Many Greeneville homeowners find the home they want before their current one sells. Buying first can make sense, but for a few weeks or months you own two houses, and each needs the right insurance. Here is how to keep both protected.
You Need Two Policies, Not One
Your new home needs its own homeowners policy, bound before closing. Lenders require proof of coverage at the closing table. Your current home keeps its existing policy until the sale closes. Do not cancel it early, even if you have already moved out.
The Vacancy Problem
Most homeowners policies limit or exclude certain claims, such as vandalism, glass breakage and water damage, once a home has been vacant for 30 to 60 days. If you move into the new house and the old one sits empty while listed, tell your agent. Vacant-home or dwelling-fire coverage may be needed.
- Keep utilities on and the heat set to a safe temperature in winter to avoid frozen pipes.
- Have someone check the house weekly.
- Keep it maintained: lawn, mail and lighting.
- Consider leaving some furniture for staging, which also shows ongoing use.
Renting Out the Old House
If you rent your old home instead of selling immediately, a standard homeowners policy usually will not do. You will need a landlord (dwelling fire) policy with liability coverage.
Moving Your Belongings
Personal property coverage can follow you to the new address for a limited time, but confirm the details. Ask your agent about coverage while items are in transit or in storage.
Liability on Two Properties
Two yards, two sets of steps and two driveways mean double the exposure. A personal umbrella policy is an inexpensive way to add liability protection while you carry both homes.
Plan the Overlap Before You Buy
Talk to your lender about carrying both mortgages and get insurance quotes on the new home before you make an offer. Premiums can vary based on roof age, heating system and distance from fire protection.
Talk to a Local Agent
The team at All Seasons Insurance Group can review both properties and your timeline. Call (865) 263-1400 or visit asigtn.com.
Thinking of buying before you sell in Greeneville? Kings of Real Estate can help with the real estate side, and AnnieMac Home Mortgage can help with financing at (865) 518-6408.
