What must new homeowners do after purchasing property related to an existing homeowner's policy?

New homeowners are required to apply for their own homeowner policy following the purchase of property. This is necessary because a homeowner's insurance policy is typically not transferable to a new owner; it is tied to the original insured party.

By applying for their own policy, new homeowners ensure that their specific needs are met, as well as reflecting any changes in use or home condition that may have occurred since the prior homeowner took out the policy. This allows for proper coverage tailored to the new owner’s circumstances, such as the value of the home, any personal property they wish to insure, and their own liability considerations.

The other choices do not align with standard practice for new homeowners. Assuming the existing policy is not feasible since insurance contracts typically stipulate that the policyholder must be the owner of the property. Leaving the property unprotected would create significant risk, and negotiating terms of an existing policy does not apply because the policy belongs to the previous homeowner and cannot be negotiated with the new homeowner.