If a home insurance policy is prepaid for a full year but the home gets sold, is the new owner covered after the sale?

No, the new owner of the home would not be automatically covered under the previous owner's home insurance policy. When a home is sold, the ownership of the property transfers to the new owner. As a result, the new owner would need to obtain their own home insurance policy to ensure they have coverage for any potential losses or damages that may occur after the sale. While the previous owner may have prepaid for a full year of coverage, the policy is tied to the specific property and the person who purchased the policy. If the property is sold, the policy does not transfer to the new owner. It is important for both the seller and the buyer to ensure that insurance coverage is in place during the transition period, particularly if the sale is taking place mid-policy term. The seller may need to cancel their policy and obtain a refund for any unused premiums, while the buyer will need to purchase their own policy to ensure they are covered.