Selling your home means transferring ownership of the property to the next owner. Now that you'll be at a new property, you may be wondering whether it's possible to transfer ownership of your home insurance policy as well. To ensure your next big move goes as smoothly as possible, stick around to learn more about home insurance and moving.
Is it possible to transfer my home insurance coverage to a new owner?
Now comes the real question. Is a home insurance transfer from one owner to the next possible? The short answer is no. You can transfer ownership of home insurance to someone else. Given that home insurance companies use various factors to calculate insurance rates, your current home insurance is essentially tailored to you, your claim history, and your insurance needs, which won't be compatible with the new owners.
For example, while you may have never submitted a claim under your own policy, the new buyer of your home may have numerous claims under their insurance history. Because of this, they're likely paying more for their insurance policy compared to the average homeowner, given that their insurance company likely deems them a higher risk to insure. Therefore, because of this underwriting process, it is not possible to transfer your insurance policy details.
So, what happens to your insurance when you move? In most cases, if you've paid for your coverage upfront for the year, your provider will refund you for the remaining months you've paid for. Otherwise, you'll likely need to cancel your plan, which may require you to pay a small cancellation fee for ending your plan before the end date. From then on, you can repurchase coverage for your new home.
Transferring home insurance coverage to a new address
Okay, what about changing home insurance? Do you need to switch your home insurance policies when you move to your new home, or can you transfer your current policy to your new house? Again, you won't be able to transfer your current policy with your insurance company to a new property. Because the new property is different from your last, your insurer needs to conduct a new risk assessment on your home to ensure the new home insurance policy is sufficient enough.
What is home insurance?
Whether it's your first time buying home insurance or not, before we answer the question that's on everyone's mind, let's briefly go over what exactly home insurance is and what it entails:
Property insurance
The first portion of a standard home insurance policy is property coverage, commonly referred to as dwelling coverage. This insurance policy will cover the cost of repairs or replacements if your home is damaged by a covered peril, including fire, severe wind, theft, vandalism, and other hazards listed in your policy details, up to your policy limits.
Liability coverage
Liability coverage works similarly to the policy you'd find in your auto coverage. It protects homeowners from any liabilities in the event someone is injured on their property. Liability coverage will also protect the interest of homeowners if property damage is caused to a third party. If a lawsuit is filed against you, your insurance policy will cover the cost of repairs, replacements, legal fees, medical bills, and other associated expenses.
Personal property insurance
Lastly, personal property coverage is the final portion of basic home insurance policies. It will cover the cost of repairs or replacements if your personal belongings are damaged or stolen from your house.
Are my belongings covered during my move?
Moving to a new home or new province is a stressful time for most Canadians. If you're using a moving company to transfer your belongings, it's only natural that you'd want to make sure they arrive at your new location harm-free. So, if you have a home insurance policy, are your belongings covered while in transit?
While your belongings should be covered under your current insurance provider, it depends on your specific insurance policy. If you're unable to find a section in your coverage that states your belongings are covered while moving when you read your home insurance policy, we recommend speaking with an insurance agent from your insurance company. They can help you add coverage during your move to ensure your belongings get to their new location damage-free.
How moving affects your home insurance premiums
The average home insurance cost in Canada is $1000 a year. However, because each property is unique, there's a chance you may pay significantly more or less than this figure. Home insurance companies consider numerous factors when calculating premiums, one of which is where your home is located.
Because location plays a major role in premiums, moving to a new neighbourhood can lead to significant changes in your overall costs. For example, an insurance company will look at your new home relative to the nearest fire station and fire hydrant when determining your risk profile. Another important aspect of where your new property is located is local crime rates. For example, moving from a rural area to an urban one likely increases average crime rates, which will be factored into your home insurance policy.
How to ensure a smooth insurance transfer to your new home
Moving to a new home is stressful, and a lot can happen during that time, which puts you at more risk of damages and losses. To prevent home insurance claims that occur during this time, here's what you need to do:
Speak with your insurance company before your move
Before moving into your new home, you'll want to make sure you speak with your provider and have a new insurance policy in place on the day of your move. This will help prevent lapses in coverage, saving you from paying for claims out of your own pocket.
Book a home inspection
Ensure a home inspection is conducted on your new property before moving in. Doing so will give you a better idea of the current condition of the property and whether repairs need to be made beforehand. Making sure the property is up to standard will also help prevent future insurance claims that could have been prevented.
How do I transfer my home insurance coverage?
If you're planning a move, informing your insurance company of your plans before the move-in date is important to ensure you remain covered throughout the process. Here's what you need to do:
1. Contact your insurance company
First things first, you need to contact your insurance company and inform them you're changing your address for insurance. Your insurance provider will ask you a series of questions, like when you're set to move in, details of your new property, and more.
2. Purchase new coverage
You can now go ahead and purchase a new policy with your home insurance company. Note that your future home insurance rates may be different from what you're currently paying, as your new policy will need to reflect the hazards, location, and other factors related to your new house.
3. Cancel your existing policy
Once your new home insurance plan is in place and you've moved into your home, you'll need to contact your home insurance company again and cancel your old insurance. Doing so after you've moved is a great way to ensure there is no lapse in coverage, giving you added peace of mind during the moving process.
Can I cancel my existing policy before the expiration date?
Yes, you can cancel your old policy with your insurer before the renewal date. However, you need to be aware that you may face penalty fees for doing so. Notify your insurer beforehand and ask them whether fees apply to your cancellation. You may be able to avoid a fee if you give them enough notice of your move.
Looking for affordable home insurance policies? Contact BrokerLink today!
Are you up for a home insurance renewal? An insurance broker from BrokerLink is here to help make your renewal as stress-free as possible! With years of experience and access to some of Canada's top insurers and insurance coverage, a BrokerLink insurance broker can help homeowners customize their home insurance to meet their needs and budget. Beyond standard home insurance, BrokerLink is able to help you acquire the following:
With locations across the country, if BrokerLink is in your neighbourhood, don't hesitate to come visit us and work with a broker in person. If you aren't close by, contact us over the phone!
Alternatively, if you're a new homeowner, simply browse for coverage, compare rates, and get a competitive insurance quote within minutes using our free online quote tool!
Get a home insurance quote [phone]
FAQs on transferring home insurance
If I’m moving houses, do I need to stay with the same home insurance provider?
No, you do not need to stay with the same home insurance provider when moving into a new home. That said, if you are moving midway through your current home insurance policy term, then you should contact an insurance broker to ask about any applicable cancellation fees. If your insurance company charges a penalty for cancelling early, you might decide that you’re better off sticking with your current provider. However, if you are willing to pay the fee, or your provider doesn’t have any cancellation fees, or your policy term is expiring anyway, then you can certainly change home insurance providers if you wish to do so.
When should I cancel home insurance after selling my home?
It is recommended that homeowners wait until their home has been sold to cancel their home insurance policy. You also want to avoid a lapse in coverage between your old home and your new home, so make sure that your new policy begins the same day or the day after your old policy ends. Another tip? Do not cancel your current policy on the closing date. Instead, wait until the last of your belongings have been moved out of the house. This is because it is possible that the home will be damaged as you move items out of your home. If your insurance policy is still in effect, it may cover you. Waiting a few days after closing to cancel your policy can also help you avoid a hassle in the unlikely event that your buyer backs out at the last second.
Can I change my property insurance coverage at any time?
Yes, technically, you are legally allowed to cancel your home insurance policy and start a new one at any time. However, you may incur fees if you cancel your policy before the term has expired. These fees vary so it’s best to speak with an insurance broker or agent to learn more about the financial penalties that may come with cancelling a home insurance policy early. If you wish to make changes to your home insurance policy coverages, this can be done at any time, however may increase or decrease in your premiums depending on what your changes are.
Can I switch my home insurance policy if I have an open claim with my insurer?
Yes, you might be able to switch your home insurance policy, even if you have an open claim with your insurance provider. That said, the claim won’t be transferred along with your insurance. The insurance company currently handling your claim will continue to do so, and you will still have to deal with them until the claim is resolved.
If you have any questions, contact one of our local branches.
