From organising conveyancers to packing your belongings, moving house can be stressful for many reasons. Transporting valuables is one concern that can cause sleepless nights for many home movers as they prepare to leave their old homes.
Whether you’re moving your belongings yourself or hiring a removal company, the prospect of important items being damaged in transit is a concern you could do without. But does your current insurance protect you if the worst happens? And if not, what do you need to ensure you’re covered when moving house?
In this guide, we’ve covered all aspects of insurance when moving home, from what you need to the various types on offer and how to get the best moving house insurance deal for you.
What insurance do you need for moving house?
If you have an existing contents insurance policy, you may already be covered for moving your belongings to your new house. However, while most policies include removals, you shouldn’t just assume yours does.
Equally, there could be other terms in the policy that mean certain aspects of your removal are not covered, so checking the terms of your home insurance can save you a headache down the line.
Most insurance policies that include contents, including removals, will cover you for any loss, damage, or theft of your furniture or belongings during the removal process. However, many policies will only cover you if you use a professional removal company. This means you risk voiding your insurance if you transport the goods yourself or use a ‘man with a van’.
If you don’t already have an existing policy that covers contents, many removal companies offer removals insurance, which covers loss and negligence. However, these policies will also come with certain terms and limitations, so it’s worth reviewing these beforehand.
Who is liable if my possessions are damaged during the move?
The liability of any damaged possessions during your move will depend on the nature of the damage, the level of cover you have, and who moved your possessions. If your insurance policy covers removals, this will likely cover any damage occurring when moving your belongings to your new home. It is also always advised to check with the removal company what insurance policies they have in place and whether they cover your belongings or not, to ensure you have the right level of cover.
An exception to this would be if you opted to move your possessions without the help of a professional removal company, as some policies do not cover removals made by non-professionals, meaning the liability would fall on you.
Do you need both removal and contents insurance when moving house?
Most insurance policies will provide enough coverage to prevent you from needing to take out removal insurance when moving house. However, you should always check and make sure that your plan covers you against all eventualities when moving. If your policy For example, if you have a contents insurance policy that doesn’t cover removals, taking out removal insurance is the best way to cover your costs should your possessions get lost or damaged.
Even if your policy does include removals, you should check the terms to see exactly what’s included. If, for example, your plan covers damage but not loss or vice versa, it may still be beneficial to take out removal insurance when moving house.
To make sure you’re fully covered, always check the following:
Value limit
Typically, contents insurance cover comes with a value limit, dictating the maximum value your insurance will cover. After this amount, any existing value would be liable to you. Therefore, checking that the total value limit of your insurance is enough to cover your belongings is crucial.
Similarly, some plans have ‘single item limits’ that place a maximum value on the items they’re willing to insure. Therefore, making sure this limit covers your most expensive items will prevent any nasty surprises from occurring later on.
Exclusions
Some plans exclude certain valuable items like watches or jewellery. If this is the case for your plan, you may want to keep hold of these items rather than place them with the rest of your belongings.
Rules
Even if you’re using a professional removal service, it’s worth checking the terms for other rules that may affect your cover. For example, some plans state that all belongings must be packed and loaded by the movers, meaning you could compromise your cover if you’ve packed your belongings yourself.
Will an existing home insurance policy cover you for your new home?
While an existing home insurance policy won’t automatically cover you for your new home, it can usually be easily transferred by contacting the company. However, transferring your policy can sometimes come with admin fees, and your monthly premiums might change.
This is because home insurance premiums are typically determined by factors relating to the home and the area, such as:
- Population
- Crime rate
- Property value
- Security level of the property
- Risk of flooding.
Also, if you’ve bought any furniture or electrical items for your new home, these will likely raise the value of your home contents. This may mean you may need a higher amount of coverage than you had before.
Can you cancel your existing home insurance policy when you move?
If your current insurer is unable to provide you with cover in your own home, you’ll usually be able to cancel your policy.
The process of cancelling will depend on the company, but typically just requires a phone call or email explaining your need to cancel and the reason why. From here, they should be able to send you any relevant documentation to officially cancel your plan.
You can cancel your insurance policy after you’ve exchanged contracts with the buyer of your current home, as this is the moment you’re no longer liable for the property. However, rather than cancelling straight away, it may be best to keep it open for a while longer to make sure you’re still covered until you’ve moved out.
When should you set up home insurance cover for your new property?
You should have buildings insurance set up for your new home from the day you exchange contracts with the seller. This is the moment you become responsible for the home, meaning you would be liable for any building damage occurring from this point onwards.
What’s more, it’s unlikely that you’d be approved for the mortgage without some level of building cover, so it’s important to have this sorted long before you plan to move in. While this may mean a short period of paying home insurance for both your new and existing home, it’s a necessary evil that provides peace of mind while you complete your move.
If you’re not moving into your new home straight away, inform your insurance company that the house is going to be vacant for some time. Certain policies require you to inform them when the property is going to be unoccupied for a significant period due to the increased risk of break-ins or undetected household issues.
Read our comprehensive guides for advice on key home moving factors like the cost of moving home and reducing moving house stress.
What should you look for in a home insurance policy?
The best home insurance policies will offer substantial buildings and contents coverage at a price that doesn’t break the bank. If you have buildings cover, this will likely protect you against standard risks like fire, theft, and vandalism.
When it comes to your buildings insurance, it’s important to ensure that the value limit is high enough to cover the cost of your home. It’s important to be certain that the limit is high enough to cover the value of all your belongings toprevent you from being liable for some costs in the event of adverse events like fires, floods, thefts, and burglaries.
There are other key considerations you should check before choosing your home insurance plan, including:
Exclusions
Some buildings insurance policies do not cover fire damage, while certain types of contents cover may exclude or have value limits for single items. Additionally, certain portable items like mobile phones may not be considered part of your home’s contents and may require separate mobile phone insurance.
That’s why it’s important to check out the exclusions and limitations of any insurance in the terms and conditions before signing up.
This will allow you to weigh up your options and decide whether you want to:
- Shop around for an alternative plan
- Pay for add on’s or extra cover to insure items not included in the policy
- Take out the policy but accept the limited coverage in certain areas.
Either way, this will give you a clear idea of what you’re signing up for and allow you to plan accordingly.
Storage
Certain home insurance policies do not cover items when in storage. This is an important term to be aware of if there’s likely to be any time between leaving your current house and moving into your new one.
If a policy does not cover storage, you may want to shop around for another policy or take out a separate storage cover plan in the short term.
High-risk items
High-risk items cover is particularly important when choosing home insurance. Certain items that are considered fragile or easily breakable may be considered ‘high risk’ by an insurer and, therefore, excluded from the cover. If not excluded, they may have a value limit or require you to pay for additional add-ons to cover.
Reviewing these terms in advance will allow you to assess whether a home insurance package is right for you and whether you require any additional plans or add-ons.
Conclusion
With so many variables to consider when taking out moving house insurance, we hope that this guide gives you everything you need to make sure you’re fully covered when the big day arrives. If you’d like to find further info on an array of factors relating to home insurance, visit our expert home insurance guides.
Our site allows you to compare deals on health insurance and life insurance to keep you covered should the worst happen.
FAQs
How do I calculate how much cover I need?
The amount of contents insurance you need can depend on numerous factors, including:
- The collective value of your possessions
- The individual value of your most expensive possessions
- Whether you have any particularly large or fragile items within your possessions
- Whether your possessions will be taken out of your home (e.g. removals, storage, etc.).
When choosing a policy, it’s important to ensure the value limit covers the total cost of your belongings. Similarly, check that the individual value limit is enough to cover the most expensive item among your possessions. Doing this will ensure you have enough cover to prevent you from being financially liable should anything happen to your belongings.
Also, check the terms for any exclusions on certain items, and for any situations that could void the insurance (e.g. goods being transported, storage spaces, unattended home). Doing this will allow you to prepare for any situations not covered by your insurance and take out additional protection where necessary.
What is mortgage protection insurance?
Mortgage protection insurance is a type of cover that pays your mortgage payments in the event that you can’t work due to injury, illness, or unforeseen circumstances. The cost of mortgage protection insurance can vary depending on the value of your home, the location, and your health status when taking out the insurance.
Additionally, the terms and level of coverage for your insurance will vary depending on the provider and the plan.
How much should you insure your house for with buildings insurance?
You should insure your house for the amount it would cost to completely rebuild your home in the event that it was destroyed in a fire or adverse event. This will prevent you from being faced with unwanted costs and liabilities should the worst happen.
It's important to note that rebuild costs are likely to differ from the market value of your home, and are usually lower. The Association of British Insurers (ABI) recommends this rebuild cost calculator.
