Moving Out: How Does Insurance Work?
Are you moving, or is your child heading off to school? Either way, it’s important to know how exactly your homeowner’s insurance covers you and your family when moving. Today, we’ll break it down for you in hopes that you can make a better-informed decision.
Coverage When Moving to a New Home
In most cases, your home insurance policy will cover your new and old home for approximately 30 days. However, you still need to notify your insurer that you are moving out and provide them with any new information regarding your move. This should include any changes to your current situation – a couple moving in together, a divorce, adding new belongings to your policy, and otherwise. The insurance company will review your new situation and make any changes as required.
Before you move yourself, you should first check with your insurance company to see if you have the right coverage in place in the event of a road accident, broken items, or injury on your property. Regarding the rental truck, you can either take out insurance from the rental company or see if you can add extra coverage to your auto insurance. If you’re planning to have friends or family help, you should also check that your home or rental insurance policy covers injuries and broken or damaged items.
Hiring a Moving Company
Even if your homeowner’s insurance plan covers damage on your property, it may not cover damage while in transit or if items are lost or stolen during the move. Plus, not all moving companies include insurance in their price, and some only offer basic liability based on the weight of your belongings. So, if you have damage that goes above this, you could have to pay out of pocket. Before hiring any moving company, it’s wise to ask for a copy of the policy and send it to your insurance broker so they can ensure that you and your belongings are adequately protected through their policy, as well as through your home insurance policy.
The moving company you hire may offer different levels of liability when you sign your moving contract. This is called valuation coverage, and it’s how much the company will reimburse you if something gets lost or damaged during the move. Several factors will play into how much liability the company is willing to take on. If you’ve packed your boxes yourself instead of letting the movers pack them, their liability will go down. Any “Act of God,” such as flooding, will also lower their liability. You should inform your movers about any high-value items that are going in the truck and mark the appropriate boxes as fragile. However, do not indicate what’s in them. Tamper-proof tape is also a good idea.
Also, ensure you take photos of all your belongings before they’re packed in the event they get damaged or stolen. That way, you have proof they were damaged in the move or taken, should you need to file a claim. Of course, you should always perform comprehensive research before hiring a company. Find one with good reviews or hire one that comes recommended by a trusted source. Beware that some try to create their own reviews and pass themselves off as a trustworthy service provider, so carefully scrutinize whichever ones you are considering.
Health Insurance Across Provinces
If you’re moving from one province to another, don’t expect to see your health card from your new province for about three months. That’s no reason to fret though; as a Canadian citizen, you are still entitled to basic health coverage, and your hospital bills will be paid for by the province you just moved from in the interim. However, you should consider getting a private health plan to cover those additional expenses that may not be covered now that you’ve moved. For example, out-of-province ambulance rides may not be covered, and some provinces will only pay for medications that you receive in the hospital, leaving you to foot the bill for prescription drugs.
How Moving Affects Car Insurance
When you move to a new home, make sure you review your car insurance policy. Your premiums may be subject to change based on various factors, such as the length of your commute and where you live. Depending on the situation, you may also be adding a driver or removing a primary or secondary one from your insurance plan, which will also affect the premium. If you’ve obtained custody of the car in a divorce, you may want to remove your ex from the policy because your premiums will drop. If you’re moving a child to a new home, you may want to consider taking them off your insurance plan to lower your premiums as well. They shouldn’t need to be on it unless they plan on driving your car when they return home for visits.
Students Moving Out
If your child is leaving home to attend school, your home insurance policy might protect their belongings, but only up to a maximum dollar amount. It’s important to note that not all insurance policies will cover your child if they are moving out permanently or studying part-time. If your policy does not fully cover your child, it’s wise to get them additional renters’ insurance. This will provide them with liability coverage as well as personal property coverage in the case of fire, theft, and/or vandalism. Depending on your child’s location and unique needs, it’s best to talk to an insurance broker who can find the right protection for them.
No two policies are ever the same. That’s why it’s important to discuss your insurance needs with a certified broker. Unlike agents, brokers don’t work for any specific insurance company. They are unbiased professionals who can help match the right insurance coverage to your exact needs and budget. To learn more and to talk to a registered insurance broker today, contact us at Rowat Insurance.