What To Know About Insurance Coverage When You Move

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Moving can be a stressful event, but it is also good time to update your insurance needs and maybe save a little cash. Whether your new home or apartment is in another state or located just across town, you should not only communicate your upcoming changes with your current agent, but also investigate alternatives.

The more alternative quotes you receive for your auto and home insurance, the better chance you have to save.

The Possible Need To Change Agents

If you prefer to have a local agent, this may be something to consider if you're moving out of state. Some companies also treat coverage in certain geographies differently, preferring to focus on specific states. It's also important to see if your current insurance company is licensed in your new area.

How Your Move Impacts Your Car Insurance

Many companies quote auto insurance down to the zip code, so a move as small as 15 to 20 miles can make a difference in your rate and coverage. Some areas may also require higher rates due depending on their weather patterns, such as frequent incidents of hail.

Location, Location, Location -- Re--evaluating Your Home or Renter's Policy

If your new home takes you from a small town to the big city, your rate can increase due to higher theft rates and incidents of congestion. Depending on where you plan to live, you may need to add flood or earthquake coverage to your policy. Or if you're moving away from those areas and your agent lowers your premium, you may get an even better rate and coverage from a competitor specializing in coverage within your new town.

Have Adequate Liability Coverage for a Move

When it comes to the actual move, it's important to understand exactly how much liability coverage your moving company provides for property loss or damage. Then take a complete inventory of everything you own to assess the value of your household goods. While adding your video camera to the list, use it to document all your processions.

If the liability coverage included in your moving contract does match the value of what you own, speak to your home insurance agent. Most policies cover incidents of damage or theft in transit, but they can be limited to 10 percent of the property's value. You have the option to also purchase "goods in transit" insurance from the moving company, but many prefer to simply add this to an existing policy or a new homeowner's insurance policy.

Getting ready to move? Then now is the right time to research your auto and home insurance options.