Yesterday, I talked about updating your auto policy when you move. Well, guess what? The same applies to your homeowners (or renters) policy. You need to update it and here is why:
- Your current company may not write policies in your new state.
- Your current coverages may not be adequate. Sure, it is a new house and you need to have a new coverage for the structure. But, liability limits that are adequate in one state may not be adequate in another state.
- You have no insurable interest in the old house. (Go read my old posts about insurable interest!)
- If you don't take out a new policy, your mortgage company will and it will be EXPENSIVE! OUCH!
There you go. Now, when you move, you can add getting new insurance to your list of things to do.