Insurance Question as it relates to buying and selling a house? -

: Hi! I am currently living in a home and am looking sell this one and purchase another one to move into in a safer and better neighborhood. Two : questions: Should I buy first or sell the one I am in first? ( I inherited the house and it is paid for). Second, How does the insurance work, as one will be empty or semi-empty ( the one I am in now) if I find a new house first, and move into it. Should I keep the same insurance company I am with ( who is barely insuring this one I am in) , or search for a new one with the new house? Some insurance companies won't insure a vacant house ( ie. State Farm). How does the insurance thing work in the buying and selling process, and will that influence or impact my decision to buy or sell first? Thank you so much! Since this is currently a buyer's market, I would sell the home you are currently occupying first. You should have your real estate agent place a 30 to 60 closing date so that you have time to place a contract on a home to purchase. The home that you purchase should have a contingency clause that it is subject to closing the same date as the home that you are selling. You should then not have a vacancy. The home you are currently in should be insured under a homeowners insurance policy as long as this is your primary residence which you are occupying and is in your name. A few days before the settlement date on the new home, you would purchase another homeowners insurance policy for the new home. After you close the settlement of the home you are purchasing, you cancel the policy on the old home. Therefore there should be no underwriting issues in terms of vacancy. Also FYI all "standard" insurance companies consider vacant properties high risk. Vacant properties are usually insured in the "sub-standard" market such as Lloyd's of London and are not eligible for homeowners insurance only a very basic (stripped) policy which usually covers only "fire". Don't let insurance become a problem with your selling and buying. That's an agent's job. Talk to one and let them find the solution. That's what they get paid for. Homes sales are slow now in most parts of the country and I feel they will stay that way for the next couple of years. If you don't want two houses to care for I would suggest selling first and then buying. If you begin calling insurance agents you will find one that can take care of all your needs. Most insurance companies won't insure a vacant home. The ones that do, have severely limited coverages. If it were me, I'd sell the one you're in, first. With the real estate market being as slow as it is, you might want to sell your house FIRST - and give yourself a month or so after the closing to buy a house. If you move (and you mentioned State Farm, I didn't) your insurance company will normally cancel your house insurance 60 days after you move out and it becomes vacant. I just insured a vacant house (FOR a State Farm agent - ONE of the things we do) and it was about TWICE what we was payig for LESS coverage. It's NOT un-doable, but, you might save yourself some time and money. Be looking around and if you HAVE to buy a house, buy it - and hope you sell within the 60 days, or find a local independent agent that specializes in the "specialty" market and can insure the vacant house. What about RENTING the house that you are currently in? If the neighborhood is decling, you might have a hard time selling it, and the rent could be another source of income. Tenant dwelling insurance is NOT as costly as VACANT house coverage. Good luck and I hope this helps!