Arizona Adjuster Practice Exam

Can Jack transfer his homeowners policy to Sue when selling his home?

1. Yes, it's automatic

2. No, unless the insurer gives written consent

3. Yes, with a fee

4. No, it can’t be transferred under any condition

The correct answer is: No, unless the insurer gives written consent

When Jack sells his home, the homeowners insurance policy typically cannot be automatically transferred to the new owner, Sue, without the insurer’s approval. Homeowners insurance is a personal contract between the homeowner and the insurance company, and each policy has specific terms regarding transferability. Most policies require written consent from the insurer before a policy can be assigned to another party. This is because the insurer assesses risk based on the individual circumstances of the policyholder, which may change with a new owner. While some policies may have provisions for automatic transfer or fees associated with transfer, it is generally standard practice to require the insurer's consent for such a change. Therefore, the correct choice emphasizes the need for the insurer's approval to ensure that the coverage continues under the new ownership.