Homeowners Policy Cancellation Because Owner-occupied House Is "For Sale"

[ArtBuono]

I just received advice from my agent that my homeowners insurer will be sending me a cancellation notice because they have learned that my house is for sale. I have several problems with this, starting with the fact that my house is not for sale. Second, I understand the policy of nonrenewal or cancellation when a house is vacant (whether or not for sale) or ceases to become the insured's principal residence, but I have never heard of a policy or underwriting guideline that would prohibit the owner of a principal residence, owner-occupied house from selling the house or listing it or offering it for sale.

I am working with my agent to relieve my insurer of its misapprehensions. But has anyone here ever heard of an insurer cancelling a policy simply because the owner decides to sell it - while he remains the occupant of the home as his principal residence. Could this actually be the policy of a major, reputable insurance company?

Thanks,

Art

 

[marindependent]

Art if the home is Not for Sale, why does the Insurer believe it is?

 

[djs]

Every once in a while addresses get crossed up. Somebody enters one incorrectly, or they use the wrong zip or whatever. This can have unintended consequences on stuff like this.

While it shouldn't happen, the world is subject to human (and computer) error. I was had a problem because I was told my house was vacant. It wasn't. Some inspector didn't look very hard, but on the day they looked, we had no furniture in our living room and he saw that through a window and thought the house was vacant. This was actually on my mortgage side, not insurance, but same type of problem. I didn't even know the mortgage company would do an inspection, but I guess it was because it was an owner occupied loan and they wanted to make sure it actually was owner occupied.

I've had inspectors inspect the wrong house. I've had insurance companies send inspectors to the wrong house. I've personally taken pictures of the incorrect house. Bottom line is, it happens. Its usually pretty easy to sort out though.

It will be good for a laugh if and when you actually sell your house.

Also, they likely didn't cancel because it was listed for sale but rather because the listing didn't match their house data which caused the computer to 'panic'. Its just further proof that it probably wasn't actually your house.

Dan