Homeowners insurance
A policy covering the home, personal belongings, and liability if someone gets hurt on the property. Required by every mortgage lender. Doesn't usually cover floods or earthquakes.
Your Room opens on going under contract and closing, with the offer and everything before it already ticked.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.
See how it worksWhere this comes up: closing
Part 1 of 4
Why a seller cares
Your policy is cancelled after closing, not before, and the unused premium comes back to you. The buyer needs their own policy in place before their lender funds, which is a step that can delay a closing on an older home.
Part 2 of 4
A simple example
You paid $1,400 for the year in March and close in September. After closing you cancel and the insurer refunds about $700.
| The moment | What happens with the insurance |
|---|---|
| Under contract | The buyer shops for a policy; an old roof can make that hard |
| Closing day | The buyer's policy is in force; yours still is too |
| The day after | You cancel, effective closing day, and get the unused premium back |
Two policies overlap for a day. Cancel yours after, never before.
Part 3 of 4
What people get wrong
That cancelling early saves money. A day without coverage before closing is a risk with your name on it, and the refund is the same either way.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines homeowners insurance in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.