Moving into a new home is an exciting time, but it’s also a very busy time. While you start checking off the boxes on your moving to-do list, it’s important to remember that your home insurance has to be taken care of well before your move-in date. Take a look at the moving and home insurance frequently asked questions below so that you can look forward to making memories in your new home, confident that you have the coverage you need.
What happens to my home insurance policy when I move?
An unfortunate fact of moving is that your home insurance policy doesn’t necessarily move with you. Home insurance policies are calculated to provide an appropriate level of coverage unique to each house, and are based on a variety of specific factors – including location, the home’s replacement cost, types of utilities, extra amenities, and so on. In short, when you move into a new home in Ontario you will need to call your insurance provider to update your existing insurance policy. If you’re planning on moving outside of Ontario, you will need to purchase a new policy altogether.
What do I need to do about my home insurance before moving?
As soon as you confirm the purchase of your new home you should contact your insurance broker, letting them know when you will be handing over ownership of your current home and when you will be taking on ownership of your new home. Your broker will help you manage your insurance transition and ensure that you are adequately covered at all stages of your move. They will also review your current policy and advise you of any premium increase or decrease as a result of the move. If you are paying monthly, your broker will review your revised billing schedule with you and discuss your payment options.
Do I need to stay with the same insurer that I had for my previous home insurance policy?
While many people think of moving as a good time to shop around for new policies, it’s important to be aware that if you cancel your insurance policy midterm there will likely be a cancellation penalty that you will have to pay. Insurance is a contract, after all. It’s generally best practice to stay with the same insurance provider before and after your move to ease your transition and avoid a cancellation fee. You can use your move as an opportunity to discuss your coverage options with your insurance broker while you work on updating your policy for the new home.
Am I covered while moving?
Some insurance policies will cover your insured location and personal property while you’re in transit, up to 30 days or until the policy expires. Check with your insurance broker to see if this is applicable to your policy.
If you’re using a professional moving company, ensure that they have their own insurance. Most home insurance policies won’t cover marring, scratching, abrasions, or chipping – so you’ll want to be sure the moving company you choose has an insurance plan that would cover this.
If you need to store some of your possessions, contact your insurance broker to find out if your policy will cover items while in storage – not all policies do.
It’s also a good idea to take inventory of the possessions you have while you are moving, so you can make note of the items that should be added to your home insurance policy.
Putting your home on the market this season? Be sure to keep your insurance broker in the loop. Not only does your broker need to be informed when you move, but they can help answer questions about insuring your new home. Contact your OTIP insurance broker at 1-833-494-0090 to discuss your coverage options or call 1-888-892-4935 to get a quote for home insurance.