Starting Over in a New City: Insurance Considerations

Starting Over in a New City: Insurance Considerations
Starting Over in a New City: Insurance Considerations
Starting Over in a New City: Insurance Considerations
Starting Over in a New City: Insurance Considerations

Moving to a new city can be an exciting activity, but there is also a lot to do, and it can be stressful and you need all the help to make it easier. Although insurance may not be at the top of your mind, it is crucial and should be on your to-do list. You may need to amend some of your policies because insurance terms vary from one location to another.

Would you like to know more about how moving to a new city affects your insurance? Read on and learn about crucial insurance considerations that should be at the top of your mind.

First, Talk to Your Agent

Although they are crucial, insurance agents seldom feature among the top people to inform when planning to start over in a new city. But they are helpful and can save you from a load of stress. For example, if you have a homeowners policy, you should talk to your agent during the early stages of your plans.

Insurance companies began pulling out of natural disaster-prone areas. If you plan to move to such a location, the move could significantly affect your policy. Finding an alternative and affordable homeowners coverage could be a challenge.

Moving cities also affects other insurance policies like your car coverage and health insurance. Also plan to take the appropriate insurance coverage for moving. Here’s more on the insurance considerations when starting over in a new city.

Moving Cities Affects Your Car Insurance

Have you ever wondered why car insurance shopping sites request your zip code before generating an estimate quote? Not only do they want to know you better, but also customize the response according to car insurance requirements specific to the location.

Moving to a new city can either trigger a hike or a reduction in the cost of your car insurance. For example, the premium could increase if you move from a low-traffic area to a high-traffic area. You could also need to find a new carrier because most car insurance companies don’t cover all states.

Insurance companies typically give clients between 30 and 90 days to update their coverage when they move. But it is better to be proactive and get your policy updated to avoid complications.

As you discuss with your agent, you will notice that each state has unique licensing and car insurance requirements, affecting your premiums. For example, some states allow 15-year-old teens to drive with a learner’s permit. In other states, a driver must be at least 16 years old.

If you have a teen who drives your car, depending on the state rules, you will need to adjust your coverage before they can hit the road. If the move triggers a premium increase, your agent can help you take steps to reduce the rate.

Talk to Your Homeowner Insurance Provider About Your Plans

If you already have homeowners insurance coverage, you can talk with your agent and get help in transferring the policy to your new dwelling. But several factors will affect the coverage and costs. These factors include

  • The location – Certain locations could trigger a hike while other areas could cause a reduction. For example, areas prone to natural calamities attract higher rates.
  • The structure – If the new home is new or built using expensive materials, the rates could go up.
  • Occupancy of the home – Will the home be your primary residence, a vacation home, or will you put it up for rent? Depending on the occupancy status

Moving to a New City Will Also Affect Your Health Coverage

Starting over in a new city will also likely mean that you change health coverage. Like car insurance companies, most health insurance carriers do not cover all states, and your coverage will terminate upon the move.

You will have to sign up for a new health insurance plan unless you have employer-provided health coverage or you opt to stick with the same coverage under the COBRA program. But it is an expensive option, and shifting insurance could be better.

Speaking with your agent in time will help you get a better deal and take some stress out of the big move.

Get the Correct Coverage When Moving

Before moving, ensure you use the correct coverage to protect your belongings. A homeowners coverage or renter’s policy protects your personal items at home. But it does not cover the items when being handled by movers or when they are in transit. Consider signing up for the following insurance options before the move:

  • Trip transit insurance – to cover your personal items and protect against risks such as theft and fire.
  • Special perils contents coverage – to cover breakage of your personal property. However, it does not include fragile items.
  • A floater policy protects high-value and fragile items such as jewelry, collectibles, china, vases, fine art, etc.
  • Storage insurance is crucial if you need temporary storage for some of your property before or after moving homes.

Manage the Stress

Starting over in a new city is an exciting but stressful venture. These insurance considerations will help you have peace of mind during the move and take away some of the stress. Get in touch with your agent(s). They are crucial and will help you make important decisions.

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