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I sold a home in Ontario, Canada that was vacant (no one lived in home) for over 3 months and my lawyer handled the sale of that home and the closing documents. (closing date was aug 1). My insurance company phoned me today informing me since that home was vacant that I have to provide proof that I sold that home and when the closing date was in order for that insurance policy to be cancelled on aug 1 (when I already visited that insurance company's office in person 1 month before the closing date informing them I sold that home), if I fail to provide proof that the house was sold and the closing date the insurance will automatically be cancelled on aug 20 but I will have to pay for the insurance coverage from aug 1 to aug 20 while the buyer of that home owned the home and lives there.
My questions are, wasn't my real estate lawyer suppose to do this for me, WHY didn't my lawyer provide this information to my insurance company that I sold the home and the closing date was aug 1. Was my lawyer required to do this? Certainly my insurance company cannot charge me insurance on a home I no longer own? If they do then I will file a complaint against them, especially because I informed them 1 month ago that I sold that home. I know there are sites that handle complaints when insurance companies treat customers unfairly and unjustly.
Im waiting for the closing documents of the sale of that home (i'll pick them up in person at lawyers office) that will clearly show proof that I sold the home and the closing date. But my question is why DO I as an insurance customer have to show proof to my insurance company that it was sold and on what closing date, and why didnt my real estate lawyer provide this information for my insurance company?? As far as I know lawyers are suppose to handle this. Why didnt he?
I sold a home that was vacant (no one lived in home) for over 3 months and my lawyer handled the sale of that home and the closing documents. (closing date was aug 1). My insurance company phoned me today informing me since that home was vacant that I have to provide proof that I sold that home and when the closing date was in order for that insurance policy to be cancelled on aug 1 (when I already visited that insurance company's office in person 1 month before the closing date informing them I sold that home), if I fail to provide proof that the house was sold and the closing date the insurance will automatically be cancelled on aug 20 but I will have to pay for the insurance coverage from aug 1 to aug 20 while the buyer of that home owned the home and lives there.
My questions are, wasn't my real estate lawyer suppose to do this for me, WHY didn't my lawyer provide this information to my insurance company that I sold the home and the closing date was aug 1. Was my lawyer required to do this? Certainly my insurance company cannot charge me insurance on a home I no longer own? If they do then I will file a complaint against them. I know there are sites that handle when insurance companies treat customers unfairly.
Ask your lawyer and/or just provide the documentation that your insurance company needs
It's not your lawyer's responsibility to cancel your insurance--it's yours. It sounds like you didn't cancel your insurance and the insurance company is allowing a cancellation as of Aug. 1 if you only provide proof that you sold the house.
When you visited the insurance company a month before closing, you hadn't already sold the house. You were only under contract. The sale didn't occur until the closing.
It's not your lawyer's responsibility to cancel your insurance--it's yours. It sounds like you didn't cancel your insurance and the insurance company is allowing a cancellation as of Aug. 1 if you only provide proof that you sold the house.
When you visited the insurance company a month before closing, you hadn't already sold the house. You were only under contract. The sale didn't occur until the closing.
Wow, I thought my lawyer was responsible to inform my insurance that I sold the home and of the closing date. Although I did inform my insurance company in person on july 5 or so that that home was sold but the closing date will be on aug 1. I wonder why they waited until aug 13 to finally tell me that I have to provide proof. Why didnt that insurance clerk inform me that on july 5 when I was there in person? I guess thats where they are at fault.
I sold a few houses in the past and I never had to show my insurance company proof that it was sold. They would just have the policy cancelled when I informed them what date to cancel. Is this a new thing with insurance companies or they do this only if the house sold was vacant? Boy are they ever ever picky with vacant homes when it comes to providing insurance. They made a BIG BIG thing about it from the beginning, and charging me over $200 for each 3 months I didnt sell it.
Wow, I thought my lawyer was responsible to inform my insurance that I sold the home and of the closing date. Although I did inform my insurance company in person on july 5 or so that that home was sold but the closing date will be on aug 1. I wonder why they waited until aug 13 to finally tell me that I have to provide proof. Why didnt that insurance clerk inform me that on july 5 when I was there in person? I guess thats where they are at fault.
I sold a few houses in the past and I never had to show my insurance company proof that it was sold. They would just have the policy cancelled when I informed them what date to cancel. Is this a new thing with insurance companies or they do this only if the house sold was vacant? Boy are they ever ever picky with vacant homes when it comes to providing insurance. They made a BIG BIG thing about it from the beginning, and charging me over $200 for each 3 months I didnt sell it.
Normally, you just tell the insurance company the date that you want the policy cancelled. Since it is now past Aug. 1, they are willing to cancel it retroactively to that date since they wouldn't have paid a claim after you no longer owned it. Just provide them with the proof and be happy.
Note: It seems that the insurance company didn't consider your telling them of the planned closing date as a notice to cancel. Lots of planned closings don't happen as scheduled.
Well, sheesh, why don't you just send them a copy of the sales agreement? Or do you feel it's necessary to create more drama than it deserves?
Well............I wanted to make sure my lawyer didn't shirk his responsibilities, your replies said no, thanks.
Quote:
Originally Posted by jackmichigan
Normally, you just tell the insurance company the date that you want the policy cancelled. Since it is now past Aug. 1, they are willing to cancel it retroactively to that date since they wouldn't have paid a claim after you no longer owned it. Just provide them with the proof and be happy.
Note: It seems that the insurance company didn't consider your telling them of the planned closing date as a notice to cancel. Lots of planned closings don't happen as scheduled.
I already did inform my insurance company around july 5, way before aug 1 and even provided the clerk's name in that office whom I talked to, that I sold the home and the closing date is aug 1 and for them to cancel my insurance on aug 1 (he never gave me any receipt of my request as they often don't care to when it always should be required for them to provide that for all customers who make a request or change to a policy).
Yes I can certainly show them the closing documents to prove I sold that home, its more like why do I have to. For what reason and for what purpose is there for an insurance company to ask me to "prove" the house was sold and to prove of the closing date as if i'm in court or something when I just want a policy cancelled, and when I already informed them in july? Is it because like you said, its way past aug 1 when it was suppose to be cancelled, maby that clerk in their office messed up my request I made in july.
I also remember talking to that clerk on the phone in late july confirming yes the house was sold and the closing date is on aug 1, I guess its like what you said, I had to confirm to them ON aug 1 that it was in fact sold and closed when my lawyer's secretary gave me the certified cheque---for certain it was sold and closed then by 5 pm. So that can only mean confirming in early or late july that the house was sold was not good enough. Ok I understand, thats cool I guess. thanks!!!
this is the same attorney that was out of the country when you signed around Aug 1?
it has NEVER been anyone's responsibility other than the policyholder to cancel insurance.
But not surprised the cut rate insurance company would require you to jump through the perhaps additional hoop of actually contacting them much closer to the ACTUAL closing date to confirm the sale/closing, than telling them a month before "hey, I'm under contract, cancel my insurance on Aug 1".
One can only imagine the topic "My insurance company cancelled my insurance because I forgot to tell them the house sale fell through/got delayed. Then my house burned down - why won't they cover it?"
The house wasn't closed on July 5. It didn't close until Aug 1.
An insurance company should NEVER cancel insurance based on a pending future close date.
You need to show them when it closed. NO BIGGIE. Not sure why you think this is a big deal.
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