Thinking about downsizing can feel like a really big step, but it’s an exciting chance to rethink what you really need in a home. Whether you are moving out of your parents’ home into your first apartment or from a family home to a retirement condo, there are several important aspects to keep in mind. In this blog, we will walk you through how insurance changes when downsizing your home and guide you through taking a new home inventory, assessing changes in liabilities, and determining whom it needs to cover.  

Taking a New Home Inventory 

Downsizing to a new home can be a big task but taking inventory helps to keep the process running smoothly. Here’s a step-by-step approach to make it easier: 

• List Your Belongings: Go through each room and make a list of each item. Categorizing into groups like furniture, clothing, or electronics can help you stay organized and keep track of what you have.  

• Photograph and Document: Take photos of valuable items and document their current condition. This can be useful for insurance purposes in case of theft or anything getting damaged. 

• Create a Digital Backup: Secure your physical copies in a safe space, but also store your inventory in a cloud service for convenient access and added protection.  

To learn more about how to take a home inventory, check out our blog, Taking a Home Inventory for Your Homeowners Insurance. 

Assessing Changes in Liabilities 

Your liabilities significantly change when downsizing, and it is critical to assess these changes to ensure you have the coverage you need. The reduced property value of your new home often means that you need to adjust your homeowners or renters’ insurance to reflect the size. During this transition, you may also want to consider an umbrella policy for an extra layer of security. This is to ensure you are protected against unexpected events that may not be fully covered in your existing policy.  

Who Should Be Covered? 

When securing home or renters insurance, it is essential to ensure that you, your family, and your guests are adequately covered. As for homeowners’ insurance, it is important to customize your policy to make sure you have enough coverage, especially when you need it the most. Adding umbrella insurance extends liability coverage and protects your family or guests who may get injured on your property. Effectively protecting everyone involved with coverage as your transition into your new home provides financial security and peace of mind during this significant life change. 

Whether you are a young adult ready to have your own space or your kids are moved out and you want a more simplified way of living with less room for clutter, downsizing can be beneficial for people of any age at any stage of life. At Safeside Insurance, it’s our goal to help you get the right insurance at the right price. Contact us to review and update your current insurance coverage to match your new living situation and protect against any new risks.