Moving to a new home is a big step because there are many things to consider. For instance, packing all your belongings, cleaning the property, painting some rooms and even changing your mailing address. However, we are here to talk about the most important step, figuring out what you are going to do with your policy. In this regard, many people ask, can home insurance be transferred to my new home?
The answer is yes, your current home insurance can be transferred to a new property. But, there are certain conditions you should meet. Don’t worry, it is not a complicated process, and below, we will explain everything you need to know. If you have any questions after reading this article, we advise you to call your insurance agent.
Before we look into how you can use your insurance once you move, let’s do a quick review of a typical policy. Remember that the conditions and limits of every homeowner’s insurance can vary depending on your provider. In the same way, the premiums will be different according to your financial situation and the possible risks for your home.
Coverage of a homeowner’s insurance policy
As you might know by now, having homeowner’s insurance is not an option, instead, it is something necessary to protect you in case of peril. When getting the proper policy for your property, you shouldn’t cut corners. It is better to pay a little more every month than not having enough protection.
Even though the policy packages can vary depending on the provider you choose, overall, all of them include the coverages we will explain below. In case you are planning to move to another province, such as BC, and you want to change your insurance company, we have the perfect alternative. In the following link, you can find BC home insurance quotes, as well as a variety of options for other places in Canada.
- Damage to the structure
One thing we can ensure is covered by all insurance companies is damage to the interior and exterior of a property. This includes events such as fires, hurricanes, lightning, vandalism and theft. Whether your house needs some repairs or be built from scratch again, your insurance provider will take care of everything.
Here it will also include all your personal property in case it is destroyed and needs to be replaced. Remember that some items such as jewelry, fine art, and sports equipment might need a special add-on to your insurance.
The personal liability coverage from your homeowner’s insurance policy will protect you if someone gets injured inside your home. This will pay for all the legal fees involved and the necessary medical expenses.
- Additional living expenses
This is a crucial part of the policy since it will ensure you have a place to live if you can’t stay at home while it is being repaired. You will be covered for hotel fees, restaurant meals and even rent, depending on where you decide to live. Keep in mind all insurance companies have daily expense limits.
Remember that if you are purchasing a new property, it should have an insurance policy ready for the closing day. That’s why it is vital to talk to your insurance agent once your offer is accepted.
Transferring Home Insurance
In case you have decided to move to a new home, there are two things you should do before going house hunting. First, find out if your insurance company lets you transfer the current policy to a new property. Usually, this is possible, but it is better to check with them first. Further, be prepared to have some changes to your policy.
When people move from one home to the other, the risks and characteristics of the property are different. That’s why your insurance company will have to calculate your new premiums. Keep in mind the amount you pay every month could be higher depending on where you live. In case you are moving out of the province you are in, there is a big chance you’ll have to change your provider.
When should I cancel the insurance for my old home?
In this regard, several scenarios could be happening, but we will explain the two most common ones. First, we have the homeowners who purchase a new home and transfer the insurance to the other property. However, they are not planning to sell the house yet. In that case, they need to make sure both properties are insured at the same time. Once their old home is sold, they can cancel the policy, but they will have to wait until the new owners move in.
Another thing that could be happening is that you are selling your old home at the same time you are purchasing a new property. Luckily, there are insurance companies that will offer to cover the house you are currently living in until you move to the next one. This means both home insurance policies will be overlapping for a while. Even though this might be a little expensive, it is better to have coverage at all times.
Protection for belongings in transit
Many homeowners think about the insurance policy for their new place. But they forget to ask about the protection for all their belongings while moving. Most insurance companies will offer you coverage in this case, but only if you are using a professional moving company. If you are planning to ask for some help from friends and family, you will have to pay for any damages. However, this can vary depending on the provider. That’s why it is vital to talk to the company first.
Re-evaluating your policy
Even though the insurance policy could be transferred once you move to a new home, you should know this is not mandatory. As a homeowner, you can decide which home insurance is better for your property. Even when that means changing your current provider. That’s why, if you decide to move, we will advise you to ask for quotes from different providers and compare them to the policy you have in place.