August is one of the busiest months for buying and selling a house. A lot of families want to close on a new place and get settled in before the school year starts. With all the boxes, moving trucks, and closing paperwork, it’s easy to forget one thing that really matters: your home insurance.
Your policy doesn’t just follow you to a new address on its own. Here’s what homebuyers and sellers should check before, during, and after a move, so you’re not stuck with a gap in coverage right when you need it most.
Your Old Policy Doesn’t Just Transfer
A lot of people assume their home insurance moves with them automatically. It doesn’t. If you’re selling your current home and buying a new one, you’ll usually need to set up new coverage for the new place and cancel the old policy once the sale closes, not before. If you cancel too early, you could end up with no coverage on a house you technically still own.
Common Mistakes Homeowners Make When Moving
- Cancelling the old policy before the sale actually closes.
- Assuming the new house is automatically covered the day you get the keys.
- Forgetting that your mortgage lender usually requires proof of insurance before closing.
- Not updating the coverage amount to match what the new home is actually worth.
- Keeping the same personal property coverage even though you bought new furniture or appliances.
What Buyers Should Review Before Closing
A few weeks before your closing date is the right time to call your agent, not the day before. Here’s what to look at:
- Does the coverage amount match the value of the new home?
- Are there any new risks, like a pool, an older roof, or a different type of construction?
- Does your personal property coverage still make sense after any new purchases?
- Do you need extra liability coverage if the new home has more space or more visitors?
Don’t Forget the Move Itself
Your stuff is at some risk during the actual move too, whether it’s sitting in a moving truck, a storage unit, or piled up in an empty living room. If you’re hiring movers, ask about their liability coverage in case something gets damaged or lost. It’s also smart to know whether your personal property coverage still applies to your things while they’re in transit, not just once they’re inside your new home.
A Few Questions We Get a Lot
Do I need to call my insurance company right when I list my house? Not right away, but you should reach out once you’re getting close to a sale date, so your new policy is ready before closing day.
What if this is my first home and I’ve only ever rented? Your renters insurance covered your stuff, but it didn’t cover the building itself. A homeowners policy is a different kind of coverage, so it’s worth a full conversation instead of assuming it works the same way.
What if I’m just moving within the same town or city? It still matters. A different neighborhood, a different age of home, or a different size can all change what coverage you actually need.
If you’re buying, selling, or moving this season, don’t leave your home insurance for the last minute. Contact The Insurance Alliance today and we’ll help you get the right coverage lined up for your move in, so closing day goes smoothly.
