Homeowners insurance an important part of moving

Of all the arrangements a person must make once they've relocated to a new home, obtaining homeowners insurance might be one of the most important.

The coverage provides vital protection for their new home, but sometimes a person isn't completely clear on what kind of insurance or how much they should purchase. CNN Money Magazine advised that homeowners comparison shop to find the most affordable policy, adding that they might be able to save 5 to 15 percent on their premiums by bundling their home insurance together with other policies from the same company, like their auto insurer.

Additionally, homeowners should be careful not to pay extra for too much coverage. The report added that some policies contain inflation protection clauses that will increase their coverage amount and the cost of their premiums. In today's current market, where construction costs are so low, inflation protection isn't nearly as vital and cutting back on that provision can save a homeowner money.

Before moving, homeowners should also take a property's history into account, since past insurance claims can affect their current premium, said the report. "Certain locations [such as those vulnerable to flooding] may be more prone to claims," InsWeb chief financial officer Kiran Rasaretnam told the magazine.

During the actual moving process, consumers would also be well advised to secure moving insurance. The coverage can protect their belongings during the transition to a new home.


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