No matter where you live, you can and should insure property in the state in which the real estate exists. Insurance companies will base your premiums on the location of the property, not on your physical residence. You can save money on insuring both properties by using a single insurance company for all pieces of property.
Out of State Property
Just because you cannot live in two locations does not mean you cannot own homes in more than one state. And while you cannot simply add a second property to your existing home coverage, you are still eligible to buy a new policy, often from the same company as your first home insurance policy.
State Insurance Regulation
Insurance is not regulated by the federal government, but is regulated at the state level. This means that not every insurance company is licensed to sell insurance in all states, and that an insurance company that sells home insurance in one state, may sell insurance but not home insurance in another. The Free Insurance Advice Website contains a comprehensive list of insurance companies, ratings for the companies and what states each one is licensed to do business in.
One Insurer, Different States
A benefit of using the same insurance company for more than one insurance policy is that you will be eligible for discounts as a loyal or multiple policy holder. For example, if your home and car are covered by a national company in your home state, choosing that same company to insure a vacation home in another state would mean lower premiums.
High Risk Property Insurance
Some types of insurance coverage may be difficult to get, depending on the type of coverage and where it is located. Texas is a good example of this, because flood insurance is not offered by all insurance companies, and in some locations in the state you will need to purchase the policy from a high risk insurance company or even through the Texas FAIR plan that offers coverage on properties that are otherwise too risky to insure.
Contact the Department of Insurance
Before you purchase insurance in another state, contact that state’s Department of Insurance. Its representatives can tell you whether the insurance company you are considering is licensed and whether there are any outstanding complaints against the company. The department can also tell you if the area where your property is located is a high-risk zone.
- Free Insurance Advice: Insurance Company Reviews and Ratings
- Federal Citizens Information Center: 12 Ways to Lower Your Homeowners Insurance Costs
- Allstate. "What Are The Different Types Of Home Insurance Policy Forms?" Accessed Aug. 20, 2020.
- Insurance Information Institute. "Homeowners Insurance Basics." Accessed Aug. 20, 2020.
- Insurance Information Institute. "Facts + Statistics: Homeowners and Renters Insurance." Accessed Aug. 20, 2020.
Roger Golden began his career as a writer in 2008, when he began writing weekly insurance and personal finance articles. Golden's work has appeared on eHow, USAToday.com, TheSpoof.com and his privately managed blogs, .modern Dislogic and Outdoors—Dixie Style.