Relocating to another state is a decision you can’t afford to take lightly. An immense amount of planning and preparation is needed to protect yourself and your assets. Here are some things to consider before you pack your bags: 

Examine your moving insurance needs:
Review how your homeowner’s insurance policy may change in another state. Multiple factors affect policies, such as neighborhood crime rates, hazardous climate patterns and the materials used in the construction of your home. Also, check if your current agent or carrier is licensed to write in your new state. You may need to find a new broker and insurance company. 

Research moving companies and the insurance they offer:
When comparing moving companies, consider how possessions will be insured under your homeowner’s policy and how a deductible would apply to claims made for items damaged or lost along the way. Reviewing the  company’s moving insurance options will also help determine if additional coverage might be necessary. 

Determine if you need a Vacant Dwelling policy:
If you relocate before you sell your current home, ask about obtaining a Vacant Dwelling policy on your unoccupied home. Without proper coverage, events like fires, explosions, and other injuries or fatalities occurring on your vacant property can put you at tremendous risk.

Consider how a different climate’s risks affect insurance coverage:
Moving to a state with severe weather threats requires significant risk preparation, and insurance carriers will want to know the condition of the new home and its ability to weather a storm. They’ll assess the home’s overall durability, including the materials used in its construction and any subsequent upgrades. These details will affect the degree of coverage and policy cost. 

For instance, if you move to a locale where wind may cause catastrophic damage, you’ll likely see a wind/hail insurance deductible that’s separate from an All Other Perils Deductible. In hurricane-prone states a deductible can be a whopping two to five percent of the home’s insured value. 

If you’re purchasing a home in California, understand the prevalence of wildfires for their potential insurance implications. Consider homes comprised of composite materials and brush should be within 30 feet of a structure. These factors will positively impact the policy and carrier options.

Relocating to a Midwestern state? Homes could be situated over abandoned mines, and mine movement could cause significant damage not covered by a standard homeowner’s policy. Sinkholes are also common and are frequently excluded from homeowner’s policies.

Be aware of different auto insurance requirements in another state:
Beyond the home you buy, there are auto insurance requirements to consider. Auto insurance varies from state to state, so review the laws pertaining to your new area. A move to a state with a high proportion of uninsured drivers - such as Texas, which has the highest rate at 16.6 percent or Florida with 12.5 percent - may require you to consider how you’ll fare financially if you’re involved in an accident.

The reality of relocation is that any state holds some sort of insurance caveat. The devil is in the details, so contact your HUB broker to make sure you have the right coverage when preparing for your new home.