Q
The following situation has come up several times and we would like your opinion. Say an insured family moves to a different city and the new residence is not ready when they arrive. What usually happens is that the family moves into an apartment for a while and puts the bulk of their personal belongings into a self-storage facility. The policy on their former home is not cancelled. We know that they have the full coverage C limit for belongings in the apartment for 30 days from the time they start the move (after which the limit is reduced to 10 percent of the coverage C limit). Assuming that they have not closed on the new home or even bought a new home when they arrive, is their property in storage protected until they move to the new permanent residence?
California Subscriber
A
Yes, the insureds' personal belongings in self-storage are covered under the full coverage C limit until they can move into their new home. Personal property is insured anywhere in the world. Full coverage for personal property “in a newly acquired principal residence” lasts for 30 days from “the time [they] begin to move the property there.” The storage facility is not a “newly acquired principal residence,” nor is it an uninsured secondary residence, where the 10 percent limitation applies.
The answer is the same if the insured's have cancelled the policy on the original home so long as they have bought insurance on the new home, or coverage as tenants under form HO 00 04 05 01.
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