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Tree removal may be covered by homeowners insurance in some situations, but not all of them. It depends on why the tree fell and whether any property damage occurred.

Here is a detailed breakdown of when you can get tree removal covered by your insurer and when you’ll be financially responsible on your own.

When Does Homeowners Insurance Cover Tree Removal?

Let’s take a look at how homeowners insurance covers tree removal in different scenarios.

Debris Removal After a Covered Peril

Standard insurance policies do not usually cover tree debris removal alone. There needs to be some other type of covered damage in order to successfully file a claim. You can, however, purchase additional insurance coverage specifically for trees and bushes.

When a Fallen Tree Damages a Covered Structure

When a healthy tree falls during a covered peril — think a windstorm, fire, hail, vandalism, or weight of snow — removal is usually covered by your homeowners insurance policy. But insurers expect you to keep up with proper maintenance of trees and other plants on your property. If a dead or rotting tree falls and hits a structure, removal (and any damage caused to your home or other personal property) won’t be covered.

When a Fallen Tree Blocks a Driveway or Access Ramp

Can home insurance cover tree removal when the debris is blocking access to the home? Yes, in many cases, this situation is covered. Generally, if the tree is blocking a driveway or handicap ramp, you can file a claim and have the debris removed.

How Do I File a Claim for Tree Damage and Removal?

Follow these steps to file a claim with your insurance company after a tree causes damage on your property.

Immediate Steps to Take

There are two things you need to do right away to make sure your home is safe and that the damage is properly documented for your insurance company.

•   Perform a safety check: Ensure your family and pets are safe. If the tree fell on your home, stay away in case there is structural damage. Check for downed power lines, and report the incident to 911 and your utility provider. Then, gauge the damage to see if it’s safe to stay in your home or if you need to go elsewhere for the time being.

•   Take pictures and videos: Once immediate safety needs are taken care of, it’s time to contact your insurance company. Record as much of the damage as you can using photos and video.

Documentation Needed for Your Claim

The main documentation you’ll need is photographic evidence of the fallen tree. Be sure to take photos from multiple angles, especially if the tree is covering a structure or access areas, like a driveway or entrance to the home. Also include inventory of any damaged personal property you want to include in your claim.

The Claims Timeline and Process

The timeline for a tree debris removal claim varies depending on your insurer and the extent of an investigation they require.

In terms of process, expect an adjuster to be assigned to your claim. This professional will assess the damage and determine whether or not the tree debris removal (and any property damage) is covered by your policy.

Recommended: Homeowners Insurance Guide

What Tree Removal Costs Are Not Covered?

There are several scenarios when your insurance policy likely won’t cover any tree removal costs.

Standard Policy Exclusions

Some natural disasters and other factors are excluded from standard home insurance policies. In these cases, any fallen tree and resulting damage would usually not be covered unless you have a separate policy or endorsement.

When you’re buying homeowners insurance, take note of the standard policy exclusions, such as:

•  Earthquakes

•  Floods

•  Pest damage

Removal of Standing Dead or Diseased Trees

Homeowners insurance typically doesn’t cover any type of preventive removal of trees, even if those trees are diseased or dead. This is considered home maintenance and is something you’re financially responsible for as a homeowner.

Trees That Fall Without Causing Damage or Blockage

As mentioned earlier, your home insurance policy likely won’t cover tree removal unless the tree has caused damage to a structure or is blocking some type of access on your property.

Understanding Tree Removal Limits and Deductibles

Even when tree removal falls under a covered event, there are some limitations to keep in mind. Let’s take a look at some of them.

Standard Sublimits for Tree Debris Removal

Tree debris removal is covered by home insurance in two parts, which impacts how much the insurer will pay.

When a tree falls on a structure or access point, it needs to be moved out of the way in order for repairs to begin. That falls under your dwelling coverage. But once it’s safely out of the way, it still needs to be removed from the property. Debris removal is subject to its own policy limits, usually between $500 and $1,000.

How Policy Limits Apply Per Storm or Event

One important homeowners insurance term to learn is the per occurrence limit. It means there is a limit to how much the insurer will pay for all claims related to a single event, such as a large storm.

This is different from your policy’s aggregate limit, which is the maximum amount your insurer will pay for all covered claims within one year.

How Your Main Deductible Affects the Claim

When filing a claim that includes tree debris removal, you won’t receive the full estimated amount. Your insurer will subtract your deductible before reimbursing you.

Your deductible is the amount you’re responsible for in each claim. Most homeowners insurance policies range from $100 to $5,000.

Recommended: Homeowners Insurance Costs Explained

The Takeaway

Home insurance can be a powerful financial resource, whether you’re facing tree debris or other damage to your home and property. Does homeowners insurance cover tree removal? In some situations, yes. But it depends on why the tree fell and whether it caused any damage to your property.

Find affordable homeowners insurance options with SoFi Protect.

FAQ

What if my tree falls on my neighbor’s house (or vice-versa)?

Typically, the homeowner who experiences damage files a claim with their own insurance company, regardless of where the tree originally stood. So if a healthy tree from your yard falls on your neighbor’s house, they would likely be covered by their own policy.

If a tree from your neighbor’s yard lands on your property and causes damage, you would file a claim with your own insurance company. They may, however, try to collect reimbursement from the neighbor’s insurer. If they’re successful, you could get reimbursement for your deductible.

Does insurance pay to remove a dead or diseased tree before it falls?

No, removing dead or diseased trees, especially when they’re still standing, is the homeowner’s responsibility. It’s simply part of the home maintenance routine. And it’s an important part. Leaving those trees untended could lead to damage that also isn’t covered by your insurance policy.

How much will my insurance policy pay for tree removal?

Each policy has its own limits for tree removal for approved claims. Check the details to see the maximum reimbursement per event. In most cases, it’s between $500 and $1,000. Remember that you usually can’t get insurance to pay for tree removal if it didn’t block access to your home or cause damage to a structure.

Does my policy deductible apply to a tree removal claim?

Yes, your deductible does apply to a tree removal claim. If you’re getting a tree removed that is simply blocking a driveway and didn’t cause any damage to a structure, your deductible may end up being higher than the actual cost of removal.

If a storm knocks down multiple trees, are they all covered?

Typically, the debris removal limit applies to one tree, but your overall dwelling policy has a total limit for trees, shrubs and landscaping. In other words, the removal of multiple trees may be covered by your policy, but only up to the allowable limit.

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photo credit: iStock/SolStock
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-017

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Whether someone ransacked your home during a break-in or swiped valuables from your car, homeowners insurance can help you recover financially from the ordeal. In general, a policy will pay to replace stolen or damaged belongings and repair damages from the theft, up to your coverage limit.

As with other types of insurance, there are nuances to keep in mind. Let’s dive in.

What Does Homeowners Insurance Cover When Property is Stolen?

As we mentioned, standard homeowners insurance policies usually cover the cost of repairing or replacing personal property that was stolen from your home, outside your home, or from a car or storage unit. Here’s a closer look at each scenario.

Theft of Personal Property From Your Home

If belongings are taken from your home, your policy will typically pay for the cost of repairing or replacing them, up to a point. A homeowners insurance policy generally includes a percentage — often between 50% to 70% — for personal property coverage. So, for example, if your policy’s total dwelling limit is $500,000, you’ll have anywhere from $250,000 to $350,000 in personal property coverage.

Recommended: Homeowners Insurance Terms

Belongings Stolen Outside Your Home

Your homeowners insurance should also cover your belongings if they are stolen while outside of your home, including when you’re traveling. Personal property outside your home is usually covered up to 10 percent of your personal property coverage limit or $1,000, whichever is higher.

Items Stolen From a Car or Storage Unit

Many people may think theft from your car would be covered under your auto insurance policy, but it is actually your homeowners insurance that steps in here. While a comprehensive auto insurance policy can protect you if the car itself is stolen, it won’t help pay to replace personal property stolen from inside your car. This would fall under personal property coverage in a homeowners insurance policy.

Homeowners insurance should also cover theft of your personal property in a storage unit.

How Do I File a Theft Claim?

If you need to file a theft claim with your home insurance, be sure to check out your homeowners insurance guide and follow the company’s protocols. These steps can also help.

Immediate Steps to Take After a Theft

First thing first: Ensure that you — and the remainder of your belongings — are safe. Then, call the police to file a police report for theft. You should also take pictures of the area, start making a list of all stolen property and start gathering necessary documentation.

Documentation Needed for Your Claim

Your insurance company will likely require proof of the theft, and a police report can serve that purpose. Any other documentation you have, like appraisals, pictures of the items or other proof, should also be submitted with the insurance claim.

The Claims Timeline and Process

The claims process usually begins with documenting the damage and stolen property, and reporting the incident to your insurance company. The insurer will likely assign an insurance adjuster to assess the damage, review the policy, and provide a settlement estimate.

You will receive payment for the approved amount, minus your deductible. Keep in mind that It can take weeks or months to fully resolve a claim, depending on the company, the complexity of the claim, and the location of the claim.

Recommended: How to Buy Homeowners Insurance

What Theft May Not Be Covered?

Not all theft will be covered by homeowners insurance. Most standard homeowners insurance policies have standard policy exclusions. Theft from a home under construction and theft by a resident of the household, for example, are generally not covered by homeowners insurance. Let’s take a closer look at both scenarios.

Standard Policy Exclusions

Most policies have sub-limits for expensive items like jewelry, furs, firearms, art, or collectibles. Coverage for cash, checks, or money orders that are stolen from your home is also often limited or excluded, as are items used for business purposes.

Most policies also will not cover theft resulting from negligence (like leaving your doors unlocked) or for losses that occur when the home is left vacant for extended periods (like if you reside in a second home for part of the year).

Theft from a Home Under Construction

Standard homeowners insurance policies usually do not cover theft from a home while it is under construction. You can get a “Home Under Construction” rider to your homeowners policy if you have a short term home construction project. A Home Under Construction rider covers losses from such perils as fires, storms, burst pipes, and theft.

If you are building a new home or have a longer construction period, you will need to get a separate builder’s risk policy during construction.

Theft by a Resident of the Household

Homeowners insurance likely will not cover theft committed by a resident of the insured’s own household. Insurance policies are designed to protect against theft by outside parties, so someone living in your household would typically be excluded.

Understanding Your Theft Coverage Limits and Deductibles

Homeowners insurance should cover theft, but how much it actually covers is determined by your policy’s theft coverage limits and deductibles.

Your Overall Personal Property Limit

Your overall personal property limit is usually a percentage of your dwelling coverage. This will vary by policy and is determined partly by whether you have an actual cash value or replacement cost value policy.

Replacement cost value is the amount it will take to replace your personal property without any deduction for depreciation of the items. Actual cash value is the replacement cost value amount, minus depreciation.

Special Sublimits for High-Value Items

If you have high-value items, you may want to consider supplementing your coverage. Scheduled personal property coverage covers expensive items, collectibles, or antiques. Some high-value items, like jewelry, have special sublimits due to their likelihood to be stolen.

If you have a high-value item that you want scheduled under insurance, you’ll need to have it appraised. Scheduling may expand the range of events you are covered for and often includes replacement should you lose the item. Common coverage sublimits are usually capped at $1,000-$2,500 for jewelry or watches, $2,000 to $3,000 for firearms, $2,500 silverware, and $200-$500 for coins and precious metals.

How Your Deductible Affects a Theft Claim Payout

As we discussed, once your claim is approved, you will receive a payout for the cost of the stolen items, minus your deductible. If you have an actual cash value policy, the payout will also subtract the depreciation amount from your payout.

Your homeowners insurance rate may increase after you successfully file a homeowners insurance theft claim. The severity of the claim can impact the amount of the increase.

The Takeaway

No one wants to experience theft, but thankfully you should have some coverage if you have homeowners insurance and the circumstances meet the included criteria. Theft coverage is something that to consider when you’re comparing homeowners insurance policies. There may be nuances with each policy, but an agent can walk you through the details.

If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.

Find affordable homeowners insurance options with SoFi Protect.

FAQ

Is my property covered if it’s stolen from my car or while traveling?

Generally speaking, your personal property is covered by your homeowners insurance if it is stolen from your car or while you are traveling.

Are expensive items like jewelry or firearms fully covered against theft?

Expensive items like jewelry or firearms are usually not fully covered by standard homeowners insurance against theft. Most homeowners insurance policies have sub-limits that place a low maximum payout on theft of valuables.

If you want protection against expensive items, you should purchase additional coverage through an endorsement or a separate insurance policy.

What’s the difference between replacement cost (RCV) and actual cash value (ACV)?

Replacement cost value is the amount that it will take to replace your personal property without any deduction for depreciation of the items. Actual cash value is the replacement cost value amount, minus depreciation.

Do I need a police report to file a theft claim?

Yes, you’ll likely need a police report to file a theft claim with your homeowners insurance. Your insurance company may require proof of the theft, and a police report can serve that purpose.

Will my rates go up after filing a homeowners insurance theft claim?

Your homeowners insurance rate may increase after filing a homeowners insurance theft claim. The severity of the claim can impact the amount of the increase.

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photo credit: iStock/KatarzynaBialasiewicz
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-018

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Your homeowners insurance doesn’t just protect your home — it may also offer some protection for your belongings stored in a storage unit. That coverage can provide peace of mind if you’re storing valuables off site. But it’s important to know that coverage may be limited and might not cover everything in your storage unit.

How Homeowners Insurance Covers Items in a Storage Unit

Most standard homeowners insurance policies cover a portion of your belongings while they are in a storage unit. The insurance coverage limit for your belongings in storage is usually a set percentage of your homeowners insurance policy’s personal property coverage limit.

Off-Premises Personal Property Coverage

It’s common for homeowners insurance policies to include off-premise personal property coverage, which can be applied to items in storage. However, you can usually only claim up to 10% of your personal property coverage amount.

For example, if you have $100,000 in personal property coverage for valuables inside your home, then your policy would generally cover up to $10,000 for belongings in your storage unit.

Protection Against Covered Perils

If your homeowners insurance covers items in a storage unit, there will usually be covered perils and uncovered perils. Insurance will likely cover damage done to items in a storage unit from theft, vandalism and weather events. However, if your possessions are damaged by mold or mildew while in a storage unit, your homeowners insurance may not cover the cost.

Coverage for Your Belongings vs. the Unit Itself

Homeowners insurance covers belongings stored in a storage unit but it doesn’t extend to the storage unit itself.

Recommended: Homeowners Insurance Terms

How do I File a Claim for Items in a Storage Unit?

Figuring out how to buy homeowners insurance is one important process for homeowners to understand. Learning how to file a claim is another. Here are some steps to keep in mind.

Immediate Steps to Take After Damage or Theft

If you notice belongings are destroyed or missing from your storage unit, alert the manager or security at the storage facility. They can secure the area and help protect it against further damage or theft.

If someone broke into your unit, report it to the police as soon as you can.

Documentation Needed for Your Claim

Your insurance company will probably require pictures of the damage or theft for your claim. You should also make a list of whatever was destroyed or stolen and provide their proof of value, if possible.

If your storage unit was broken into, you may also be asked to provide a screenshot of the security footage at the time of the break-in. The storage facility can provide that to you, along with paperwork and information needed to file a claim. Also get a copy of the police report, if you filed one.

Before submitting your claim, review your plan’s terms and conditions. A homeowners insurance guide can help you fully understand your policy.

The Claims Timeline and Process

Once the claim is submitted, your insurance company may assign an adjuster to work with you. Be sure to provide any documentation they request — it will help keep the process moving along. Note that claims can take anywhere from a few days to a few weeks to be processed, depending on their complexity.

What Is Not Covered in a Storage Unit?

Your homeowners insurance policy probably doesn’t cover everything in a storage unit. Here are some common exceptions.

Common Excluded Perils

Home insurance may exclude certain perils that can destroy whatever belongings you have in a storage unit. For instance, mold and mildew due to poor ventilation are often not covered under standard homeowners or renters insurance policies.

Other commonly excluded perils include flood or earthquake damage, damage from pests, and theft without forced entry.

Business Inventory or Property

Most homeowners insurance policies will not cover business inventory or equipment that is stored for sale or distribution within a storage unit. If you’re keeping items for a business in a storage unit, consider getting a separate business insurance policy or a business property endorsement.

High-Value Items Beyond Their Special Limits

If you are storing high-value items like art, jewelry, collectibles, or antiques in a unit, you may want to add scheduled personal property coverage to your homeowners insurance policy. This will cover the full value of your belongings without a deductible. However, note that you will likely need to get appraisals for any items you want insured.

Understanding Your Storage Unit Coverage Limits and Deductibles

Before filing a claim, it’s important to understand your storage unit coverage limits and deductibles.

The Off-Premises Coverage Sublimit

Most homeowners insurance policies have an off-premise coverage sublimit. This is the maximum amount the insurance company will pay for a specific type of loss. Off-premises coverage for valuables in a storage unit is usually limited to 10% of your personal property coverage.

Special Sublimits for Valuables

Oftentimes, homeowners insurance policies have special sublimits for certain high-value items. These sublimits cap the amount of money your insurance company will pay for a loss of those items, regardless of their actual value or your overall personal property coverage.

How Your Deductible Affects a Storage Unit Claim

A deductible is the amount that you pay towards a covered loss before your insurance company kicks in. Choosing a higher deductible may lower your premiums. However, you could end up paying more in upfront costs if you file a claim.

Recommended: Homeowners Insurance Costs Explained

The Takeaway

Does homeowners insurance cover storage units? Generally speaking, it does. Most policies will provide off-premise coverage for your personal property, which includes storage units. However, you may only be able to claim a percentage of your personal property coverage amount. Review your policy to make sure you have the right amount of protection in place.

If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.

Find affordable homeowners insurance options with SoFi Protect.

FAQ

How much are my belongings in storage covered for?

Belongings in storage are usually covered for a percentage of your personal property coverage, often around 10%.

Do I need to buy the insurance offered by the storage facility?

It depends. If you already have homeowners or renters insurance, your policy may already provide off-premise coverage for your personal property. You could also purchase a separate storage unit insurance policy from an independent insurer. If neither of those options work for you, you may decide to buy insurance from the storage facility.

Are my items covered against all types of water damage in storage?

Items in storage units are probably not covered against all types of water damage. Water damage for events like mold, flooding, or water damage due to poor maintenance are often not covered under standard homeowners or renters insurance policies. If you want to protect yourself against all types of water damage, you can purchase additional coverage.

Does my home insurance deductible apply to a claim for items in storage?

Your homeowners insurance deductible usually applies to a claim for items in storage under off-premises personal property coverage.

What should I do before putting valuable items into storage?

Before putting your valuable items into a storage unit, you should clean and dry all items properly and thoroughly. Dirt can contribute to the breakdown of certain materials over time, and not properly cleaning and drying items can lead to mold or mildew. It’s also a good idea to carefully wrap delicate items and cover furniture.

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photo credit: iStock/imaginima
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-019

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Global remittances are an important resource for anyone who needs to send money internationally. Global remittances are used to send money to an individual (or group) in another country, commonly to family members abroad. Remittances may be sent in a number of different ways, such through wire transfers, money transfer apps, cash pick-up services, and more recently crypto-related services. Below, we’ll cover how global remittances work, how much they cost, and how you can safely send money around the globe.

What Is a Global Remittance?

A global remittance is a transfer of money from one country to another. According to the Consumer Financial Protection Bureau, the U.S. government considers any electronic transfer of $15 or more from consumers in the U.S. to another country to be a global remittance.^[1]

While the term “global remittance” is often used to describe money that migrants send to family members in their home countries^[2], people make international money transfers for many reasons. For instance, you may need to send a global remittance to make an international purchase, support a loved one traveling aboard, fund international travel or education, or contribute to charitable organizations in other countries.

How Is a Global Remittance Different From a Wire Transfer?

An international wire transfer is a specific type of global remittance. It refers to an electronic payment that moves funds from a bank account in one country to a bank account in another country using the SWIFT network (a system that connects thousands of banks worldwide). Wire transfers are processed individually, verified in real time, and are typically irreversible once completed, which makes it a preferred transfer method for large or time-sensitive transactions.

A global remittance, by contrast, is defined as any type of international money transfer. This includes transfers made via wire transfer, an international ACH transfer (an electronic bank-to-bank transfer made using a network called the Automated Clearing House), or via cash transfer services (like Western Union) or through an online transfer platform. More recently, some groups are beginning to integrate crypto-related services as a means of sending payments across borders.

(Note that SoFi announced plans in June 2025 to introduce a global remittance service transmitting payments through blockchain networks.)

Importance of Global Remittance

Global remittances are an important part of the global economy. They are used by migrant workers to send money to family and friends in their home countries, helping them afford food, shelter, health care, and education. According to the International Fund for Agricultural Development, one in eight people rely on remittances worldwide.^[3] In some low-income countries, remittances make up 30% to 40% of the county’s domestic product (GDP).^[2]

International payments are also crucial to global commerce by facilitating trade between countries and allowing businesses to expand their operations beyond domestic borders. Businesses in the U.S. and throughout the world use global remittances for a wide range of activities, including paying overseas suppliers for goods, compensating international employees, and receiving payments from foreign customers.

How a Global Remittance Works: Step by Step

The process for making an international money transfer varies by method and provider, but this is generally looks like this:

1.    Register with a transfer service. If you’re not using your bank, select a transfer service that meets your needs and create an account. You may be required to verify your identity by providing your driver’s license, passport, or other government-issued ID.

2.    Provide the recipient’s information. Enter specific details about your recipient, such as their name, bank account details, and/or the location where they will pick up the money.

3.    Select the amount you’d like to send. Choose how much money you want to send and in what currency.

4.    Pay for the transfer. You can typically pay by debit card, credit card, or direct transfer from your bank. The total cost typically includes the transfer amount, transfer fee, plus an exchange rate markup (an additional percentage added to the mid-market exchange rate).

5.    Track the transfer. Providers typically give you an expected delivery date and time and a tracking code so you follow the status of your remittance.

Depending on the provider and payment/transfer method, the total time for this process can range from minutes to several business days.

Example of a Global Remittance

Here’s an example of a global remittance. Suppose Maria needs to send $200 to her family in Mexico:

•   Maria logs into an online remittance app and chooses to send $200.

•   She pays with her debit card.

•   The service charges her a fee of $3.99 and converts dollars into Mexican pesos at the day’s rate and does not add a markup.

•   Within a few minutes, her family in Mexico receives the equivalent of $196.01 in Pesos, available for cash pick-up at a nearby location.

Common Methods for Sending Global Remittances

There are several ways to send money internationally. Here are a few options to consider:

1.    Bank wire transfers: You can use a traditional bank or financial institution to initiate an international wire transfer.

2.    Online money transfer services: Digital platforms, like Wise and Xoom, facilitate online payments using your debit/credit card or bank account; the money can be sent to a recipient’s bank account or mobile wallet.

3.    Cash pick-up services: If the recipient doesn’t have a bank account, services like Western Union and MoneyGram allow senders to transfer money to a physical agent location, where recipients can pick it up as cash.

4.    Mobile money transfers: International payment apps, such as WorldRemit, allow individuals to store, send, and receive money via their mobile phones.

5.    International money order: If an electronic transfer isn’t possible, you can purchase an international money order (a prepaid, paper-based payment) and mail it to your recipient. They are available through banks and some retailers. The recipient can cash or deposit it in their local currency.

How Much Does a Global Remittance Cost?

According to a March 2025 analysis by the World Bank, the average fee for sending global remittances is 6.5% of the remittance amount.^[1] However, fees vary widely by transfer method. Here’s a closer look:

Global average	6.5%
Digital transfers	4.9%
Non-digital transfers	5%
Mobile operators	5%
Banks	14.6%

How to Choose the Best Remittance Service

When researching a remittance service to send money internationally, here are key some key factors to consider:

•   Fees and exchange rate: Banks and transfer services typically charge a transfer fee, which may be a percentage of the transfer amount or a flat fee. They also generally charge a markup on the exchange rate, which could be anywhere from less than 1% to 6%, or more. Be sure to consider both fees and markups when comparing services.

•   Transfer speed: A traditional bank wire transfer can take three or five days, while online platforms and cash transfer services can often complete transactions within minutes or hours.

•   Convenience and accessibility: Consider how your recipient will be able to receive the money. Do they have a bank account? Do they need cash in hand right away? Can they make an account on a payment app? This will help you determine the best way to send money overseas.

•   Customer support: A reputable transfer service will offer various ways to contact customer service, such as phone, online chat, or email.

Best Practices for Sending Money Abroad Safely

International transfers can be risky if handled improperly, so safety is crucial.

Tips for Secure Transactions

To send money internationally safely be sure to:

•   Use only licensed, regulated remittances providers (more on this below)

•   Triple-check the recipient’s details.

•   Verify all fees and exchange rates up front.

•   Set up two-factor (2FA) authentication.

•   Keep all receipts and confirmation numbers.

Common Scams to Avoid

Unfortunately, wire transfer scams are common. Here are some of the most popular schemes identified by the Federal Trade Commission (FTC) and how they work:

•   Apartment and vacation rental scams: The fraudster will ask you to wire money before touring a unit.

•   Fake check scams: You’re asked to deposit a bad check and wire the money before the check is found to be fraudulent.

•   Family emergency scams: Someone poses as a loved one in an emergency and asks you to wire money.

•   Prize scams: You’re led to believe you’ve won a prize but must first wire money for something such as taxes or shipping and handling.

•   Romance scams: Someone online pretends to be romantically interested in you and eventually asks for money.

•   Utility scams: A scammer poses as your utility company and threatens to shut off services if you don’t wire money ASAP.

How to Verify a Remittance Service

To find a legitimate service, make sure the provider:

•   Is fully licensed and regulated in the countries where it operates. This ensures the provider meets strict financial regulations set up to ensure secure transfers. In addition, they must follow compliance standards that prevent money laundering and other illegal activities. A provider’s licensing should be detailed on its website.

•   Has a trusted reputation in the industry. Read online reviews and look for consistently positive feedback about the provider’s reliability, customer service, and transparency. Be wary if you see complaints about delays, hidden fees, or poor communication.

•   Offers a high level of security. Look for a service that uses multi-level authentication, such as verification codes or biometric logins (like fingerprint or face scans). These security features make it harder for unauthorized users to access your account.

•   Is transparent about refund and cancellation procedures. A legitimate service will make it easy to find these terms before you confirm a transaction. Under federal law, you have at least 30 minutes to cancel the remittance transfer at no charge, unless the transfer has already been picked up or deposited into the recipient’s account.

Comparison of Leading Global Remittance Services

According to a September 2025 analysis by CNBC, these six international money transfer providers are among the top options:

Service	Standout Features	Delivery Options	Drawbacks
Remitly	Can choose Economy or Express transfer; over 350,000 cash pickup locations	Bank account deposit, debit card, mobile wallet, cash pickup	Express transfer fees can be high
Wise	No exchange rate markup	Bank account deposit, mobile wallet	No cash pick-up locations
OFX	No transfer fees for U.S. customers; no maximum transfer limit	Bank account deposit	Bank transfer only; no cash pickup locations
Western Union	More than 500,000 cash pickup locations globally	Debit card, mobile wallet, bank account deposit, cash pickup	Charges fees plus exchange rate markups
MoneyGram	Over 400,000 cash pickup locations globally	Bank account deposit, debit card, mobile wallet, cash pickup	Charges fees plus exchange rate markups
Xoom	Can use PayPal or cryptocurrency to fund transfers; large network of cash pickup sites	Bank deposit, debit card, mobile wallet, cash pickup	Charges fees plus exchange rate markups

The Global Impact of Remittances

Remittances are a big part of the global economy. Let’s take a closer look.

Statistics on Remittance Flows

Here are some recent stats on global remittances:

•   In 2024, global remittances totaled $905 billion.^[2]

•   Migrant workers typically send $200 to $300 every one to two months to families in their home countries.^[3]

•   More than one-third of remittances go to rural areas, helping to improve financial stability and food security in those regions.^[3]

•   Global money transfers are now the largest source of external finance for low- and middle-income countries.^[5]

Economic Impact on Developing Nations

The impacts of remittances on low- to middle-income countries include:

•   Reducing poverty by providing stable household income

•   Boosting household consumption

•   Promoting financial literacy

•   Reducing a household’s reliance on credit

•   Fueling local entrepreneurship

The Takeaway

Global remittances are more than routine money transfers — they are essential tools that help families stay connected, provide financial security, and keep international commerce moving. Whether you’re supporting loved ones, covering overseas expenses, or conducting business, global remittances offer a reliable way to move funds across boards safely and effectively.

SoFi Checking and Savings members can now send money to 30+ countries, including Mexico, India, Brazil, and more. Plus, make three international money transfers by 3/31/26 to earn $30 in rewards points.

SoFi worldwide money transfers are a fast, affordable, and simple way to transfer money to loved ones abroad — directly from the SoFi app.

Fast, easy international money transfers.

FAQ

What is the average cost of a global remittance?

The average cost of a global remittance is 6.5% of the amount of money being transferred, according to a 2025 analysis by the World Bank. However, cost can vary widely depending on the transfer method (bank transfers are generally more expensive than online transfer services) and where you’re sending the money.

How long does it take for a global remittance to complete?

International money transfers can take anywhere from a few minutes to several business days, depending on how you send the money. Transfers using a cash pick-up service or digital transfer platform often take only minutes or hours, while traditional bank wire transfers can take one to five business days.

Can I send a global remittance without a bank account?

Yes, it is possible to send a global remittance without a bank account. Some cash transfers services like Western Union allow you to pay for the transfer in person using cash. In addition, many online transfer platforms permit you to fund a transfer using a prepaid card or credit card with no need to link a bank account.

Are there any limits on a global remittance?

There are no federal limits on the amount of money that can be sent from the U.S. to other countries. However, remittance providers may set their own limits on how much you can send in a single transaction or per day or month. For example, transfer limits for banks typically range from $1,000 to $50,000 per transaction; while some transfer platforms limit you to $5,000 per transaction or $15,000 every 30 days.

How can I track my global remittance?

Remittance services typically provide tracking tools to monitor the status of your transfer. After sending, you’ll likely receive a confirmation number or tracking code, which you can use on the provider’s website, app, or through customer support. Some services also send emails or text updates to notify you when the funds are processed or received. Tracking helps ensure transparency and can provide peace of mind, as you’ll know where your money is and when it reaches your recipient.

What are the potential security concerns with remittance services?

While remittance services are generally safe, there are potential risks to be aware of. International money transfer scams are common, especially if you send money to someone you don’t know. Data breaches or weak cybersecurity practices could expose your personal or financial information. To reduce risks, always use licensed providers that require multi-factor authentication, confirm the recipient’s details carefully, and avoid sharing sensitive information on unsecured networks or suspicious platforms.

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Article Sources

1. Consumer Financial Protection Bureau (CFPB). What is a remittance transfer and what are my rights?.
2. Migration Data Portal. Remittances.
3. IFAD. 15 reasons remittances matter.
4. World Bank. Remittance Prices Worldwide Quarterly.
5. Niskanen Center. The 1% U.S. remittance levy: Impacts on Mexico & India.

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Photo credit: iStock/MicroStockHub

Global remittance services are available to SoFi members through SoFi Checking and Savings. SoFi Checking and Savings is offered by SoFi Bank, N.A., Member FDIC. Transfers are subject to the terms of the SoFi Bank Deposit Account Agreement in effect at the time of payment. Fees, exchange rates, and estimated delivery times will be presented prior to payment confirmation. Service availability may vary by country or recipient.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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An exit strategy is a plan to liquidate a financial investment or dispose of a business in order to maximize potential gains and minimize losses. Thus, an exit strategy for stocks, options, and other assets can be useful, whether prices have moved in the desired direction or not.

An exit strategy assumes that certain criteria, laid out in advance, have been met — and thus exiting the position by selling one’s stake will help preserve capital and/or minimize the risk of loss.

What Is an Exit Strategy?

Broadly speaking, an exit strategy refers to steps an individual takes in order to get out of a financial or business obligation, or even a personal one. For instance, an employee who’s interested in changing jobs may form an exit strategy for leaving their current employer and moving on to their next one.

What is an exit strategy in finance or business? It’s a plan crafted by business owners or investors that cover when they choose to liquidate their position in an investment. To liquidate means to convert securities or other assets to cash. Once this liquidation occurs, the individual or entity that executed the exit strategy no longer has a stake in the investment.

Creating an exit strategy prior to making an investment can be advantageous for managing and minimizing risk. It can also help with defining specific objectives for making an investment in the first place.

In other words, formulating your exit strategy beforehand, when investing in stocks, can give you clarity about what you hope to achieve.

Exit strategies often go overlooked, however, as investors, venture capitalists, and business owners may move ahead with an investment with no clear plan for leaving it.

How Exit Strategies Work

Investors use exit strategies to realize their profit or to mitigate potential losses from an investment or business. When creating an exit strategy, investors will typically define the conditions under which they’ll make their exit.

For instance, an exit strategy plan for investors may be contingent on achieving a certain level of returns when starting to invest in stocks, or reaching a maximum threshold of allowable losses. Once the contingency point is reached, the investor may choose to sell off their shares as dictated by their exit strategy.

A venture capital exit strategy, on the other hand, may have a predetermined time element. Venture capitalists invest money in startups and early stage companies. The exit point for a venture capitalist may be a startup’s IPO or initial public offering.

Again, all exit strategies revolve around a plan. The mechanism by which an individual or entity makes their exit can vary, but the end result is the same: to leave an investment or business when certain conditions are met.

Recommended: Stock Market Basics

When Should an Exit Strategy Be Used?

There are different scenarios when an exit strategy may come into play. For example, exit strategies can be useful in these types of situations:

•   Creating a succession plan to transfer ownership of a profitable business to someone else.

•   Shutting down a business and liquidating its assets.

•   Withdrawing from a venture capital investment or angel investment.

•   Selling stocks or other securities to minimize losses.

•   Giving up control of a company or merging it with another company.

Generally speaking, an exit strategy makes sense for any situation where you need or want to have a plan for getting out, whether you’re investing online or through other channels.

Exit Strategy Examples

Here are some different exit strategy examples that explain how exit strategies can be useful to investors, business owners, and venture capitalists.

Exit Strategy for Investors

When creating an exit strategy for stocks and investing, including how to buy stocks, there are different metrics you can use to determine when to get out. For example, say you buy 100 shares of XYZ stock. You could plan your exit strategy based on:

•   Earning target from the investment

•   Avoiding a loss on the investment

•   How long you want to stay invested

Say your goal is to earn a 10% return on the 100 shares you purchased. Once you reach that 10% threshold you may decide to exit while the market is up and sell your shares at a profit. Or, you may set your maximum loss threshold at 5%. If the stock dips and hits that 5% mark, you could sell to head off further losses.

You may also use time as your guide for making an exit strategy for stocks. For instance, if you’re 30 years old now and favor a buy-and-hold strategy, you may plan to make your exit five or 10 years down the line. On the other hand, if you’re interested in short-term gains, you may have a much smaller window in which to complete your exit strategy.

Exit strategies can work for more than just stock investments. For instance, you may have invested in crowdfunding investments, such as real estate crowdfunding or peer-to-peer lending. Both types of investments typically have a set holding period that you can build into your exit plan.

Recommended: 5 Investment Strategies for Beginners

Exit Strategy for Business Owners

An exit strategy for business owners can take different forms, depending on the nature of the business. For instance, if you run a family-owned business then your exit strategy plan might revolve around your eventual retirement. If you have a fixed retirement date in mind your exit plan could specify that you will transfer ownership of the business to your children or sell it to another person or company.

Another possibility for an exit strategy may involve selling off assets and closing the business altogether. This is something a business owner may consider if the business is not turning a profit, and it looks increasingly unlikely that it will. Liquidation can allow a business owner to repay their creditors and walk away from a failed business without having to file bankruptcy.

Exit Strategy for Startups

With startups and larger companies, exit strategies can be more complex. Examples of exit strategy plans may include:

•   Launching an IPO to allow one or more founders to make an exit

•   A merger or acquisition that allows for a transfer of ownership

•   Selling the company

•   Liquidating assets and shutting the company down

If a founder is ready to move on to their next project, they can use an IPO to leave the company intact while extricating themselves from it. And angel investors or venture capitalists who invested in the company early on also have an opportunity to sell their shares.

Startup exit strategies can also create possible opportunities for some investors. IPO investing allows investors to buy shares of companies when they go public.

The mechanics of using an IPO as an exit strategy can be complicated, however. There are IPO valuations and regulatory requirements to consider.

It’s important for startup founders to know how to value a business before taking it public to ensure that an IPO is successful. And early-stage investors may have to observe IPO lock-up period restrictions before they can sell their shares.

5 Types of Exit Strategies

There are different types of exit strategies depending on whether you’re an investor, a business owner, or a venture capitalist. Some common exit strategies include:

1. Selling Shares of Stock

Investors can use an exit strategy to set a specific goal with their investment (say, 12%), reach a certain level of profit, or determine a point at which they’ll minimize their loss if the investment loses value. Once they reach the target they’ve set, the investor can execute the exit strategy and sell their shares.

2. Mergers and Acquisitions

With this business exit strategy, another business, often a rival, buys out a business and the founder can exit and shareholders may profit. However, there are many regulatory factors to consider, such as antitrust laws.

3. Selling Assets and Closing a Business

If a business is failing, the owner may choose to liquidate all the assets, pay off debts as well as any shareholders, if possible, and then close down the business. A failing business might also declare bankruptcy, but that’s typically a last resort.

4. Transferring Ownership of a Business

This exit strategy may be used with a family-run business. The owner may formulate an exit plan that allows him to transfer the business to a relative or sell it at a particular time so that he or she can retire or do something else.

5. Launching an IPO

By going public with an IPO, the founder of a startup or other company can leave the company if they choose to, while leaving the business intact. As noted, using an IPO as an exit strategy can be quite complicated for business founders and investors because of regulatory requirements, IPO valuations, and lock-up period restrictions.

Why Exit Strategies Are Important

Exit strategies matter because they offer a measure of predictability in a business or investment setting. If you own a business, for example, having an exit strategy in place that allows you to retire on schedule means you’re not having to work longer than you planned or want to.

An exit strategy for investors can help with staying focused on an end goal, rather than following the crowd, succumbing to emotions, or attempting to time the market. For example, if you go into an investment knowing that your exit plan is designed to limit your losses to 5%, you’ll know ahead of time when you should sell.

Using an exit strategy can help prevent losses that could occur when staying in an investment in the hopes that it will eventually turn around. Exit strategies can also keep you from staying invested too long in an investment that’s doing well. The market moves in cycles and what goes up eventually comes down.

If you’re on a winning streak with a particular stock, you may be tempted to stay invested indefinitely. But having an exit strategy and a set end date for cashing out could help you avoid losses if volatility sends the stock’s price spiraling.

How to Develop an Exit Strategy Plan

Developing an exit strategy may look different, depending on whether it involves an investment or business situation. But the fundamentals are the same, in that it’s important to consider the specific conditions that must be met:

•   What form an exit will take (i.e., liquidation, IPO, selling shares, etc.)

•   Whether an exit is results-based or time-based (i.e., realizing a 10% return, reaching your target retirement date, etc.)

•   Key risk factors that may influence outcomes

•   Reasons and goals for pursuing an exit strategy

If you’re an individual investor, you may need to formulate an exit plan for each investment you own. For instance, how you exit from a stock investment may be different from how you sell off bonds. And if you’re taking on riskier investments, such as cryptocurrency, your exit strategy may need to account for the additional volatility involved.

For business owners and founders, exit strategy planning may be a group discussion that involves partners, members of the board, or other individuals who may have an interest in the sale, transfer, or IPO of a company. In either situation, developing an exit strategy is something that’s best done sooner, rather than later.

The Takeaway

Investing can help you build wealth for the long-term, and an exit strategy is an important part of the plan. It allows you to decide ahead of time how and when you’ll get out of an investment, and could help you lock in returns or minimize losses.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.

Invest with as little as $5 with a SoFi Active Investing account.

FAQ

What are different exit strategies?

Examples of some different exit strategies include selling shares of a stock once an investor realizes a certain return or profit, transferring ownership of a family business so an owner can retire, or selling all the assets and closing down a failing business.

What are the most common exit strategies?

The most common exit strategies depend on whether you’re an investor, the owner of an established business, or the founder of a startup. For investors, a common exit strategy is to sell shares of stock once they reach a certain high or low. For owners of an established business, a common exit strategy is mergers and acquisitions, because doing so is often favorable to shareholders. For founders of startups, a common exit strategy is an initial public offering (IPO).

What is the simplest exit strategy?

For an investor, the simplest exit strategy is to sell shares of stock once they reach a certain profit or target level of return. At that point they can sell their shares for more money than they paid for them.

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SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation Procedures.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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