What Happens to Homeowners Insurance When You Move?

Hand truck with cardboard box as home isolated on white. Moving house concept.

When you start thinking above moving out of your current home, the insurance you’ve invested in the current property is probably the furthest thing from your mind. As you start settling on a new property and work through the negotiations and specifics, it’s time to think about it. A question we commonly get from homeowners is what happens to their homeowners’ insurance when they move. Can I take it with me to the new property? What would a new policy look like? What should I do with the old policy, and when should I cancel? Let’s look at all sides of this issue.

Homeowners Insurance is Tied to the House

To answer that first question: no, you can’t take it with you. A homeowners insurance policy is designed for the needs of a specific property, and not only the house itself, but all the contributing factors such as the age of the home, its location in relation to risk, and other factors that can make two policies very different in terms of costs and coverage. In fact, this is a good time to review how your current policy has served you and if there are any changes to make or if you should look at a new carrier.

Looking at a New Homeowners Insurance Policy

So, with a new insurance policy comes new opportunities. Now’s a great time to look at new carriers and compare perks and premiums (think about taking your policy to an independent insurance agency to easily compare different homeowners policies). When you do, make sure to keep the following in mind as these factors can impact the cost of your new policy:

  • Share Your Home Inspection: Hopefully, you’ll be getting a home inspection on your new home (it’s not just for the first home you own). Make sure to talk to the inspector about factors you’ll want to share with the insurance agency, including construction material and any age issues.
  • Review Factors That Could Change Costs: There are a lot of factors that could increase or decrease a policy’s cost. Making improvements could increase the value of the home, and therefore the cost to cover. Alternatively, installing home security and safety features can reduce costs as you lower risks.
  • New Policies and Home Inventories: Now’s a great time to revisit any additional policies you might need to add on due to changing circumstances and additions. While you’re getting ready to pack up, it’s also a great time to do a home inventory to make sure you’ve got the coverage you need.

Keeping Your Current Homeowners Policy

One last thing: make sure to keep your old policy running until two things are completed. First, homeowners’ insurance can help you move by keeping your possessions covered, even during the move. Second, make sure to keep coverage on your old home until it’s sold. After that, you can cease coverage.

The TJ Woods Insurance Agency is here to help when it comes to your questions about homeowners insurance. Whether you’re looking for a new policy or have questions about your move and coverage, contact us today to get help.