Is homeowners’ insurance a must-have? Mortgage lenders typically require coverage, and it gives the homeowner a safety net for life’s curveballs. But if you don’t have it, can you sell a house without insurance?
Alan at Pyramid Properties can confirm that we buy houses in Memphis, TN, even without home insurance. However, the real estate buyer cautions local homesellers about some important things to know before putting out a “For Sale” sign in the yard. Learn more below.
Is Homeowners’ Insurance Required To Sell?
Typical homeowners’ insurance requirements don’t include having an active policy when selling your house. No law says you must be insured to list or close on your home sale.
That said, many mortgage companies require property insurance coverage. If you still owe on your loan, your lender might step in, buy a policy, and add it to your payments. In some cases, the lender’s requirements may even push your loan into default, which can turn into a major headache when you try to sell the place.
Do you own the property outright? There’s technically nothing stopping you from selling a house without insurance, but that doesn’t mean the transaction is risk-free.
What Are the Risks of an Uninsured Home Sale?
Things get tricky in terms of real estate transaction risks. When a home isn’t insured, what happens if there’s a fire, storm damage, or even a break-in while it’s on the market? Can you afford to be on the hook for any loss or liability?
The legal implications of no insurance also come into play when showing your home. For example, if a potential buyer visits the house and slips on a loose step, you could be held personally responsible for their injuries. A homeowners’ insurance policy might bring you peace of mind.
What Buyers Think About Selling a House Without Insurance
Most buyers readily assume a home has insurance coverage until closing. Finding out it doesn’t could raise a red flag if they start to worry about hidden damage or neglect. Lenders may also hesitate to approve your potential homebuyer’s financing if the uninsured property appears to be a risk.
Let’s say the buyer stays interested, despite the fact that you’re selling a house without insurance. Might they offer less or ask for more inspections? The deal could cost you more or delay the sale.
Should You Get Insurance Just To Sell Your Home?
Has your policy lapsed? Even if you never had one, purchasing a short-term policy could protect your property until it sells. Even minimal property insurance coverage can shield you from major headaches.
Alan of Pyramid Properties Can Buy Your Home With or Without Insurance
Can you sell a house without insurance if it’s in poor condition? Skipping insurance saves money upfront and costs you big if something goes wrong, but it’s still possible to have a smooth selling experience. Work with a buyer like Alan at Pyramid Properties, who understands uninsured home sale scenarios and makes cash offers on distressed properties, condemned houses, and inherited properties.
Call Pyramid Properties’ Memphis office at 901-504-5555 today to speak to Alan about your options!