When should I cancel insurance?
“When should I cancel insurance?” — Read this before you cut the cord on your Georgetown home insurance.
The short, hard answer
Cancel your homeowner’s insurance the day ownership legally changes hands — not the moving day, not the day you hand over keys, and not when the moving truck leaves. In most Georgetown sales that day is the closing date recorded by your lawyer. Confirm the exact date in your Agreement of Purchase and Sale and with your lawyer before you cancel.
Why timing matters (and why this is not negotiable)
You still own the property until title transfers. If you cancel too early and a fire, storm, theft, or liability claim happens, your insurer can refuse a claim because you had no coverage. That leaves you on the hook for repairs, legal exposure, and potential loss of sale proceeds. In Ontario, the legal transfer of title is handled at closing by your real estate lawyer. That single fact controls the insurance timeline.
Georgetown specifics you must know
- Local weather risks: Georgetown and Halton Hills face heavy snow, freezing rain, and seasonal ice that can damage roofs, gutters, and driveways. Keep insurance active through winter storms until closing.
- Older homes in Georgetown’s central neighbourhoods: Many homes near downtown or older lots come with aging roofs and older heating systems. Lenders and insurers pay attention. Do not cancel early.
- Vacant property rules in Halton Region: Insurers often treat vacant homes as higher risk. If you leave the house empty before closing, get vacant-home coverage or keep existing coverage and inform your broker.
- Closing windows at local law firms: Georgetown lawyers and notaries may register title late in the day. Don’t assume ownership transfers early; confirm the lawyer’s confirmation of registration.
A practical timeline for Georgetown home sellers (use this as your moving checklist)
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60–30 days before closing
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Call your insurance broker. Tell them the property is listed and ask about your current policy’s transfer and cancellation rules. Ask about options for vacant-home coverage.
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Review your Agreement of Purchase and Sale (APS). Note closing date and possession date. Sometimes these differ — possession can be earlier or later than closing.
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14 days before closing
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If you’re buying another home, arrange the new policy with the start date on or before your possession date for the new property.
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If you plan to vacate before closing, buy short-term vacant-home insurance. Many insurers require notification within a set number of days a home is unoccupied.
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7 days before closing
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Confirm closing details with your lawyer in Georgetown, including anticipated registration timing.
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Ask your insurer about pro-rated refunds and what documentation they need to process any refund.
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Closing day
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Do not cancel your current homeowner’s insurance until your lawyer confirms title registration and funds transfer are complete.
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Once your lawyer confirms registration, contact your insurer and request cancellation effective the date of closing. Get written confirmation and ask for a pro-rated refund if applicable.
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After closing
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Keep your written cancellation confirmation and any refund documentation for your records and tax purposes.
Step-by-step: How to cancel properly (and prevent claim denial)
- Confirm the legal closing date and time with your real estate lawyer.
- Keep your policy active through the closing date unless your lawyer or buyer confirms otherwise in writing.
- If you will vacate early, call your broker and purchase vacant-house coverage or an endorsed policy that covers unoccupied risks.
- On closing day, wait for your lawyer’s email or phone confirmation that title is registered and funds transferred.
- Call your insurer or broker immediately. Give them the exact date you want the cancellation to be effective (the date of closing).
- Request written confirmation of cancellation and ask for a pro-rated refund (many insurers return unused premium).
- If you’re buying another home, arrange the new policy to begin either on your possession date or the day you move into the new property — no gap.
Money, refunds, and mortgages — what your lender wants
- Mortgage discharge: Your mortgage lender needs proof you had insurance up to the payoff. Lenders typically require the mortgage to remain insured until they release the mortgage charge at closing.
- Refunds: Insurance companies usually pro-rate refunds. How much you get back depends on your policy type and the insurer’s rules.
- Lender proof: When you pay off your mortgage at closing, your lawyer will request documentation from your insurer or provide confirmation. Do not cancel early or the lender may flag your account.
What if you sell to a buyer who moves in early? Possession vs. closing
Sometimes possession (when the buyer gets keys) is earlier than the registration of title. If possession is earlier, the buyer becomes responsible for insurance on that possession date, not the seller. Check your APS closely. If you agreed to an early possession, you should have written confirmation that the buyer takes on the liability and insurance responsibilities on that date. Document it. If there’s no clear transfer, maintain your policy until your lawyer confirms title transfer.
Vacant house before sale: do not assume your regular policy covers it
Most home insurance policies in Ontario limit or exclude coverage when a house sits vacant for a set period (commonly 30–60 days). If you move out weeks before closing, tell your broker and add a vacant-home endorsement or short-term policy. The cost is usually far less than a denied claim for vandalism, water damage, or fire.
Legal exposure if you cancel too soon
- Claim denials: Insurers can deny claims that occur after cancellation.
- Lawsuits: If someone is injured on the property after you cancel, they may sue you if you still own the title at that time.
- Closing disputes: If damage occurs after cancellation but before title transfer, buyers can ask for price adjustments, repairs, or even rescind agreements in some cases.
Local resources and quick contacts
- Your real estate lawyer in Georgetown — confirm registration timing and exact closing date. Small delays can happen with local land registry processing.
- Your insurance broker — local brokers in Halton Region know which insurers offer vacant-home endorsements and how claims are handled locally.
- Halton Region property office — for questions about property tax adjustments and final billing tied to closing.
Real examples (short, applicable scenarios)
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Scenario 1: Closing set for March 15, you move March 12. Action: keep your insurance active until lawyers confirm registration on March 15. If empty from March 12, buy vacant-home coverage.
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Scenario 2: Possession given to buyer on March 10, closing on March 15. Action: confirm in writing buyer takes responsibility for insurance and liability on March 10. Keep documentation.
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Scenario 3: You close and buy a new house the same day. Action: arrange new policy to start on the date you take possession of the new house. No gap.
Final playbook (plain, actionable) — do this checklist today
- Read your Agreement of Purchase and Sale. Note closing + possession dates.
- Call your insurance broker. Tell them exact dates and ask about vacant-house rules.
- Coordinate timing with your real estate lawyer in Georgetown.
- Do not cancel until lawyer confirms title registration.
- Get written confirmation of cancellation and pro-rated refund.
- If you’ll be out of the home before closing, buy vacant-home protection.
FAQs — quick answers Georgetown home sellers need
Q: Can I cancel insurance the day I move out? A: No. Cancel on the legal closing date after your lawyer confirms title transfer. If you move out earlier, keep coverage or buy vacant-home insurance.
Q: What if the buyer takes possession before closing? A: If possession is earlier, the buyer typically becomes responsible for insurance on that possession date. Get this in writing and keep a copy.
Q: Will I get a refund if I cancel early? A: You can get a pro-rated refund, but if you cancel before closing and then a claim occurs, the insurer can deny claims. Don’t risk it.
Q: Do I need to notify my mortgage lender? A: Your lawyer handles payoff instructions at closing. The lender will be informed through the mortgage discharge process. Don’t cancel insurance until the mortgage is paid off at closing.
Q: What if my home will be vacant for weeks before closing? A: Buy vacant-home insurance or an endorsement. Regular policies often limit coverage if a home is vacant too long.
Q: Who do I call in Georgetown for help? A: Call your real estate lawyer first. For local real estate help and moving guidance, contact Tony Sousa, Local Realtor, at tony@sousasells.ca or 416-477-2620. Visit https://www.sousasells.ca.
If you want straightforward help coordinating closing dates, lawyers, and insurance so you don’t cancel too early — call someone who sells and moves homes in Georgetown every month. That will save you money and headaches. Contact Tony Sousa at tony@sousasells.ca or 416-477-2620 for local support and referrals to trusted Halton Region lawyers and insurance brokers.
