Fountain City is one of Knoxville's established North Knox neighborhoods, with older homes, mature trees and lots of move-up buyers. If you want to buy a house in Fountain City before your current one sells, you will own two properties for a while, and each needs the right insurance.
Two Homes, Two Policies
Your lender will require homeowners coverage on the new Fountain City home before closing, effective the day you close. Your current policy must stay active on the old house until the sale funds. Never cancel early to save a few dollars, because a loss during the overlap could be uncovered.
Insuring the Home You Are Leaving
- Vacancy limits. Many policies restrict vandalism, glass breakage and water damage after 30 to 60 days of vacancy. Ask about a vacant home endorsement.
- Keep utilities on. A frozen pipe in an unheated house is a common denied claim, and Knoxville cold snaps happen.
- Staging. A furnished, staged home is treated differently than an empty one. Tell your agent which applies.
- Showings and open houses. Confirm your liability limits are adequate for visitors.
Insuring the New Fountain City Home
Many Fountain City homes are older, with original wiring, plumbing, roofs and sometimes older heating systems. Insurers ask about the age and condition of these systems, and some price older homes differently. Set the dwelling limit using replacement cost, not purchase price, because mature lots and older construction details can raise rebuilding costs. Ask about water backup and service line coverage as well.
If the Old Home Becomes a Rental
If you decide to rent instead of sell, a landlord policy replaces the standard homeowners form. A policy written for an owner-occupied home may not respond to a claim once tenants move in.
Checklist
- Give your agent both addresses and your expected closing dates.
- Confirm start and end dates on each policy.
- Ask about vacancy rules and endorsements.
- Consider an umbrella policy while you own two homes.
- Photograph both homes and update your inventory.
Thinking about buying before selling in Fountain City? Kings of Real Estate can help with the strategy, and AnnieMac Home Mortgage at (865) 518-6408 can explain financing options.
For a quote on one or both homes, call All Seasons Insurance Group at (865) 263-1400 or visit asigtn.com.
