Moving to a new home marks an exciting life transition — but amid the packing boxes and change-of-address forms, there's one critical item that needs special attention: home insurance. Understanding how to transfer home insurance when moving will help you make sure your most valuable assets remain protected every step of the way.
Let's explore what happens to your insurance coverage during a move and how to navigate this transition smoothly.
Does Home Insurance Transfer When You Sell Your House?
One of the most common misconceptions about home insurance is that policies automatically follow you to your new address.
Home insurance policies are tied to specific properties, not to the people who own them. Your current policy covers the physical structure and address listed on your declarations page. When you sell that property, the policy doesn't automatically transfer to your new home.
This means that when your home sale closes, your existing policy will need to be either canceled or non-renewed. Understanding homeowners insurance when selling a house is crucial to maintaining continuous coverage.
The new buyers will need to secure their own home insurance policy. Similarly, you will need a new policy for your new residence. This isn't simply a matter of changing the address on your existing paperwork, though. You’ll need to establish an entirely new insurance contract for your new home.
If your current house has a home warranty, this is not the same as insurance. You can own certain assets that are covered by a specific transferable warranty.
For example, if you purchase new windows that come with their own manufacturer’s warranty, and it’s transferable, then that warranty can be transferred to the new owners. For items such as windows, a new roof, or appliances, you’ll want to check their individual warranties and see if they can be transferred..
Before the Move
Do You Need Homeowners Insurance for Two Homes at Once?
During the transition period when you own both your old and new homes, you'll likely need two separate insurance policies. This overlapping coverage ensures that both properties remain protected until the sale of your original home is finalized.
Many homeowners worry about paying for two policies simultaneously, but the alternative — having an uninsured property — creates far greater financial risk. Even a single day without coverage could leave you vulnerable to significant financial losses if an unexpected event occurs.
To manage this transition period efficiently:
- Coordinate your closing dates as closely as possible
- Consider short-term policies if available
- Keep detailed records of when each policy activates and terminates
Do You Need Homeowners Insurance Before Closing?
Most mortgage lenders require proof of insurance before they finalize your loan. This requirement exists to protect their financial interest in your property. Without insurance in place, your closing could be delayed or even canceled.
Aim to secure your new policy about 30 days before your scheduled closing date. This provides ample time to:
- Compare quotes from different insurers
- Select appropriate coverage levels
- Provide proof of insurance to your mortgage lender
- Address any questions or concerns that might arise
Home insurance before closing is an essential step in protecting your investment from the first day of ownership. If you have any questions about the process, please don’t hesitate to call us and speak with one of our insurance agents.
When to Contact Your Insurance Company
Effective communication with your insurance provider is key for a seamless transition. Notify your current insurer about your upcoming move as soon as you have a firm closing date. They'll need specific details, including:
- Your new address
- Closing date for your current home
- Closing date for your new home
- Whether you'll need a new policy or plan to switch providers
If you have a mortgage on your current home, your lender needs to be informed about your insurance plans as well, especially if they've been paying premiums through an escrow account.
Reviewing Your New Home's Insurance Needs
Your new residence might require different coverage than your current home. When transferring home insurance to a new property, consider these factors:
- Location (flood zones, wildfire risk, crime rates)
- Home size and construction materials
- Special features and/or home improvements
- Replacement cost versus actual cash value coverage
- Additional endorsements for high-value items
A home in a flood-prone area might require separate flood insurance, while a larger property may need higher liability limits. Each move presents an opportunity to reassess your coverage needsr based on your new circumstances.
Understanding Policy Cancellation Terms
Before changing home insurance providers or canceling your existing policy, review the termination provisions. Some policies include cancellation fees if coverage is terminated before the term expires, while others provide prorated refunds for unused premium payments.
Request written confirmation of your cancellation date to avoid any misunderstandings about when your coverage ends. This documentation can prove invaluable if coverage questions arise during or after your move.
During the Move
Is Homeowners Insurance Required at Closing?
For most real estate transactions involving a mortgage, proof of insurance is a non-negotiable requirement at closing. Lenders typically want verification that the property will be insured from the moment ownership transfers.
As a seller, maintain your existing coverage until ownership officially changes hands, usually at the closing table. As a buyer, your new policy should take effect on the closing date, ensuring protection from the start.
Without proper insurance documentation, closing delays are almost inevitable, as lenders won't finalize a mortgage without confirmation that their investment is protected. This is why getting home insurance before closing is a critical step in the homebuying process.
Coordinating Coverage for Moving Day
Your belongings face unique risks during the moving process. Your existing homeowner’s policy will likely cover your personal property stored in your new home for up to 30 days after you’ve begun to move. After that, your new home’s insurance policy would take over. However, it’s important to remember that your deductible still applies in the unfortunate event of a claim.
Professional moving companies typically offer valuation coverage for items in their care; however, this is not the same as insurance. Review your policy details carefully and consider supplemental moving insurance for valuable items if necessary.
If you're using a moving company, verify their insurance coverage and consider additional protection for high-value items. If you're moving yourself, check whether your auto insurance covers rental trucks or if you need separate coverage.
After the Move
Can You Cancel Home Insurance After Selling?
Once the sale of your previous home finalizes, you should cancel your old insurance policy. However, timing is critical—never cancel before the closing is complete and ownership has officially transferred.
To properly cancel your policy:
- Wait until after the closing documents are signed.
- Contact your insurance provider with the exact cancellation date.
- Request written confirmation of cancellation.
- Keep records of any refunds received.
If you're transferring your home insurance to a new property with the same company, they will guide you through canceling the old policy and activating the new one. If you’re a current Wawanesa member, we’ll help you prevent any gaps in coverage during this critical time — and you may qualify for loyalty discounts!
What Happens to Escrowed Home Insurance Payments?
If your mortgage lender has been collecting insurance payments through an escrow account, you may be entitled to a refund when you sell your home. You can ask your lender to perform an escrow analysis after the sale closes. Any excess funds, including prepaid insurance premiums, will be refunded.
These refunded premiums can help offset the cost of your new home insurance policy. Keep in mind that the timing of escrow refunds can vary, so budget for your new insurance premiums without relying on immediate reimbursement.
Setting Up Ongoing Coverage for Your New Home
Once you've successfully moved and established your new insurance policy, take these steps to ensure ongoing protection:
- Set up automatic payments to prevent accidental lapses.
- Schedule a six-month review to reassess coverage needs after settling in.
- Consider bundling with auto insurance for potential discounts.
- Document valuable possessions with photos and inventory lists.
Your insurance needs may evolve as you customize your new home, so maintaining open communication with your provider ensures your coverage keeps pace with your changing circumstances.
Stay Covered at Every Stage of Your Move
When you know how to transfer home insurance when moving properly, you can avoid coverage gaps while ensuring your most valuable assets remain protected.
Remember that each move represents an opportunity to reassess your insurance needs and secure better coverage or rates.
Reach out to us if you have questions about your current policy or want to establish one for your new home. A helpful Wawanesa agent will be happy to review all the details with you and ensure you’re protected every step of the way.
FAQs
What if the buyer backs out — can I keep my policy?
Yes, if a sale falls through, your existing policy remains in effect for your current home. Simply notify your insurer that your plans have changed.
Does a house have to be insured to sell?
While there's no legal requirement that a house be insured to sell, most mortgage lenders require buyers to have insurance in place before closing. As a seller, maintaining insurance until closing protects your investment.
What happens if I rent out my old home after moving?
If you decide to rent your property instead of selling, you'll need to convert your homeowners policy to a landlord or dwelling policy, as standard homeowners insurance doesn't cover rental activities.
What happens if my closing date is delayed — will I still be covered?
If your closing date changes, contact both insurance companies immediately. Your existing policy should continue protecting your current home, while your new policy's effective date can usually be adjusted to match the new closing date.
Does home insurance cover staging or open house damage?
Standard homeowners policies typically cover damage to your property during showings or open houses, but there may be limitations for business-related
