What Happens to My Homeowners Insurance Policy When I Move?

It can be challenging to figure out what to do with your current homeowners' insurance policy when you're moving. Understand that you won't be allowed to transfer it to your new home, so working with your home insurance company to close out your old policy and get new coverage with them or a new insurer will necessitate some steps. The most important thing is to maintain your home insurance coverage until you no longer own your old home. You are still liable for your former home until the deed is transferred to a new owner, and you don't want to be saddled with potentially large sums for damages or injuries that may occur there.

When you move, how does your home insurance policy change?

As soon as you move from one house to another, your old home insurance policy should be terminated because you no longer own the property. The new owners must obtain their insurance policy. When you purchase a new home, you should have a homeowners insurance policy.

The most important thing you should do before moving is contact your home insurance company. You should notify them that you will be moving shortly. This gives you and them enough time to tie up any loose ends with your current coverage. They can assist you in time the cancellation of your old home insurance policy and possibly assist you in transitioning to a new one. You should contact your insurer as soon as possible to ensure that there is no lapse in coverage.

When I move, can I keep my old home insurance policy?

When you move, you can't keep your old policy. This is because your old and new homes are two different properties with distinct risks. Furthermore, the cost of each policy may differ due to differences in square footage, age, additional structures, and other factors.

On the bright side, you may be able to keep your current insurance company. Of course, this is dependent on your destination. If you are moving within the same state, you should be able to keep your current insurance company. However, this may not be possible if you are relocating out of state. Not all insurance companies or agents are licensed to write policies in all states. As a result, relocating out of state may necessitate searching for a new home insurance provider.

Check with your home insurance provider to see if they offer coverage in the new area you're moving to. Even if they can, you should take advantage of this opportunity to compare home insurance quotes from several different companies. Another provider may be able to offer you a better deal.

When moving, what should you do with your old home insurance policy?

It takes careful timing to cancel your old home insurance policy and start the new one without a lapse in coverage. Here are a few key points to keep in mind:

Don't let your coverage lapse too soon: Do not cancel the old policy until you have officially lost ownership of the property, not based on a future closing date. Closing dates are subject to change, and if the house closes after your old policy is canceled, you may be liable for any damage to the old property or injuries sustained there. Your homeowners' insurance liability coverage can assist you in avoiding these unnecessary expenses.

It's not uncommon for policies to overlap during the transition to a new home if you don't sell your old one right away. In other words, there is a time when you have two distinct policies for two distinct properties.

Give your current insurer plenty of notice: Whether you're moving down the street or across the country, you should notify your current insurer at least a month ahead of time. Consider notifying your insurance company as soon as you make an offer on a home. Having overlapping policies is preferable to taking on additional risks or accruing coverage gaps when you move. You can cancel your old policy when you sell your old house, and some insurers will allow you to backdate the cancellation. There should be no penalty for canceling your home insurance policy when you move.

Arrange for a premium refund: If you are not using the same provider for your new home's coverage, you may be eligible for a refund if you paid your premium in advance. Keep in mind the length of your policy and how far in advance you have paid.

Most home insurance payment options are monthly, bi-monthly, quarterly, semi-annually, and annually. If you pay in advance, you should be able to get a refund for your homeowners' insurance once it's canceled. If you intend to purchase your new home insurance policy from the same company, the remaining amount you've paid for the year will most likely be applied to the premium on the new home.