Homeinsurance when you have two addresses
It's common to tacklea move gradually, starting a few days or weeks before the official movingdate. It gives you a chance to do a little cleaning, add a fresh lick of paintand make a start on moving those boxes. But will your belongings be covered atyour new place, or do you need to notify your insurer?
The first thing you need to know is that homeinsurance policies will normally cover both your old and new home for 30 days.As soon as you move your first box from address A to address B, your belongingsare automatically covered at both addresses.
However, you must still tell your insurerthat you're moving. You should notify them 30 to 60 days before your plannedmoving date. This is because your insurance is closely linked to thecharacteristics of your home. A new home can often mean a change in situation,too: a couple moving in together and making new purchases, or, conversely,fewer insureds and belongings. Your insurance will be transferred to your newhome and updated to take account of any changes. You will still keep the samepolicy, so there's no need to start over.
Your insurance company will analyze yournew situation and update your coverage accordingly. If your belongings will bedivided between two properties for more than 30 days, make sure you're coveredby contacting your insurer. The insurer will modify the terms of your insurancepolicy, or sometimes simply add a note to your file.
What if you're purchasing a new home? Youmight sign at the notary two months before moving in and only sell your currenthome three months later. If you find yourself responsible for two properties atthe same time, it's important to update your home insurance policy to reflectthis situation.
Ado-it-yourself move
So you've decided to move your belongingsyourself, inviting your friends to help out with the promise of a celebratorybarbecue when it's all over. You're sure to save money on moving costs, butwill you be covered if something goes wrong?
First off, you'll need to rent a truck. Howare you going to insure it? You have two main choices: take out the insuranceoffered by the rental company, or call your auto insurer and add endorsem*nt 27 toyour policy.
This provides coverage for rented orborrowed vehicles. You can decide on the deductible and amount of coverage withyour insurer, but it must cover the value of the rental truck.
If something happens to the truck, you canclaim on your auto insurance as if it were your own vehicle.
If you don't have a lot of stuff to moveand a trailer is enough, make sure you havethe coverage you need.
Now, what happens if one of your friendsfalls down the stairs and is injured while helping you move? This is where yourcivilliability coverage comes into play. And what if he drops your TV when hefalls? It all depends on what kind of coverage you have.
Do you have allrisks or named perils coverage? Your smashed TV will be covered if you havean all risks policy, but not if you have a named perils policy. The sameapplies if you accidentally spill a gallon of paint on your sofa; whetheryou're covered or not depends on your policy. To find out what coverage youhave, refer to your insurance policy or, better yet, contact your insurer.
Movingcompanies and insurance
So you've decided to spare your friends,don't want to deal with the hassle of moving or simply prefer to useprofessionals... Moving companies are there to make your move as stress-free aspossible.
Depending on the options you choose, yourmovers can simply transport your belongings from A to B, or they can takecharge of your packing too, leaving you with almost nothing to do.
The first step is to choose theright moving company. By following a few simple rules, you can prevent yourmove from turning into a nightmare. Obviously, one of the rules is to find outwhat insurance coverage the company has.
Some movers offer basic coverage based on theweight of your belongings. In the event of loss ordamage, a mover's basicliability is $0.60 per pound. So whether it's your TV or stamp collectionthat is damaged, the coverage will be the same (even if the value of yourstamps is hard to measure in weight).
Sometimes you can opt for additionalcoverage. This will cover you per pound, depending on the mover. You can also choose a higher amount, still based on weight. However, the coverage cannot exceed the actual value of your belongings.
For this insurance to apply, you have tofollow certain rules, which can vary from one mover to another. Some moverswill not insure anything that you have packed yourself, others will provide youwith packing instructions. Ready-to-assemble furniture (of the Swedish big-boxstore type) is not usually covered unless it is disassembled.
Ask for a copy of the insurance policiesbefore choosing your moving company. On moving day, inspect the condition ofyour belongings with the mover before and after the move, and make sure youagree on how many boxes there are, to be sure that nothing is lost en route.
In the event of damage, themoving company's insurance takes priority, but your home insurance comes into play if the damage is beyond the scope of the mover's coverage. The normal terms of your insurance policy apply.
Are your planning a move soon? Don't wasteany time. Contact your insurer to find out about your coverage under yourcurrent policy and any changes you might need to move with peace of mind.
