When you move into a new home and out of an old home there can be a mix of emotions. Excitement over the new home you are moving into, and a lingering sadness saying goodbye to your old home that holds so many memories.
In the emotions and chaos of moving, many people forget about their homeowners insurance. Make sure you notify your insurance provider and correctly prepare for the move. Whether you’re buying a new house or selling your old one, it is important to avoid a gap in home insurance coverage..
Why You Should Update Your Homeowner Insurance Before Moving
Your homeowner’s insurance does not automatically transfer to your new home when you move. It’s crucial to get in touch with your insurance company as soon as your move is complete for a number of reasons:
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Since your current policy is linked to your previous residence, it won’t cover your new residence unless you make those changes.
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If you still own your own home, updating your homeowner’s insurance to include your new home will allow you to have coverage for both properties.
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Proof of insurance is usually required by mortgage lenders prior to the closing of your new residence.
How Does Moving Affect Your Homeowner’s Insurance Coverage?
Your insurance may need to be modified to account for the extra risks associated with your new residence. There are various factors to consider when moving.
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Home Value and Replacement Cost: To account for the increased cost of replacement, you will need to modify your coverage limits if your new home is bigger, more expensive, or has special features like custom construction or upscale finishes.
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Location-Specific Risks: Every location has a unique set of risks. Additional coverage, such as flood insurance or windstorm protection, may be required if you move to an area that is vulnerable to natural disasters like hurricanes, earthquakes, or floods.
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New Features or Amenities: If you are moving to a home that has new features or amenities, like swimming pools, home offices, or updated security systems, you need to include them on your homeowners insurance.
What Should You Do With Your Old Policy?
What happens to your current homeowners policy is dependent on your plans for your old home. Below are three common scenarios most people do with their old home:
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Selling your home: After the sale is finalized, cancel your coverage. Avoid leaving the property without insurance by ensuring that coverage is maintained until the formal transfer of ownership.
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Renting out your home: Transform your current homeowners insurance into a policy for a landlord or rental property. You are protected by this kind of policy from hazards related to renters and rental income.
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Leaving it vacant: An unoccupied house is more vulnerable to weather-related damage and vandalism. You will require specialized vacant property insurance because most conventional plans do not cover vacant homes.
Tips for a Smooth Transition Of Home Insurance
If you want to make sure the transition of your home insurance policies is smooth without a lapse in coverage, you should do the following:
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Bundle Policies: Bundling can save you money if you’re temporarily insuring several residences.
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Take Inventory: During a move, it’s a good idea to update your personal inventory. This makes it easier to guarantee that your new home’s assets are adequately covered.
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Notify Providers: To prevent problems with invoicing or correspondence, update your address with your insurance provider.
The Special Case Of Flood Insurance
Flood insurance for a new home is a special type of case. We recommend contacting your insurance provider long before you purchase the home. It can take longer for a flood insurance policy to become active so communicate with your homeowners insurance provider even before purchasing the home that is located in the flood zone.
Protect Your New Home With Strickler Insurance
Moving is stressful enough without worrying about whether your new home is properly insured. Helping homeowners transfer their coverage during moves is our area of expertise at Strickler Insurance. Our staff can help you find any savings opportunities, update your insurance, and make sure your new property is completely covered.
Contact Strickler Insurance today to learn how we can help!
