Any homeowner would agree that there are a ton of costs associated with owning property. Of those costs, one of the most expensive is homeowners’ insurance. Your homeowners’ insurance policy is a flexible umbrella that covers everything from flooding to theft. On top of covering the damage, it can keep you from being held personally liable.
While it’s beneficial to keep your property insurance if you plan to sell your home on the market – it’s not necessary if you plan on selling it for cash. Selling your home for cash is an excellent way out of sticky situations like costly repairs, condemned homes, unwanted inherited homes, and house flipping projects that went south. None of these situations warrant keeping property insurance on your home.
Here’s how you can sell your house if you don’t have property insurance.
Avoid the Real Estate Market
While you aren’t legally required to carry property insurance to sell your home, it’s a tough sell on the real estate market. This is because anyone who buys your home without an active property insurance policy is then liable for any pre-existing damage that wasn’t found on the initial inspection and assessment. Or worse – you could be held liable if the new owner files a claim on their insurance. So with that in mind it’s a good idea to sell your home to someone who knows they are in for a restoration project like a cash buying real estate investor or someone who is more concerned with the lot rather than the structure.
Get Your Home Professional Inspected
Before you sell your home, it’s important to get it inspected by a professional. This is to ensure that any damage that was done since you’ve owned the home is documented and accounted for. While this won’t absolve you of liability if something happens to the property after the sale, it will help to speed up the process of selling your home. It will also help to ensure that the buyer has knowledge of what might need to be fixed down the road.
You may want to just sell your home as it is – meaning you will sell your home without disclosing any pre-existing damage or issues with the property. This is risky because if something was missed, the buyer can come back after the sale and hold you liable. This is why it’s important to get your home inspected before you sell it, so that any damage is documented and accounted for.
If you sell your home as-is, it’s best to sell it directly to a cash buyer who doesn’t plan on living in the home or reselling it without fixing it up first. Cash buyers know what they are getting into and don’t mind if there’s work that needs to be done. They just want an inexpensive property that they can fix up and sell for a profit.
Sell Your Home to a Contractor
You can also sell your home directly to a contractor. This is the best way to sell your house without insurance – because it’s sold as-is and you know that all of the work will be done by someone who knows what they’re doing. It ensures that any damage or pre-existing issues with the property are fixed, and by selling directly to them, you avoid having to deal with real estate agents and legalities like disclosure policies and contingencies.
The bottom line is that you can sell your home without carrying property insurance, but it’s a risky venture. The best way to make sure everything goes smoothly is to get your home inspected by a professional, sell it as is to a cash buyer, or sell it directly to a contractor. Whichever route you choose, make sure that you are fully aware of the risks involved and that you are comfortable with them.
Sell Your Home to Quick Fix Real Estate
You know who will buy your home without property insurance? Us! And we’ll pay you cash. We have a simple 3 step process that starts with a free, no-obligation home assessment and ends with cash in your hand as soon as today. All you have to do is pick your preferred close date. Contact us today to get started.