Moving to a new home is an exciting yet complex process that involves more than just packing and arranging your new living space. One important task you can’t overlook is your homeowners insurance. Whether you’re relocating to a nearby neighborhood or a completely new state, it’s essential to review your current insurance coverage and make the necessary updates to ensure your new property is fully protected.
Does Homeowners Insurance Transfer to a New Home?
In most cases, homeowners insurance policies do not transfer from one property to another. Each home presents unique risks, such as the age of the house, the materials it’s made from, and additional features like swimming pools or decks. For this reason, you’ll need to adjust your coverage to fit the specifics of your new home.
Even though the policy doesn’t automatically carry over, it’s crucial to maintain coverage for your old home until it’s officially sold. You remain liable for any damages or accidents at the property until the deed is transferred, so you’ll need to keep your insurance in place during this time.
Temporary Coverage During the Move
When you move, there are certain risks involved, such as potential damage to your belongings during the transport or the possibility of theft. Your existing homeowners insurance may offer some coverage in these situations, but it’s important to review your policy’s terms to confirm this. Additionally, ask your insurance provider about specific coverage options they offer during a move.
Many moving companies also provide liability coverage options. Federal law mandates that interstate movers offer two types of coverage:
- Full-value protection: This comprehensive option repairs, replaces, or offers a cash settlement for lost or damaged items. However, it excludes high-value items worth more than $100 per pound.
- Released value protection: This basic coverage is typically provided for free by the mover, compensating for lost or damaged goods based on their weight, offering only 60 cents per pound.
Updating Your Homeowners Insurance After Moving
When you move within the same state, your current insurance provider may be able to adjust your existing policy to fit your new home. However, if you’re relocating to a new state, you might need to find a new insurance provider, as your agent might not be licensed to offer coverage in that area.
Keep in mind that your homeowners insurance policy is tied to you, not the property, so you can’t transfer it directly to the new owner if you sell your house. It’s important to notify your insurer about your upcoming move well in advance so they can help you with the necessary updates or connect you with an agent in your new location.
Key Steps for Updating Your Insurance Coverage
Here are some critical steps to ensure you’re adequately covered from the moment you step into your new home:
- Review Your Current Policy
Before moving, review your current homeowners insurance policy. If you’re moving out of state, verify whether your provider offers coverage in your new area. Compare your current possessions to your existing policy to determine whether you need to make adjustments. Ensure your liability coverage is appropriate for the new home and check for any exclusions that may pose risks. - Inform Your Insurance Provider
Once you’ve settled on your new address, notify your insurance company and provide them with the details of your new home. This includes the property’s value, location, age, materials, and safety features. Your insurer will then help determine the appropriate premium and coverage for your new home. - Consider Policy Transfer Options
While you can’t simply transfer your old policy, you may be able to work with the same insurer for your new home. They will present you with options based on your new address and property details. Take the time to review these options to ensure they provide the right coverage for your new circumstances. - Shop Around for a New Policy
If your current insurer doesn’t cover your new location, it’s time to explore other providers. You can start by searching online or asking local real estate agents for recommendations. When speaking with potential insurers, compare premiums, deductibles, and coverage options. Be sure to check for exclusions and limitations to ensure you’re getting comprehensive protection.
What Happens if You Forget to Cancel Your Old Homeowners Insurance?
One of the most common mistakes homeowners make during a move is forgetting to cancel their old insurance policy. Homeowners insurance doesn’t automatically end when you sell your home, and if you fail to notify your provider, they may continue charging you premiums for a property you no longer own.
Neglecting to cancel your old policy can lead to unnecessary costs and potential complications. Not only will you be wasting money, but you might also face a lapse in coverage, which could leave you financially vulnerable in the event of unforeseen damage or accidents at your former home.
To avoid these issues, make sure to inform your insurance provider about your move as soon as possible. Update your policy with your new address and ensure you’re only paying for the coverage you need. This proactive approach will save you from unnecessary expenses and ensure your new home is properly protected.
Conclusion
Updating your homeowners insurance after a move is a crucial step in protecting your new property. Whether you’re staying within the same state or relocating across the country, take the time to review your coverage and make necessary adjustments to match your new home’s needs. By following these steps, you’ll ensure that you’re properly covered and avoid potential gaps in your protection.
