What insurance do I need before moving in?
Move-in Ready: What insurance MUST you buy before moving into your Georgetown home? Read this now — don’t close without it.
Why this matters — fast
If you’re selling a home in Georgetown and planning your move, insurance is not optional. One missed policy or a coverage gap on closing day can cost thousands, create legal headaches, and ruin a smooth sale. I work with sellers across Georgetown, ON every week. I see the same preventable mistakes. Fix them now.
Local risks that make insurance critical in Georgetown, ON
- Basement flooding and sewer backup. Georgetown and Halton Hills sit near rivers and older storm systems. Spring thaws and heavy rains raise the chance that basements take water.
- Freezing and burst pipes in winter. Ontario winters can freeze exterior and poorly insulated pipes.
- Moving-day accidents and liability. Movers, contractors, visitors — injuries happen. Liability coverage protects you.
- Damage during transit. Valuable items get damaged or lost while loading, unloading, or in transit.
If you ignore these, you don’t just lose items — you expose yourself to legal claims and mortgage/lender problems at closing.
The exact insurance you need before moving in (and before you hand over keys)
Here’s a clear checklist. No fluff. Buy or confirm these before closing day.
- Homeowners insurance (effective on closing day)
- What: Full home insurance that covers the structure, attached structures, and standard liability.
- Why: Lenders require proof. You need protection the moment you own the property. Don’t assume the seller’s policy transfers.
- Action: Call your insurer 7–14 days before closing. Get a binder or policy number. Confirm the effective time and date match your possession date.
- Contents (personal property) coverage
- What: Coverage for your furniture, electronics, and personal items.
- Why: Most home policies include contents, but limits differ. If you own high-value items, schedule them or add a rider.
- Action: Inventory valuables with photos. Ask about replacement cost vs actual cash value.
- Liability coverage and umbrella policy
- What: Protects you if someone is injured on the property or if you’re legally liable for damage.
- Why: Moving day increases risk. A single incident can lead to a lawsuit.
- Action: Keep at least $1M liability. Consider an umbrella policy if you have significant assets.
- Sewer backup / overland flood endorsements
- What: Add-ons for sewer backup and surface flooding.
- Why: Standard policies often exclude sewer backup and overland flooding — both real risks in Georgetown.
- Action: Ask for sewer backup coverage and consider overland/flood coverage if the property is in a flood-prone area.
- Title insurance (recommended)
- What: Protects against title defects, fraud, and title-related legal costs.
- Why: Title issues can surface after closing and derail ownership.
- Action: Get a title insurance policy at closing. It’s a one-time cost and removes a major risk.
- Mortgage insurance (if required by lender)
- What: Lender mortgage insurance or CMHC insurance for high-ratio mortgages.
- Why: Required by lenders when your down payment is below the lender’s threshold.
- Action: Confirm with your mortgage professional.
- New home warranty (for new builds)
- What: Warranty that covers workmanship and major structural defects for a set period.
- Why: If you bought new construction, this protects against builder defects.
- Action: Confirm the warranty is active and transferable.
- Moving company insurance / transit insurance
- What: Coverage provided by the mover for damage/loss during transit.
- Why: Moving companies’ basic liability is often minimal.
- Action: Buy full-value protection or a transit policy for high-value moves. Get it in writing.
- Builder’s risk or renovation insurance (if renovating before move-in)
- What: Protects improvements or renovations during construction.
- Why: If you renovate after closing, liability and property risk increase.
- Action: Buy short-term coverage for the renovation period.
Timing: when to arrange each policy
- 30+ days before closing: Contact your insurance broker. If you need quotes, start now.
- 14 days before: Finalize primary homeowner policy and any endorsements (sewer backup, flood).
- 7 days before: Get the binder/policy number and send proof to your lawyer and lender.
- Closing day: Confirm effective time. Never cancel your seller’s policy until possession and keys have been transferred and the buyer has confirmed their coverage.
Common seller mistakes (don’t be that person)
- Cancelling insurance too early. Sellers cancel the policy before closing and leave a gap.
- Assuming moving companies will cover everything. They often don’t. Get transit insurance.
- Skipping sewer backup or flood endorsements. It’s cheap compared with a basement flood claim.
- Not getting a written binder. Lenders and lawyers want proof.
How much coverage do you actually need?
- Dwelling coverage: At least the replacement cost of the house. Underinsuring can leave you with large out-of-pocket costs.
- Contents: Estimate total replacement value; add riders for jewelry, art, and collectibles.
- Liability: Minimum $1M recommended for homeowners; consider $2M–$5M umbrella for extra protection.
- Deductible: Choose a deductible you can afford. Higher deductible lowers premium but raises risk.
Seller-specific insurance tips for Georgetown
- Keep your policy active until keys change hands. If the buyer’s finance falls through and you’ve already canceled, you’re exposed.
- For homes with old heating systems and piping, get a pre-listing inspection and ask your broker about freeze and sudden accidental damage coverage.
- If you know the neighbourhood had past flooding, insist on sewer backup and discuss overland flood with your insurer.
How I help sellers in Georgetown close clean and move fast
I coordinate directly with your insurer, lender, and lawyer to make sure insurance is in place at the right time. I’ve closed dozens of homes in Georgetown and handled every insurance trap. My team provides a pre-closing checklist that keeps you off spreadsheets and out of claims.
If you want a step-by-step insurance checklist tailored to your property in Georgetown, email me at tony@sousasells.ca or call 416-477-2620. I’ll connect you with local brokers who know Halton Hills risks.
Quick closing-day script to give your insurer, lawyer, and lender
- Insurer: “Activate homeowner policy for [address] at [time/date of possession]. Binder to follow.”
- Lawyer: “Please accept binder/policy number for closing.”
- Lender: “Proof of insurance submitted and effective at closing.”
Get these three confirmations in writing the day before closing.
FAQ — Closing, Moving, and Insurance for Georgetown Home Sellers
When should I arrange insurance for my new home?
Arrange 7–14 days before closing. Start the process 30 days out if you need quotes. Confirm the policy is effective on the possession date and time.
Can I use the seller’s insurance the day I move in?
No. Insurance follows the policyholder. The seller’s policy won’t protect you after ownership transfers. You must have your own policy active at closing.
Does the lender require proof of insurance?
Yes. Most lenders require an active homeowner policy before releasing mortgage funds. Provide a binder or policy number to your lawyer and lender.
Do I need flood insurance in Georgetown?
If the property is in a floodplain or has a history of basement flooding, yes. Standard policies often exclude overland flood. Ask about sewer backup endorsements and consider overland coverage.
What does sewer backup coverage cover?
It covers damage from sewage overflow due to clogged municipal lines or backup into your home. It’s sold as an endorsement and often costs little relative to the potential claim.
What should I check with the moving company about insurance?
Ask for the mover’s liability limits and the types of coverage they offer (carrier liability vs full value protection). Never rely only on the mover’s basic coverage for valuable items.
I’m selling and moving out before closing. What insurance do I need?
Keep your seller insurance until possession and keys have been legally transferred. Notify your insurer about moving-out plans so there’s no coverage gap.
Is title insurance necessary?
Title insurance is cheap compared to legal costs to fix title defects. It protects against fraud, clerical errors, and other title issues that appear after closing.
What if I’m buying a condo in Georgetown?
Condo corporations have master insurance for the building, but it often does not cover your unit’s interior finishes or personal property. Get a condo policy that covers your unit’s improvements, personal contents, and liability.
Should I get a home warranty for a resale home?
A home warranty is optional but can provide short-term protection for major systems and appliances. It can be useful during the first year after purchase.
Final move: avoid gaps, prove coverage, and close with confidence
Closing and moving are logistics plus legal steps. Insurance is the single thing that converts unknown risk into predictable cost. Don’t gamble with your move. Get the right coverage, confirm it in writing, and keep your lawyer and lender informed.
For fast, local help in Georgetown, ON — email tony@sousasells.ca or call 416-477-2620. I’ll connect you with lenders, insurers, and movers who close on time and without drama.
Author: Tony Sousa — Local Realtor serving Georgetown and Halton Hills. More resources and checklists at https://www.sousasells.ca
