What generally happens to an insurance policy if the insured property is sold?

When a property that is insured is sold, the typical outcome is that the insurance policy ends unless there are specific provisions that allow for the transfer of coverage to the new owner. This principle is based on the nature of the insurance contract, which is often tied to the ownership of the property.

In most cases, insurance policies contain a clause that states that the policy becomes void or terminates upon the sale of the insured property unless the insurer agrees to continue coverage for the new owner or unless the policy explicitly allows for such a transfer. This means that the new owner would need to obtain their own insurance policy to ensure that the property remains covered after the sale.

In some instances, if properly addressed in the contract, a policy may provide for continuity of coverage, but this is not the default situation. The end of the policy upon sale is the standard procedure in many jurisdictions, including Florida, underscoring the importance of examining the specific terms of the policy and the agreement made during the sale of the property.