Can B.C. Home Insurance Be Transferred to the New Owners?
If you're selling your British Columbia home, can the new buyers take over your existing home insurance policy?
The short answer is no. New owners cannot assume or transfer an existing B.C. home insurance policy into their name.
Why B.C. home insurance policies aren't transferable
Home insurance policies are legally binding contracts between the insurer and the current homeowner. They are tailored to both the specific British Columbia property and the personal risk profile of the policyholder.
These contracts account for the homeowner’s claims history, credit profile, and lifestyle, as well as property-specific details such as construction type, materials, age, location, and replacement cost.
Even though the physical B.C. home may remain the same at the time of sale, the new owner’s personal risk details differ, which makes the existing policy invalid once ownership changes.
When ownership of a British Columbia property changes
The existing policy remains valid only for the seller — not for the buyer or the property itself.
New B.C. homeowners must arrange their own home insurance coverage to protect their interests (and those of their mortgage lender) starting on the possession date. Their new policy should be active as of the closing of the sale.
What B.C. sellers should do with their home insurance policy
Notify your insurer as soon as you plan to sell. You must maintain your British Columbia home insurance until the buyer officially takes legal possession, as any damage that occurs before closing remains your responsibility.
Once the transaction is complete, you should:
- Notify your insurer of the exact closing date
- Cancel your policy effective the possession date (or request a refund for prepaid premiums)
- Obtain written confirmation that your policy has been cancelled
There is no reason to keep a home insurance policy after your B.C. home has sold. Once the sale is finalized, cancellation is the appropriate next step.
What B.C. buyers need to know
While home insurance is not legally required in Canada, it is strongly recommended — and most British Columbia lenders will not approve a mortgage without home insurance in place.
Buyers must have their own policy active before possession to protect the home, their belongings, and satisfy lender requirements.
Are there any exceptions for keeping previous home insurance?
If you are moving to a new home, your insurer may be able to carry over elements of your existing home insurance policy and issue a new policy for your next property.
This is not a direct transfer — your insurer will reassess the new home’s risk and create a new policy with updated terms, conditions, and pricing. No home insurance policy can ever be transferred to the new owner of your previous home.
In conclusion
Home insurance policies cannot be transferred to new owners in British Columbia. Buyers must purchase their own policy before taking possession, while sellers should keep coverage active until the sale closes and cancel afterward.
If you’re buying or selling a home and have questions about timing, coverage, or cancellations, our home insurance experts can guide you through the process.
FAQs
Can a buyer assume my existing B.C. home insurance policy?
No. Home insurance policies are individualized contracts and cannot be transferred to new owners.
What should I do with my B.C. home insurance policy when I sell my house?
Keep your policy active until the sale closes, then cancel it effective the possession date. Any unused premiums may be refunded, subject to your insurer’s cancellation terms.
Can I transfer my British Columbia home insurance to a new property if I’m moving?
Yes, in many cases your insurer can use your existing policy as a starting point for your new home, but it will be reissued as a new policy after reassessing risk. Our home insurance specialists can help with this transition.
Will my belongings be covered during the move?
Some home insurance policies offer limited coverage for belongings during a move, but coverage varies. Additional moving insurance may be recommended for full protection.
Can I cancel my B.C. home insurance at any time, and will I receive a refund?
Yes. You can cancel at any time. If you paid your premium in advance, you may receive a refund for the unused portion, although short-rate cancellation fees may apply depending on your policy.
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Western Coast Insurance Services Ltd. is a wholly owned division of Western Financial Group Ltd. Insurance products are underwritten by certain licensed insurance companies and are only available throughout British Columbia, Canada.