How Does Moving Affect Your Insurance?
Embarking on a journey to a new home is thrilling, but it can also bring a few surprises, especially when it comes to your insurance. Whether you’re crossing state lines or just moving a few blocks away, a change of address can shake up more than just your furniture. Keep reading to unpack how your move might affect your insurance coverages.
How moving can impact your Auto Insurance
Premium changes
When moving to a new residence, it’s clear that your home and property insurance will be affected, but have you ever thought about how your auto insurance might be impacted? Your location plays a major role in determining your car insurance rate. In densely populated cities, higher risks of accidents, theft, and claims often lead to higher premiums. On the flip side, rural areas aren’t always more affordable—factors like animal collisions, extreme weather, and longer commutes can still drive up your premium.
Coverage requirements
Moving to a new state? Your auto insurance coverages will likely need an update. Different states have varying laws, which means you may need a new policy with new coverages. First, ensure that your current insurance provider operates in your new state, as some insurers only offer business in select states. Key coverages like liability, uninsured/underinsured motorist, and medical payments can vary by state. While comprehensive and collision coverages aren’t usually required, your new location’s risks (like weather or traffic) might influence whether you keep or adjust them. Even if you stay in the same state, a new address can still affect your rates and coverages, so it’s worth checking in with your insurance agent.
Make timely updates
The timeline for updating your auto insurance after a move can vary depending on your state and insurance provider, but it’s best to make updates as soon as possible. Most states require you to update your address with the Department of Motor Vehicles (DMV) within 30 days. Many insurance providers follow a similar timeframe, but it’s important to check with your insurer to confirm their specific policy. Making sure the addresses match on your auto insurance policy and driver’s license can help you avoid potential penalties or coverage issues.
How moving impacts your Homeowners Insurance
Location
A new location almost always comes with new risks, and those risks can directly impact your home insurance premium and coverages. Insurers assess the risk level of a property before offering coverage, and where your home is located plays a role in that evaluation. For example, homes near bodies of water are more vulnerable to flooding and water damage, often requiring a separate flood insurance policy. Areas prone to extreme weather like hurricanes, tornadoes, or hailstorms typically come with higher premiums due to the increased likelihood of damage. Understanding how your new environment will affect your insurance can help you plan ahead and prepare for a potential rate adjustment.
Condition
The value, age, and condition of your new home can influence your home insurance premium. Older homes, especially those with outdated plumbing, electrical systems, or roofing, often carry higher risks, which can translate to increased premiums or limitations in coverage. Unique architectural features or non-standard materials may also require specialized coverage. The roof is another key factor; homes with newer, well-maintained roofs are generally seen as lower risk, which may result in more favorable rates. Making thoughtful upgrades and keeping your home in good shape can go a long way in managing your insurance costs.
Coverage needs
Moving comes with a lot of changes, and your insurance coverages should keep up. Whether you’re upgrading to a larger home that needs more protection or downsizing to something simpler, it’s crucial to make sure every part of your new space is properly covered. If you’ve added high-end kitchen appliances or finally splurged on new furniture, you may need to increase your personal property coverage, especially if your new purchases are more valuable than those in your previous home. Features like a swimming pool or a detached shed may also call for higher personal liability limits or additional coverage for outdoor structures. No matter what your situation is, reviewing and updating your property insurance ensures your new home is protected from day one.
Does insurance cover property damage that occurs during a move?
Your homeowners insurance might offer some protection for personal belongings during a move, but usually only if the damage or loss is caused by a covered peril, such as theft or fire.
For example, if items are stolen from a moving truck, your policy may reimburse you up to your coverage limit. However, damage from poor packing or rough handling likely isn’t covered. Licensed moving companies often carry liability and cargo insurance coverage to protect your belongings in transit. If you’re handling the move yourself, you may be fully responsible for any damage or loss that occurs along the way.
To stay protected, it’s a good idea to hire a reputable, insured moving company and document your belongings with photos or an inventory list before you start moving.
With so much to juggle during a move, your insurance shouldn’t be another moving part to worry about. Whether you’re packing up a single room or settling into your dream home, peace of mind should come with you. Reach out to your local Alfa® agent and make sure your protection moves with you—because arriving at your new home should feel just as secure as it does exciting.
All coverages are subject to deductibles and policy limits. This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance® and/or its product lines and services. An actual policy contains the specific details of the deductibles, coverages, conditions and exclusions. Your Alfa® agent can explain the policy and benefits and answer any questions you may have before you buy.