What happens if my property is damaged between contract and closing?
Under the standard NYC contract, if damage exceeds 5% of the purchase price, the buyer can cancel or proceed with an assignment of your insurance proceeds. For damage under 5%, the buyer must close but receives a repair credit. Outside NYC, GOL §5-1311 may shift risk to the buyer at contract execution unless the contract overrides it - most residential contracts do. Review your contract's risk-of-loss provision with your attorney before signing.
From the seller playbook: Insurance Coverage Transition at Sale - Seller Obligations Through Closing
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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