Whether it’s an electric bike or a home, anyone who sells an insured item should know that the policy also transfers to the buyer. This is what the magazine Finanztest points out. Only the buyer and the insurance company have the right to terminate the contract.
Even if you no longer have any information about the buyer after the sale, you are not bound by the contract forever, says Torsten Widmann, head of the product management department at WGV. “If a client no longer owns the insured property, we cancel the contract because there is no risk.” Finanztest provides answers to the most important questions about sales and property insurance, such as car, building or mobile phone insurance:
What happens when you sell a bike?
Anyone who buys a high-quality bike often wants to insure it against theft and accidents. The fact that existing insurance is transferred to the buyer when buying a second-hand can be an advantage: there is no insurance gap in which you are left without protection. Also, not all insurers offer bike insurance for used bikes.
Therefore, it may be practical to take over the previous owner’s policy. Important: The buyer or seller must immediately notify the insurer that the bicycle has been sold. Otherwise, it may happen that you do not have to pay in case of damage. Often a report by phone or email is sufficient. However, insurance companies may specify the form of text (e-mail, letter) or written form (signed letter, electronic signature) in the conditions.
Does that also apply to mobile phones or surfboards?
Yes, insurance for electronic devices, musical instruments or sports equipment is also automatically transferred to the new owner in the event of sale. This is regulated by the Insurance Contract Law in article 95.
If the buyers do not want the insurance because they do not need the protection or because they want to write another contract, and the insurer does not want to be “forced” to the customer, both the buyer and the insurer can terminate the contract. within a month of purchase. If you find out about the sale or the existence of the insurance only later, you have one month from that moment to do so. Buyers who wish to cancel their contract may do so immediately or at the end of the current insurance period. The insurer must give a month’s notice to give the buyer time to sign a new contract with another company if necessary.
The seller no longer has the right to withdraw from the contract after the sale. Early termination may prevent the insurance from transferring to the new owner. There is no special right of termination for intended sale.
Who pays the contributions?
During the current insurance period, often one year, the buyer and seller are jointly responsible for the insurance costs. Usually the seller pays in advance. If you were to sell an insured bike in the middle of a one-year contract and the buyer wants to continue the contract, both parties must agree in advance who will bear the costs. Ansgar Staudinger, professor of civil law at the University of Bielefeld, explains: “The seller can add the insurance premium for the remaining six months to the purchase price.” If the buyer extends the contract, he must pay only the costs. In the event of termination before the end of the contract, the insurer must reimburse the seller for the excess premium paid.
Can the building insurance be covered?
Yes, the rules also apply to the sale of a residential building. Here it is especially important not to have periods without insurance coverage, since a fire or a violent storm can generate considerable costs.
David Sahlender, a lawyer specializing in insurance law at the Wittig Ünalp law firm, recommends specifying in the purchase contract whether there is insurance. He points to another aspect: “A buyer assumes insurance coverage, but may not be aware of the duties and obligations that are necessary to maintain it.” pipeline. The scope of insurance is also important information for homeowners.
What rules apply when selling a car?
If you buy a used car, you take over the previous owner’s policy. When selling, it must be contractually agreed that the buyer will immediately register the car. You must present confirmation of insurance when admitted. The previous owner’s policy is automatically canceled when the buyer has purchased a new one. However, the change of ownership must be communicated to the insurer.