Homeowners insurance coverage during a move

Americans are moving.

Across the country, it seems like the moment a for sale sign goes up, there's a sold sign that quickly follows. While your local housing market may be heating up or cooling off, Americans are on the move. They may be selling a home to purchase a new home. Or they may be first-time buyers moving from their apartments or rented homes. The U.S. Census Bureau reports that since 2017 nearly 10% of Americans move each year.

With every move, comes planning, packing, hiring movers and seeing which friend has a truck

But what about your personal property and how you protect it? Homeowners insurance could be an afterthought in the moving process, but it shouldn't be.

Your personal property may or may not be covered for losses during a move unless you take steps with your insurance policies or have the right coverage in place.

Your property goes through a few stages during a move. Here are several common scenarios we look at to see how your policy could provide coverage during the pre-move stage, when your property's in transit, and after you move.

Selling one home and buying another

While you're packing your possessions, losses that occur may be covered by your homeowners insurance. While your policy at your old home is still in force, your coverage should still work the way you expect. If you experience a loss, deductibles may apply but your policy will likely cover your personal property while it's still at your old home.

As part of your new home's closing process, you'll get a homeowners insurance policy for your new address. Coverage should start on the day you take ownership of your new home, but you may be issued a binder, which is a temporary policy that provides evidence of insurance, explaining all the details of your policy prior to closing.

In some moves, the stars align and you're able to move out of your old house and into your new home at relatively the same time. With other moves, however, you may have your property in a storage container or moving truck, or in possession of a moving company.

This is where knowing what your insurance policy covers and in what situations is critical. If your policy ends on the date that you move out, your coverage stops.

Talk with your insurance company about the best time for your policy to terminate. Some companies will allow you to keep your old policy in force for some time after you move out to provide personal property protection.

Some policies offer coverage that follows your personal property wherever it goes. However, coverage may be limited to covered losses like theft or fire damage. If your property's on a moving truck that gets into an accident, your homeowners policy may cover your belongings. Some policies may apply lower coverage limits during transportation, so it's important to review your policy to see how things will work financially if a loss should happen.

If your stuff breaks during the move due to how it was packed or handled, your homeowners policy may not cover that loss. But if you're using a moving company, they may offer specific coverage to protect you from losses due to breakage.

Once your move's complete, your new homeowners insurance policy will be your primary source of property coverage. Old coverages are terminated, and you can breathe a sigh of relief that the move is over.

Selling your home and moving to a rental

This scenario is similar to the one above, but instead of a new homeowners policy, you should be getting a renters insurance policy. Renters insurance will take over to protect your personal belongings.

Renters policies typically also offer coverage for your personal property while in transit or storage. You'll want to make sure your coverage is in force prior to your homeowners policy's termination so you can avoid any gaps in coverage.

Make sure you review extra coverage or features you may need for items like electronics or collectibles. If you have valuables like jewelry, musical instruments or fine art, it may be beneficial to consider a Valuable Personal Property policy.

Moving from a rental and buying a home

Let's say you're all packed up, you've got your personal property on a moving truck, and you have a final walkthrough in the morning. If someone breaks into the moving truck overnight, your renters policy would likely provide coverage for your property.

Keep your policy in force until your homeowners policy is issued. If you're making a longer move, you'll likely have your personal property in storage or on the moving truck for some time.

Take action.

With any big life event like changing jobs or moving across the country, it's important to review and update your insurance so it adequately covers your financial situation.

Moving is already stressful, so make sure the unexpected doesn't turn into a financial disaster. Talk with a specialist or review your policies online, and make sure you have the right coverage in place for your move.