Accounting for geometry-induced changes in the electronic distribution in molecular simulation is important for capturing effects such as charge flow, charge anisotropy, and polarization. Multipolar force fields have demonstrated their ability to correctly represent chemically significant features such as anisotropy and sigma holes. It has also been shown that off-center point charges offer a compact alternative with similar accuracy. Here, it is demonstrated that allowing relocation of charges within a minimally distributed charge model (MDCM) with respect to their reference atoms is a viable route to capture changes in the molecular charge distribution depending on geometry, i.e., intramolecular polarization. The approach, referred to as "flexible MDCM" (fMDCM), is validated on a number of small molecules and provides accuracies in the electrostatic potential (ESP) of 0.5 kcal/mol on average compared with reference data from electronic structure calculations, whereas MDCM and point charges have root mean squared errors of a factor of 2 to 5 higher. In addition, MD simulations in the NVE ensemble using fMDCM for a box of flexible water molecules with periodic boundary conditions show a width of 0.1 kcal/mol for the fluctuation around the mean at 300 K on the 10 ns time scale. For water, the equilibrium valence angle in the gas phase is found to increase by 2° for simulations in the condensed phase which is consistent with experiment. The accuracy in capturing the geometry dependence of the ESP together with the long-time stability in energy conserving simulations makes fMDCM a promising tool to introduce advanced electrostatics into atomistic simulations.