When you sell your home, it's tempting to think about insurance only for the house you're buying next. But you're responsible for the home you're selling until the sale closes. A fire, burst pipe or injury during a showing can still happen, and gaps in coverage are common when sellers move out early, rent the home back or cancel too soon. This checklist covers insurance from listing to closing.
Before you list
Keep your homeowners policy in force
Your policy should stay active until the deed transfers to the buyer, and your lender requires coverage until the loan is paid off at closing. Don't cancel when you sign a purchase agreement.
Tell your broker you're selling
Your broker can flag issues such as vacancy rules, staging or renting the home back. If you're making repairs or upgrades before listing, see our home renovation insurance checklist.
Fix issues that could affect the buyer's insurance
Buyers increasingly shop for insurance before removing contingencies. Issues like an old roof, outdated electrical panels or past water damage can make the home harder to insure and may complicate the sale. Consider addressing them before listing.
Gather your claims history
Buyers may ask for the property's claims history. As the owner, you can request a CLUE report on your home from LexisNexis. See our CLUE report guide. California sellers also have disclosure obligations; ask your real estate agent and attorney what you need to disclose.
During showings and open houses
Protect valuables
Strangers walking through your home create theft risk. Before showings:
- Lock away jewelry, cash, prescription medication, small electronics, firearms and personal documents.
- Remember that homeowners policies limit theft coverage for jewelry, cash and some other items unless they're scheduled.
- Update your home inventory with photos before listing.
Reduce injury risk
You can be liable if a visitor is hurt in your home. Fix trip hazards, secure loose railings, keep walkways lit and clear, and secure pools and pets during showings. Review your liability limits, and consider an umbrella policy.
Staging
If a stager brings furniture and decor, ask who insures it. Your policy may not cover property you don't own. Many stagers carry their own coverage.
If you move out before closing
Watch vacancy and unoccupancy rules
Many homeowners policies limit or exclude certain coverage, such as vandalism, glass breakage or water damage, once a home has been vacant for a set period, often 30 or 60 days. Some also require that you keep heat on and water shut off in cold climates. Options include:
- A vacancy endorsement on your current policy
- A vacant home or dwelling fire policy. See our vacant home insurance guide.
Keep the home maintained
- Keep utilities on for showings and inspections.
- Shut off the water main if allowed, or check regularly for leaks.
- Have someone check the property often and remove flyers and packages.
- Keep the yard maintained and consider timers for lights.
If you rent the home back or the buyer moves in early
Rent-back after closing
If you stay in the home after closing, the buyer now owns it and should insure the dwelling. You'll need renters insurance for your belongings and liability. Your purchase agreement or a separate rent-back agreement should spell out responsibilities and insurance.
Buyer moves in before closing
If the buyer moves in early, you still own the home. Talk to your broker before agreeing. Your policy may not cover the buyer's belongings or liability, and the arrangement may change your coverage. A written agreement and proof of the buyer's renters insurance help.
At closing
Coordinate the cancellation date
Cancel your homeowners policy effective on the day the deed records or ownership transfers, not before. Confirm the date with your escrow officer. Ask the buyer's agent to confirm the buyer's coverage starts that day, too.
Get your refund
If you paid your premium in advance, you're generally entitled to a refund of the unused portion when you cancel. If your premium was paid through an escrow (impound) account, your lender will refund any remaining escrow balance after the loan is paid off. The Consumer Financial Protection Bureau explains escrow accounts.
Move other policies
- Move coverage for personal property to your new home's policy, or to renters insurance if you're renting.
- Update your auto policy with your new garaging address.
- Update your umbrella policy with your new address.
- Change scheduled jewelry and valuables to your new policy.
Selling a rental property
If the home is a rental, you likely have a landlord or dwelling policy. Coordinate with tenants about showings, and keep the policy in force until closing. If tenants move out, check vacancy rules. See our landlord tenant screening and liability guide.
Selling after a loss
If you're selling a home with an open claim, talk with your broker, your insurer and your attorney about who will receive claim payments and how repairs will be handled. Disclose the claim and its status as required.
Selling your home insurance checklist
Before listing
- ☐ Keep your homeowners policy in force
- ☐ Tell your broker you're selling
- ☐ Address issues that could affect the buyer's insurance
- ☐ Gather your property's claims history
During the sale
- ☐ Lock away valuables and update your home inventory
- ☐ Reduce trip and fall hazards
- ☐ Ask the stager about their insurance
- ☐ Check vacancy rules if you move out
At closing
- ☐ Cancel effective the day ownership transfers
- ☐ Get your premium refund or escrow balance
- ☐ Move personal property, auto and umbrella coverage to your new address
Contact Alishahi Insurance or call (877) 711-4545 to coordinate coverage for your move.
Frequently asked questions
When should I cancel homeowners insurance when selling my house?
Cancel effective the day ownership transfers to the buyer, not before. Confirm the date with your escrow officer.
Will I get a refund on my homeowners insurance after selling?
You're generally entitled to a refund of unused prepaid premium. If you paid through escrow, your lender refunds the remaining balance after payoff.
Am I covered if I move out before the sale closes?
Possibly not fully. Many policies limit coverage after a home is vacant for a set period. Ask about a vacancy endorsement or vacant home policy.
Who insures the house during a rent-back?
After closing, the buyer owns and should insure the home. The seller needs renters insurance for belongings and liability.
Am I liable if someone is hurt during a showing?
You can be. Fix hazards, secure pools and pets, and review your liability limits.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.