• As a property owner, you may understand from experience that there are numerous costs and expenses associated with owning a home. One such expense is the home insurance policy you obtain to protect against damages to your property. With a home insurance policy, you benefit from having one of the most adaptable forms of protection available. In the event of any damages, whether severe or minor, your home insurance policy can assist you. It can also safeguard you from any lawsuits or liabilities related to your home.

• Nonetheless, many homeowners contemplate canceling their policies, particularly if they are thinking about selling their homes soon or are already in the midst of selling their homes. But, is home insurance essential while selling your property? In this article, we will address this inquiry and specify the type of home insurance you require while selling your property.

Is Home Insurance Necessary While Selling a House?

• Numerous individuals often believe that a home insurance policy is required by the government, much like the motor insurance policy that every vehicle owner must have. However, this is not true. Mortgage lenders have made it a requirement for homeowners to possess a home insurance policy. Therefore, without home insurance, it can be quite difficult to find a suitable buyer and receive assistance from these mortgage lenders in the selling procedure. In several instances, homeowners tend to cancel their home insurance policy once they have fully paid off the cost of the home. But, this may not be the most advisable decision.

• Home insurance policies provide a broad array of advantages that definitely outweigh the cost of the policy. Without a home insurance plan, you would be held responsible if someone gets injured on your property or if any damages or accidents occur at your property. Maintaining a home insurance policy while selling your home can also enhance your chances of successfully selling your property.

What Type of Home Insurance Do You Need When Selling Your Home?

• When selling your home, it can be nearly impossible to completely clear out the space without leaving behind some of your personal items. Often, you may leave some personal belongings in the home as part of the sale. These could include your furniture, appliances, and other items that may not be essential or may be difficult to transport to your new home. With these items remaining in your home, having a home insurance policy can help cover any damages associated with these belongings and also offer you a safety net.
• So, prior to initiating the process of selling your home, it may be prudent to determine what will be incorporated and omitted from the coverage provided by your home insurance policy. Additionally, relocating to a new residence will come with new requirements. Acquiring new home insurance that meets a different set of demands can be beneficial. Just as a distinct insurance policy is necessary when you acquire a new home, a different home insurance plan will be required when you sell your home. When contemplating home insurance while selling your home, it can be advantageous to consider the following two factors.

1. Liability Coverage
   
   If you have a specific household member who is accountable for an accident or injury at your residence, the liability coverage of your home insurance will account for these damages or injuries. For example, if someone is bitten by your dog on your property, the liability coverage of your home insurance policy will take care of the injured person’s medical costs.
   
2. Dwelling and Contents Coverage
   
   This element of the home insurance policy encompasses the damages incurred to your home and all of your possessions within the home.

Should I Cancel My Existing Home Insurance?

While selling your home, securing new home insurance that considers the items you intend to leave behind in the house and other factors related to damages can be the optimal choice. If your current home insurance policy addresses the necessary elements, it may be advantageous to maintain it. However, if you wish to cater to a new set of needs and alter the coverage provided, it is advisable to pursue a different home insurance plan.

Conclusion

• Having a home insurance policy while selling your home can be advantageous from various angles, including enhancing the likelihood of selling your home. Based on your requirements, ensure that you select the most fitting home insurance policy. HDFC ERGO is the leading option in the market for the best home insurance in India and can provide a host of other advantages.

Disclaimer:

• The above information is solely for illustrative purposes. For additional details, please consult the policy wording and prospectus before finalizing the sales.