If title of the insured property changes, the new party of interest is automatically covered in all of the following circumstances, except one. Pick the exception.

The correct choice indicates that in the event of a sale, a new party of interest is not automatically covered by the insurance policy. This distinction is important in the context of insurance because a sale of property typically involves a transfer of ownership where the new owner must obtain their own insurance coverage.

When property changes hands due to sale, the existing insurance policy generally does not extend coverage to the new owner automatically, as the terms of the policy are tied to the original insured. The transferring of title requires care to avoid gaps in protection, necessitating that the new owner either assume the existing policy or secure a new one to ensure adequate coverage.

In contrast, changes in title due to succession, operation of law, or death typically imply situations where coverage can continue or adjust automatically to accommodate the new party of interest without needing explicit action from the new owner. These scenarios often involve legal mechanisms that provide for the smooth transition of rights and obligations derived from the original policyholder.