When Should Homeowners Insurance Start?
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3 responses to “When Should Homeowners Insurance Start?”
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As soon as you have an insurable interest, which for a newly financed purchase is the day you close your loan. If you are changing coverage from one insurance company to another, make sure your new agent binds coverage at 12:01 AM on the day your previous policy is canceled to ensure there is no lapse.
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Alex is right – the day you take ownership of the property. Sometimes the underwriting process can take a few days so you should allow one week to get things in order. If the insurance company is going to inspect the property as part of the policy conditions, this can even take up to a month to get the results back. Also, in PA most policies will start at 12:01 AM so if you are changing insurance companies make sure you keep this in mind.
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Homeowners insurance should start the day that you take ownership of your house. For most people its the closing day on the sale of the home. Homeowners policies renew annually after that. Don’t wait until the last minute to get your homeowners insurance setup because it could delay the closing date on the house.
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