homeowners consider dropping their policies especially if they are considering selling their homes soon or are already in the process of selling their homes. But, is home insurance necessary while selling your home? In this article, we will answer this question and identify the type of home insurance you need while selling your home.

Is Home Insurance Required While Selling a House?

Many people tend to think that a home insurance policy is mandated by the government similar to that of a motor insurance policy for every vehicle owner. However, that is not the case. Mortgage lenders have made it mandatory for homeowners to have a home insurance policy. So, without home insurance, it would be quite challenging to find a good buyer and get the help of these mortgage lenders in the selling process. In many cases, homeowners tend to drop their home insurance policy once the entire cost of the home is paid off. But, that may not be the best idea.

Home insurance policies offer a wide range of benefits that most certainly overweigh the price that you have to pay for the policy. Without a home insurance plan, you would be held liable if someone is injured at the property or any damages or accidents are caused on your property. Having a home insurance policy while you’re selling your home can also increase the chances of your home being sold.

What Home Insurance Do You Need When Selling Your Home?

When you sell your home, it can be almost impossible to clear the space out completely without any personal belongings of yours. Many times, you may leave some of your personal belongings in the home as part of the sales. These could be your furniture, appliances, and others that may either not be necessary or maybe challenging to transport to your new home. While these belongings are left at your home, having a home insurance policy can help cover all the damages incurred by these belongings and also provide you with a safety net.

So, before you start the process to sell your home, it can be wise to find out what will be included and excluded from the coverage provided by your home insurance policy. Moreover, moving to a new home would come with new demands. Purchasing new home insurance with a different set of needs can come in handy. Just the way you need a different insurance policy when you buy a new home, you will need a different home insurance plan when you sell your home. While considering home insurance while selling your home, it can help to take the following two parameters into account.

1. Liability Coverage

In case you have any particular member of the household responsible for an accident or injury in your home, the liability coverage of your home insurance will cover for these damages or injuries. For instance, in case an individual gets bit by your dog in your home, the liability coverage of your home insurance policy will cover the injured person’s medical expenses.

2. Dwelling and Contents Coverage

This aspect of the home insurance policy covers the damages that are incurred to your house and all of your belongings in the house.

Should I Cancel My Existing Home Insurance?

While selling your home, new home insurance considering the belongings you plan to leave behind in the house and other aspects concerning damages can be the best choice. If your existing home insurance policy covers the necessary aspects, it can be beneficial to retain the same. However, if you would like to address a different set of needs and change the coverage provided, it is best to opt for a different home insurance plan.

Conclusion

Having a home insurance policy while selling your home can be beneficial to you from different aspects including the increased likelihood of selling your home. Based on your needs, make sure that you choose the most appropriate home insurance policy. HDFC ERGO is the best in the marketplace for the best home insurance India and can offer plenty of other benefits.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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