Whether you are upsizing, downsizing, moving across Kansas or across the country this summer, I urge Kansans to review homeowners and renters insurance policies before the first box is packed.
Below are some tips for a safe and insured move, courtesy of the Kansas Insurance Department (KID) and the National Association of Insurance Commissioners.
Call your agent. Not all insurance companies or agents are licensed to sell insurance in all states, so moving out of state could mean big changes in your homeowners, renters or auto insurance policy. Talk with your agent to see if a current policy can be transferred to the address and how long you need to leave your current policy in place.
Even just moving across town can affect the cost of a policy. Your agent may need to know details about the new home, such as its age, construction material, type of roof, square footage and interior finishes. The agent will also need the details of your mortgage lender.
Talk to your movers. If you hire a moving company, expect to be asked about insurance. Homeowners and renters insurance will likely provide limited coverage for household belongings in transit. The policy deductible will apply to any claim made for a loss on these items, so check your deductible amount and how it is applied before the move.
Moving companies generally offer basic insurance coverage. The amount is based on the weight of the items moved and federal (if moving state-to-state) or state (if moving in-state) laws.
The moving company may offer additional coverage for a fee. Coverage for a lump sum value may be one option. This coverage is typically based on the value of items rather than the weight. You must know the value of the shipment and make a declaration in writing on your receipt (often referred to as a “bill of lading”). Coverage for full value protection may also be offered.
Finally, if the moving company will be towing the family car, your personal auto insurance policy should provide coverage for liability while in transit.
Know the do-it-yourself provisions. If friends and family have volunteered with the relocation, you will likely need to rent a truck. Some personal auto policies may provide coverage for the driver’s liability in a rented truck, but many do not. Review your policy closely for coverage and limitations before renting. Pay particular attention to any exclusions based on the size of the vehicle.
If your personal auto policy does not provide coverage, you may have the option to purchase protection coverage as part of the rental agreement. There is generally a limit to how much the supplemental coverage will pay, and, KID does not regulate that type of protection.
A rental truck company may also offer protection coverage on your belongings. The coverage will be similar to what a moving company will offer. If you plan to use your own vehicle for transporting property, check with your agent on your limits while any property is in your vehicle.
Change gears when becoming a landlord. Renting out a home is becoming a popular option to selling. However, keep in mind that when the house becomes a rental property it has gone from being a residence to a place of business.
A landlord insurance policy (sometimes called a “dwelling fire policy” or a “special perils policy”) covers the house itself, other structures on the property, the owner’s possessions (like a washer and dryer left for tenant’s use), lost rental income if the house becomes uninhabitable, and some liability protection. Tenant possessions are not covered in landlord insurance policies.
Expect to pay between 10-25 percent more per year than you paid for your homeowners policy. Policies for short-term rental and long-term rental will likely differ in price.
Fill out a home inventory. Moving is a good time to take a home inventory or to update your existing inventory. As contents of the new home are unpacked, take photos room by room and make a list of the belongings. Use the Kansas Insurance Department’s “Personal Home Inventory” booklet, which can be downloaded at www.ksinsurance.org.
Consumers can also create an electronic home inventory thanks to a smartphone application from the National Association of Insurance Commissioners. The free myHOMEScr.APP.book app lets users quickly photograph and capture images, descriptions, bar codes and serial numbers. Then it stores them electronically for safekeeping.
Insurance can be confusing – but by understanding the choices you can make educated decisions about your property insurance needs. For more information about homeowners or renters insurance, get the KID publication, “Auto and Homeowners Insurance,” which you can download or order from our website.
Consumers can also go to www.InsureUonline.org , choose the life stage that best fits their life situations and see what insurance coverage could be best for them.