Can you use your property in another state to get cheaper insurance?
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Asked April 27, 2011
That depends on what you mean by the question. You cannot file for insurance on the property in this state and claim it as property in another state. But you may be able to qualify for discounts on insuring both properties if you purchase policies with the same company. Owning property is also used in determining financial stability and personal risk.
Claiming that a piece of property is in a different state is fraud. If you attempted to file a claim on such a property, it would be denied at the very least, and you may be be investigated for additional legal action. Insurance is regulated in each state, and the risks associated with coverage are calculated differently, so the same piece of property would have vastly different insurance costs in one state compared to another.
On the other hand, owning property is a beneficial factor in determining your financial stability, and owning more than one piece of property, even in different states, can help you keep your insurance down by qualifying as a low risk purchaser. And insurance companies will give you discounts for loyality and having multiple policies when you insure multiple properties or take out multiple lines of insurance with the same company. In this respect, owning property in another state can save you money by lowering the total amount of premiums you have to pay.
Answered April 27, 2011 by Anonymous