Moving: How to transfer your home insurance

Posted in Home

Couple unpacks boxes in new home

Maybe you’ve outgrown your starter home or you’ve finally found the home of your dreams. When you’re ready to move somewhere new, make sure your home insurance moves with you.

Here are five common questions about transferring home insurance during a move:

1. Can I transfer my home insurance policy to my new home?

Yes, but because every home is unique you will need a new home insurance policy and it will likely cost a different amount since the home construction, area and potential new risks (like an in-ground pool) would change when you move to a new place.

One caveat here is if you move out-of-state. Your insurance agent might not be licensed to write insurance policies in that state. If you’re moving out-of-state, check with your insurance agent and see if they can continue to serve you. If not, they might be able to help you find a new agent in the state you’re moving to.

2. When do I need to have home insurance when I’m buying a home?

You should have a home insurance policy for your new home at closing. If you’re using a mortgage lender, they will almost always require you to secure homeowners insurance before they agree to finance your home.

It’s a good idea to inform your insurance agent when your offer on the house has been accepted. They can help set up the new policy with your insurance company and have it ready to share with your mortgage lender, or at the very least, have it ready for you when it’s time to close on your new home.

3. When should I cancel home insurance after selling my home?

When you’ve sold your home, you can cancel your home insurance policy when the sale of the property is complete and you have vacated the property and the other person has taken possession.

You may be tempted to cancel it on the closing date. But, don’t. Wait a few days. Why? Because if you move out after the closing and cause damage, your insurance may cover you. Also, deals can fall through with home buyers, even at the last minute, and you don’t want to be caught in a bad situation without insurance.

If you buy a house while selling your former home, you might have overlapping home insurance coverage for a few days, but this shouldn’t be a financial burden and it will actually help you stay fully insured throughout the home buying process.

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4. Can my homeowners’ insurance be transferred to the new owner?

No. The new homeowner must purchase their own home insurance policy. Home insurance must be in the current owner’s name.

5. Is my stuff still insured while its moving to my new home?

When your belongings are being moved into your new home, they could be damaged in a way that’s not covered by your home insurance policy. For example, fire and theft would probably be covered, but damage from poor handling would not.

If you have any other questions about how to best handle your home insurance during a move, talk to your independent insurance agent and they will be able to guide you.

This article is for informational and suggestion purposes only. If the policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies. For more information about Grange’s home insurance, coverages and discounts, speak with your local independent insurance agent.

- Homelight

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