Can I Keep My Home Insurance When I Move?

Homeowners insurance is pivotal to protecting your home. It provides peace of mind that your property, belongings, and financial security are safeguarded against unforeseen events. How do you transition home insurance coverage when you move to a new home? Perhaps you are more focused on reducing clutter and packing boxes, but it’s important to pay attention to this key component of home ownership. We will explore how to ensure a smooth transition of your coverage, address potential coverage gaps, and make informed decisions to protect your new home.

1. Understanding Your Current Policy

Understanding your current home insurance policy is a proactive step in ensuring your assets and property remain protected when moving to your new home. Here are some tips to help you facilitate the transition:

• Verify if your insurance provider offers coverage in your new location or if you need to seek a new insurance company.
• Take inventory of your possessions and determine if you need to update your policy to reflect any significant changes in the value of your belongings.
• Review your liability coverage to ensure it’s adequate for your new home and any potential risks associated with the move.
• Dive into your policy’s fine print to understand any restrictions or special provisions that impact coverage during a move, such as coverage for items in transit or stored temporarily.

2. Notifying Your Insurance Company

Once your move is confirmed, reach out to your insurance company to update your policy with your new address and property details. They will guide you through the process to obtain a home insurance quote, which typically involves providing them with details about the new property, including its location, value, age, material, and safety features. These rating factors will help your insurance company determine the premium for your new home.

3. Options for Policy Transfer

May I transfer my home insurance to my new home? You may be able to keep the same insurance company, but you’ll need a new home insurance policy since your old and new homes are two separate properties. Additionally, your new homeowners insurance policy will be rated as a new risk with a different premium since the home construction, area climate, and potential risks — e.g., swimming pool — will likely change.

Insurance carriers don’t typically insure in all areas of the country; should you move to a different region or state, there is a likelihood that your current carrier may not provide insurance in the area that you are moving to.

4. Exploring New Insurance Options

When you’re moving to a new home, it’s a good opportunity to explore and potentially select a new home insurance policy that best suits your needs. Here are a few tips to keep in mind:

• Research different insurance providers available in your new location and compare coverage options, deductibles, and premiums.
• Carefully review the terms and conditions of potential insurance policies and pay attention to exclusions, limits, and any optional endorsements that could enhance your coverage.
• Reach out to your real estate agent, new neighbors, or local friends for recommendations.
• Work with a company who can tailor coverage to your specific needs, answer your questions, and provide expert advice on what will best protect your new home.

5. Rating Factors – Premium and Coverage

When moving to a new home, your premium and coverage may change depending on these factors:

• Property’s location: Properties in areas prone to natural disasters — e.g., hurricanes, floods, or wildfires — often have higher premium or restricted coverage due to the increased risk.
• Crime rates: Areas with higher crime rates, including burglaries and vandalism, can lead to higher insurance premium since there’s a greater risk of property damage or theft.
• Proximity to emergency services: Homes closer to fire stations and police departments may enjoy lower premiums as quick response times can reduce the severity of damage in an emergency.
• The home’s age and condition: Older homes may have higher premium due to the potential for outdated electrical or plumbing systems that could pose greater risks.
• Building materials: Homes built with fire-resistant materials, like brick or concrete, may have lower premium than those constructed with wood, which is more susceptible to fire damage.
• High-risk home features: Special features in your home, such as a swimming pool, trampoline, or wood-burning stove, can affect your insurance costs since these features may increase liability risks.

6. Timing Considerations

Timing out when to end your old home insurance policy and begin your new one can be tricky to plan but simple to carry out.  An insurance policy should be canceled after your home is sold and transferred out of your name (i.e. close of escrow); a new insurance policy should be made effective just before the purchase of your new home.   Since policies are not transferable, there shouldn’t be any confusion from one to the other.

Can You Change Homeowners Insurance at Any Time?

Yes, you can change home insurance whenever you want, but you might be subject to an early cancellation fee if your old policy doesn’t end when you switch. Check with your insurance company to determine their cancellation policy.

When Is the Best Time to Cancel Homeowners Insurance When Selling a House?

Until the closing process is finalized, the home you’re selling is still yours. It’s best to cancel your coverage once the buyer officially owns your home.

When Do I Need to Get Home Insurance for My New Home?

New home insurance is necessary before closing on your new house; mortgage companies all require a homeowners insurance policy listing them as the mortgage loss payee prior to funding a loan for your purchase.

7. Understanding Coverage Gaps

You should never allow a coverage gap; even one day without insurance can have dire consequences.  For example, if a severe storm damages your old home, you must pay out of pocket for repair or replacement costs. If you’re in a situation where you buy a new home before selling your old one, keep both insurance policies until you sell your old home. While you’ll pay for two monthly premiums, it’ll give you peace of mind that your properties are protected.

8. Working with Insurance Companies

Navigating home insurance during a move is much easier when working with a professional insurance representative. Here are some tips you should consider:

• Communicate openly: Inform your representative about your new property, any unique features, and any changes in your circumstances, as this information is crucial in tailoring the right coverage for you.
• Assess additional coverage needs: Your insurance company can help you assess any additional coverage needs that may arise due to the differences in your new property, location, and risks.
• Ask questions: It’s your responsibility to understand your policy and make informed decisions about your coverage, so don’t hesitate to ask questions.

Conclusion

When making your moving to-do list, don’t forget about securing homeowners insurance for your new home. Remember, you can’t transfer your old home’s policy to your new home. By following the tips above, you can seamlessly transition into your new home without a hitch.

Whether you’re looking to buy, sell or refinance your home, HDA Insurance Brokerage is available to insure your new property; whether an owner-occupied home or a tenant-occupied rental unit. You may obtain a FREE Home Insurance Quote Online when you’re ready.