Is Homeowners Insurance Transferable?

1. 

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   Ken Boncela

   Ageny Owner, Farmers Insurance, Ken Boncela Insurance & Financial Services, Oswego, lllinois

   Generally not.  Home insurance is individually underwritten, meaning that the cost of coverage is not only dependent on the property being insured, but also dependent on the individual insured.  Age, occupation, credit, smoker or non-smoker, animals owned, prior claims can all factor into the cost. So typically you will need to obtain a new homeowners insurance policy when buying a home rather than taking over the seller's policy.

   Answered on May 27, 2013

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2. 

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   Terry A. McCarthy, CLU, ChFC

   President, Insurance Associates Agency Inc., West Chester, OH

   The answer as to the "right to transfer" coverage is specifically addressed in the policy conditions and it generally limits transfer. In the conditions section of your policy the insurance carrier rejects a transfer of the policy without their consent for all the reasons and others not mentioned in Ken Boncela's answer to this question. All carriers administer this provision differently but generally speaking a transfer from wife to husband, or from husband to wife is typically granted without the need to rewrite the policy. If your name appears on the policy with others the carrier may require a statement signed by the other party to disclaim the interest in the policy of the others named in the declaration page, but a new policy isn't generally required in this instance either. This type situation is one that may come up when a house is owned jointly by family members but not insured as a business or partnership name. As a general rule of thumb, transferred policies carry with the coverage, the accumulated experience of the previous owner(s) so for you, it might be better to shed the past and start anew on a policy issued in your name alone. In almost every other instance, transfer is rejected and a new policy is required.

   Answered on October 15, 2015

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