Under the standard contract of purchase and sale, used by most Realtors, the RISK of the property passes to the Buyer at 12:01am on the CLOSING DATE. Therefore Buyers are well advised to ensure that their insurance policy is effective at 12:01 on the CLOSING DATE.
Often Buyers will obtain insurance to be effective the POSSESSION DATE (or moving date), this can leave the property uninsured for a period of time and, may, in the event of a fire/ flood/ or other insurable event happening at this time, cause great loss to an uninformed Buyer.