Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Maby I made too much of a fuss about all of this.(??).
Yes and there is no reason to give your insurer advance notice of a sale. What it didn't close on the scheduled date? As others have commented, the insurer will likely never terminate the policy until they receive notice of actual sale. I have sold many properties over the years and have never given my insurer advance notice of pending sale or relied on anyone but myself to give notice of sale. I notified them the day after 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.
This^^^^^
Just like realtors don't cancel their client's home owners ins when the house they listed sell, neither do lawyers take care of that. That's YOUR responsibility.
They want proof of the date, because they will backdate the closing date/refund.
It wasn't the lawyer's responsibility to cancel the insurance policy. You have some very odd ideas about what lawyers do.
Yeah, maybe they think the lawyer should also cancel utilities, and cancel the yard maintenance people also. And don't forget to put in forwarding address with post office!!!! Lol.
They are allowed to cancel coverage under law, but they need verification from you that you no longer own the property. It's a GOOD thing that they'll let you cancel retroactively.
Canceling ins. normally requires that it be done in writing. Even if it's just an email. What if they cancel it,then you later claim you didn't cancel it? What would you think if they just called you to tell you they are canceling your HO insurance,without a written notice?
Actually I remember when I first informed the one agent in person in early july I did fill out a questionaire type of paper indicating that the house is being sold on aug 1 and that it still remains vacant until then,and that i'll be checking the home or mail everyday or so. But he never gave me a copy of that and no copy of my request.
Quote:
Originally Posted by Okey Dokie
When I sold my previous home, the insurance company knew I was going to cancel since they were writing a policy on my new home. They told me to call them when I had the check in my hand from the closing, as that was absolute proof the sale was done and recorded.
OP, with the large number of real estate transactions that DO NOT close on the originally agreed to date, It’s a good idea to be sure the deal is done before cancelling.
I understand that what if the closing doesn't go through on aug 1 that would mean I would still be the owner and will still need coverage therefore the insurance should not be cancelled that or next day until they get confirmation. I wish the 2 agents would of told me that. BUT isn't there a better way for insurance companies to handle this? Thats why I thought my lawyer would confirm to my insurance company that yes the closing date is in fact aug 1 and the closing went completely through but it seems lawyers don't do this anymore.
I imagine if they were to cancel insurance on aug 1 it would be completely cancelled at 11:59 pm aug 1, or do they actually cancel it the next day by 9am or up to 12 pm aug 2??? That way if I did not receive the certified cheque, I would have time to contact my insurance company before 12 pm aug 2 and say "nope the closing did not go through, I did not receive the money therefore I still own the house and still need insurance, thank you, and will get back to you once I get the money for the home".
If it were me, I wouldn't cancel the insurance until after the closing occurred. Your agent may be able to retroactively date the cancellation. Have you called your insurance agent and asked? Even if they can't, I'd rather pay for an extra day or two of insurance than risk having an uninsured home.
It's best of you don't assume anything and do your own research. Talk to the actual people involved so that way there is less room for error.
If it were me, I wouldn't cancel the insurance until after the closing occurred. Your agent may be able to retroactively date the cancellation. Have you called your insurance agent and asked? Even if they can't, I'd rather pay for an extra day or two of insurance than risk having an uninsured home.
.
Yes, that's when you cancel.
Of course they cancel retroactively because you can't insure something you don't own.
We settled on the sale of a home yesterday and I called my insurance company when I got home. They made the effective date of cancellation today. For what it's worth, I wasn't asked to provide proof the house was sold.
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.
Why does anyone have to be "at fault"? There's no harm done. Just send the documents in as soon as you have them. What's the big deal? Just provide the documents and they will backdate any coverage you've paid for to the date of closing and refund anything that you are due.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
