When moving to another state, it’s essential to understand how home insurance works. Home insurance is tied to the property, so a new policy is needed when moving to a new home. Factors like the home’s location, age, construction materials, and weather risks significantly impact the cost of insurance for the new home.
Understanding Home Insurance Costs
Homeowners insurance costs can vary by thousands of dollars depending on where you move. For example, Florida has an average annual premium of $8,471, while New Jersey averages $1,449. It’s crucial to compare home insurance rates as part of your budget when preparing to move.
According to Mark Friedlander, senior director of media relations at the Insurance Information Institute (Triple-I), many consumers assume their risks will be similar in a new location, while also assuming their cost of home insurance will be similar to what they paid at their previous location. However, the risk factors may be significantly different, leading to either higher or lower costs of coverage.
Key Takeaways
When moving to another state, you need to buy a new homeowners insurance policy. Home insurance is tied to the house, with rates and coverage based on location and property specifics. It’s not possible to transfer a home insurance policy from one location to another.
You may be able to stay with your insurer if they offer coverage in your new state, but it will be a new policy. The coverages you need may also vary by location and property risk. You’ll need flood insurance, for example, if your new home is near the coast or in another high-risk area, and you may need additional liability coverage if your new home has a pool.
Keep insurance coverage on your old home until it sells, and have a new insurance policy in place before closing on your new home. Personal property in transition is covered by home insurance unless you hire professional movers, in which case the company provides coverage.
Additional Coverage
You may need flood, windstorm, or earthquake insurance in addition to a standard home insurance policy in some states. Standard home insurance does not cover floods. If your new home is in a floodplain, or if you are moving to a state with a high flood risk, ask about flood risk before you close.
According to Friedlander, all areas of the U.S. are prone to flooding, and no location is immune to this escalating hazard, which is typically not covered by standard home insurance. Flood insurance is not just for coastal zones prone to storm surge. Inland flooding has become a major hazard in parts of the country.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
