Moving can be an exciting but also hectic time. “How does moving affect your home insurance?” is likely the last thing on your mind. You may be moving to another area of Western Kentucky or possibly across state lines. No matter where you move, you can be sure that your insurance company needs to be in the loop as you go through this transition.
How does moving within the same state affect my home insurance?
You may think that moving across state will not affect your insurance but it actually will. Here’s what you need to know.
- Home insurance is specific to person AND location. The insurance policy cannot be transferred from one location to another even when within the same state (with the exception of renter’s insurance). Your agent will need to start working on a new policy for the home you will be purchasing.
- Your agent may be limited in the areas of the state they are able to write insurance. While an agent is typically licensed to write insurance per state, the insurance company itself may have eligible and ineligible territories. You don’t want to wait until the last minute to find out that your agent doesn’t have an option. This is rare but not impossible. An independent agency, like Bradshaw & Weil, Inc.,will be able to make arrangements with the other carriers they represent and avoid any potential road blocks to ensure your transition is smooth.
How does moving across state lines affect my home insurance?
Moving across state lines can bring additional challenges
- We mentioned previously that it is uncommon but possible that an agent isn’t able to write policies in certain areas of a state due to insurance company restrictions. It would not be uncommon that your agent can’t write business at all in the state you are moving to. Most independent agencies are licensed in their resident state and many surrounding states. However, a cross-country move could easily put you out of your agent’s territory. This would be an unpleasant surprise if you were expecting to work with your agent and current home insurance company after your move. You should always call your agent first to let them know your plans. Hopefully they can work with you through the transition. If not, then at least you have allotted yourself time to make a plan.
- Insurance premiums vary from state to state. Taxes and the risk associated with the area can be significantly different from your current location. Knowing this ahead of time allows you to budget and plan as you purchase your new home.
Wrapping up the process
Once you are settled into your new home, you will have several lose ends to tie.
- Do you still own your previous home? You will need to establish a plan for your previous home if you did not sell it before you moved. A criteria of homeowner’s insurance policy is that the residence is owner occupied. If you still own your previous home but are no longer living in it then you will need to look at a different type of insurance policy. The type of policy will depend on whether or not the residence will be vacant, rented, or for sale.
- What do you do when you sell your home? Whether you sell your home before or after your move, you will need to contact the insurance agent to sign and complete a cancellation request. If your agent did not end up writing the insurance on your new home then you will need to ensure they have your updated mailing address for any possible refund due.
Are you looking at moving into the area? Our agency is licensed to write in Kentucky, Illinois and Tennessee. Contact us today for a quote!