Moving to a new home is a big milestone that brings with it the excitement of a change of perspective and the start of a new chapter in life. But in the chaos of planning, sorting and packing for a move, it’s important not to forget, this is the impact of moving on your home insurance.
Whether your new location is in the country or in the city, knowing how your move affects your home insurance policy will help protect not only your belongings, but your peace of mind. But movement is not just about physical movement. Turning the house into a home and becoming a shelter for you and your loved ones. To help keep your shelter – and everything inside – protected from the unexpected, here are our home insurance tips to consider before and during your move:
Be selective while searching for your dream home.
- It’s no secret that insurance companies have their own methods of assessing risk and calculating insurance costs based on the relevant data. That’s why it’s so important to take notice of the details that could affect your future Home Insurance premium costs as you’re touring potential homes. To help you make an informed buying decision, be mindful of the top factors that affect your Home Insurance premiums:
- Location: When determining insurance premiums, the claims history of the specific postal code that your home is located in is one of the biggest factors that insurance companies take into account. Higher rates of events like theft, vandalism, and floods will likely result in higher costs to insure. Does your research on the area, talk to your real estate agent, or even chat with the neighbors to help you get a better sense of the neighborhood!
- Replacement Cost: The replacement cost of your home refers to the total amount it would cost, including labor and materials, to rebuild your home if it were to be destroyed. It’s typically calculated using characteristics such as the age, size, features, and foundation type of the home—and it differs from the market value or purchase price. Homes with a higher replacement cost value will typically cost more to insure.
- Heating Sources: Homes with oil heating will see higher Home Insurance costs than homes with gas or electric heating, since leaks from oil tanks can be costly and damaging to your property. Regardless of the type, the age and condition of your home’s heating system will also be considered. Additional heating sources such as wood stoves and fireplaces may be seen as higher risk due to the potential for fire and smoke damage.
- Proximity to Fire Services: The distance from your home to the nearest fire hydrant or fire station can also affect the cost of your Home Insurance. The closer you are to fire services, the less damage your home is predicted to sustain in the event of a fire—which typically results in the lowest premiums.
Take stock of your home inventory.
Moving is the perfect time to organize your things and create a documented home inventory. As you’re packing up your life, make a proper list of your belongings and take photos or videos of your valuables. This will not only help you determine how much Home Insurance coverage you’ll need to be fully protected, but also allow you to keep track of anything that might get lost in the move.
To make the process easier for you, we’ve put together an electronically fillable home inventory checklist here. And while you’re already going through your items, take the time to decide what to keep and what to donate or get rid of—your future self will thank you once settled in your new home, clutter-free!
However, if you own anything of significant value, keep in mind that your Home Insurance policy might not cover valuables over a certain dollar amount, usually around $2,000 or more. Depending on your needs, you may want to insure an additional supplement or a dedicated personal item for something valuable, such as jewelry, designer items, collectibles, medical devices, electronics, sporting goods and others.
Make sure you’re covered during the move.
Moving can be time-consuming, and what happens if you’re not able to move all your things over in one go? The good news is that most Home Insurance policies will cover both your old and new home addresses and their contents for 30 days while you’re in the process of moving. But if you have more stuff than space and you’re renting out a storage unit, check with your broker to see if your belongings will still be covered—especially if you’re planning to have it for an extended period of time.
If you’re hiring a company to help you out, don’t forget to ask for proof of insurance. Moving companies are generally required to have liability coverage in case any of your belongings happen to be damaged in transit.
Consider upgrading your home security.
Protect your new home by installing security features. If you’re on a budget, don’t worry too much about getting the most expensive, state-of-the-art technology—even a simple security camera, automatic door alarm, or window tint that can prevent the wicked. . After all, what better time to improve your home security than when you move to a new home in an unfamiliar area?
Having that layer of protection on hand can make all the difference if your home has access, saving you the financial and emotional burden of theft and the stress of moving. Additionally, you can pay premiums on your home insurance for installing a home security system. Contact your dealer for more information!
Review your insurance policy.
You should review your home insurance policy regularly, but it’s especially important to do so when you plan to move. Whether you’re upgrading from a house to a townhouse or downsizing from a 2-story house to a house, your home insurance changes when you move. It is not easy to transfer your old insurance – depending on the situation, you may need a new insurance! If you’re planning to renovate your new home, make sure your home insurance covers these upgrades as well.
If you’ve already finished a list, now is a good time to fix any gaps in your content. Plus, if you’re a first-time homeowner, you can adjust your home and auto policies to save even more.