What is Sellers' Insurance? (Real Estate)?

Question

What is sellers' insurance? All I know is it provides some sort of financial security in a real-estate transaction. What is it used for and for what reasons might you make a claim? For the purposes of my question, this is residential real-estate sellers' insurance. Thanks for your answers!

Answer 1

Sellers insurance is just a homeowner's policy, that could also include an endorsement for a vacant home that is for sale.  You want to cover the home for all perils.  It will also cover liability if someone gets hurt while they are on the property.  As the seller, you want to have the home insured for anything that might happen to it.

You might make a claim for several reasons: water damage, fire, vandalism, tornado, damage from a vehicle running into it, and many more things you probably haven't thought of.  :)

Answer 2

There isn't a policy called "seller's insurance".  ANY insurance policy will provide a type of financial security.  

Most likely, you're referring to either real estate errors and ommissions coverage, or the homeowner's homeowner insurance policy.