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View Full Version : Home insurance Policy - if the insured house is sold to buyer?


Vivek
08-10-2010, 06:48 PM
What will happens to the Home insurance policy if the insured house is sold to buyer? Will the insurance policy automatically transfered to the buyer? Or
Do we need to inform the insurer with new proposal form?
Naresh
08-10-2010, 08:26 PM
What will happens to the Home insurance policy if the insured house is sold to buyer? Will the insurance policy automatically transfered to the buyer? Or
Do we need to inform the insurer with new proposal form?
Insurance cover will be ceased on the day the transfer of property happens. Just inform your insurer. He will cancel your policy and send you the refund.
Nilesh
09-10-2010, 02:55 PM
He will cancel your policy and send you the refund.
Could you pls tell me how they will refund the premium?
Naresh
10-10-2010, 12:29 PM
Your premium will be refunded on the basis of Short Period basis.
What is Short Period Refund?
Short-Period cancellation means you will receive a pro-rated refund minus a penalty. The penalty represents an administrative fee for costs incurred by the company, and is typically 5-10 percent of the pro-rated amount.

For Prorata Calculation Read herev- http://policywala.com/showthread.php/1303-What-is-a-prorata-premium?