Moving into a new home is an exciting time for all parties involved. Whether you are moving from an apartment, relocating, or upgrading, or downsizing your existing home, it’s likely that you are being faced with many considerations. Outside of the traditional moving process, there are a few other factors that need to be addressed once you’re fully moved in. One of the top priorities to take into consideration is evaluating the different types of insurances that are applicable to your new situation. It can be easy to overlook the different policies that are available to protect you but taking some time once you’re settled into your new home is the perfect time to start.
Life Insurance
While life insurance might not be the most top-of-mind policy to evaluate when purchasing a new home, it is one of the most optimal times. A life insurance policy pays a lump sum of money to whom you choose if you were to pass away. This money can be used to pay funeral expenses, outstanding debts, and a mortgage if one exists for your new house. This can be especially important if you have a spouse or dependents that rely primarily on your income to pay for the house. While it is possible to wait until later in life to obtain this kind of insurance coverage, keep in mind that rates are generally more affordable when you are younger and in good health.
While you might already have this type of policy through your employer, chances are that it might not be enough. It’s suggested that an adequate amount of coverage to carry is 6-10 times the amount of your annual salary.
Here are some things to consider when evaluating this type of insurance:
- Policy length
- Personal demographics and health status
- Policy amount
- Beneficiaries
- Projected debt left behind in the case of your passing
Homeowners Insurance
When moving into a new home, it’s important to evaluate and secure a homeowners insurance policy. While it is not mandatory to carry this type of policy, it is usually required when applying for a mortgage, and it is in the homeowner’s best interest to have. This type of insurance covers instances such as exterior and interior damage, an injury that happens on your property, and loss or damage to your personal belongings. This type of coverage can also cover repairs or replacements to structures of the home, such as a shed or fence. While this coverage can be quite extensive, it does not cover events such as earthquakes or floods. Spending some time to shop around for the best policy for your situation can greatly benefit you in the long run, making the transition to your new house seamless.
Policy considerations for this type of insurance include:
- Additional insurances you might need (such as flood or earthquake)
- Amount of coverage needed
- Policy limitations
Automobile Insurance
It’s likely that you already have your own vehicle, and with that, an automobile insurance policy. In most states, having some sort of car insurance is mandatory, as it’s meant to protect you (and other parties on the road) against any financial loss if your car is involved in an accident or otherwise damaged. Even though you might already have car insurance, now is the perfect time to reevaluate your auto insurance policy. Auto coverage prices can vary, and factors such as how much you drive your car and the location of your new home can influence those prices. Another thing to consider is bundling certain policies, such as home and auto, to not only be more convenient but to save money as well.
Things to research for this insurance:
- Type of coverage needed for your car (liability, collision, or comprehensive)
- Bunding options
- Discounts (low mileage or good driver)
Disability Insurance
Another type of insurance that you might have prior to moving into your new home is disability insurance. This type of insurance is used to replace part of your income if you have an illness or injury that prohibits you from working. Again, while reevaluating this coverage might not seem necessary when moving into a new house, it’s particularly beneficial to do so if your income is the primary source of income and pays for the mortgage or utility bills. Remember that disability insurance covers things like physical injuries, illnesses such as cancer or heart attacks, or even surgeries. Similar to life insurance, this type of policy might be provided to you by your employer, so it is important to verify if you have coverage and if a supplemental policy is needed.
Pet Insurance
It’s possible that you were not able to have pets in your prior living situation, whether due to restrictions on your lease or the location that you were in. Now that you’ve moved into a new home, you might consider expanding your family by adopting a pet, and with that, you’ll want to consider how to best care for them.
Pet insurance is used to reimburse you for a portion of medical expenses and treatments for your pets. Unlike health insurance, where your claim is sent through insurance first, and you pay the balance, pet insurance requires you to pay the entire bill upfront, then you are reimbursed a percentage of the bill by the insurance company. While standard policies do cover many treatments, it’s important to know that things such as preventative care, behavior issues, grooming, and dental disease are typically non-reimbursable. While pet insurance premiums can vary, obtaining this type of policy early on in your time with your pet can prove to be beneficial if a medical emergency arises.
When moving into a new home, many considerations may be top-of-mind. Priorities such as unpacking and redecorating are important, but it’s also crucial to look beyond moving day and into your future. By evaluating your insurances when you move into your new home, you can ensure that you have adequate coverage for any situation that may arise.
