Does Homeowner’s Insurance Cover Moving?
Ten percent of the U.S. population moves into a new home each year. If you own a home, you might be wondering if your policy covers the shift over to your new residence. The answer to this question is often different for individual policy.
You may want to know if your coverage still applies to your personal possessions, which will be loaded into a truck and taken to your new location. In this instance, coverage doesn’t specify moving but does list certain perils, including fire, theft and an accident in transport. What should you consider?
Theft and Damage
Your homeowner’s insurance won’t cover moving-specific damage – for instance, an item gets dented in transport – but may reimburse you, should the moving company take off with your possessions. Also, if you’re transporting highly valuable or specialty items, having an extension to your policy for electronics, musical instruments or artwork may offer better reimbursement for repairs or a replacement.
While coverage only extends to risks listed in your policy, your mover is also required to have two types of liability insurance. However, coverage can differ in the following ways:
- Your items are typically covered by weight – not actual costs. Moving companies assume liability for up to 60 cents per pound.
- Full Value Protection is the default offered by most moving companies. Should something happen in transport, they’re required to repair it, replace it or give you a cash settlement on par with the item’s market value.
- You’ll be expected to document all expensive items – anything worth over $100 per pound – beforehand. Otherwise, your mover’s policy typically won’t pay out anything more.
- The mover’s policy doesn’t cover everything, including boxes you packed yourself, hazardous materials, open boxes, damaged wiring inside electronics, certain materials and musical instruments.
Always be sure to check the quality of a box and its contents before you place it on a truck.
Using Your Policy
In the instances your policy will cover you, consider the following factors:
- Your deductible still applies.
- Your policy limits are also the same, unless it specifies a lower one when items are away from your premises or in transport. If you’re planning a move, consider having these limits temporarily raised.
- For a smooth transition into your new residence, your policy lasts for 30 days at your new address. This period gives you time to get new coverage or adjust your existing policy to your new dwelling.
- What if you’re staying in an apartment between moves? While the 30-day period still applies, consider taking out a temporary tenant’s policy to carry you over.
Are you getting ready for a move? Make sure you’ve got enough homeowner’s insurance, as well as sufficient specialty coverage before making the move. To review your policy with an Insurance professional, give us a call at 203.729.5261.