Everything You Need To Know About Moving Insurance
If you have at least once in your life been actively involved in a move, you must have heard about moving insurances. Just like any other type of insurance, moving insurance covers losses or damages caused to certain items – in this case, the items you plan on having transported to your new address. However, there are some notable differences between regular insurance and moving insurance we are going to discuss shortly. One thing is for sure: no matter how long or brief your move, you will probably want to make sure that all of your prized possessions will be well taken care of. Having something to rely on as a backup plan will help you sleep better at night in the weeks prior to the move.
What Is Moving Insurance?
Moving insurance is something that movers offer in the form of valuation. Moving companies promise their clients that they will receive compensation in the event of an unexpected accident that may lead to the loss, partial damage or complete destruction of their items. Since movers are not legally certified to sell insurance, nor are they governed by federal laws, the insurance they offer is often times referred to as valuation, and it is generally regarded and accepted as a form of insurance.
Types Of Moving Insurance (Valuation)
All reputable moving companies must provide two specific types of valuation when moving out of state, but there are also companies that choose to offer these options for local and state moves as well. The two main forms of moving insurance are, as follows:
- released value protection, which is the simplest coverage option in the industry. Clients are mot charged for the protection of the released value, but they will need to ask for the coverage and agree to it through an official contract. It offers minimal coverage, with the movers assuming liability for around 60 cents per pound for each item that needs to be transported. A heavy 300-pound refrigerator that may suffer damages during transportation will require the moving company to compensated the owner with $180, while the market value of a refrigerator is $800 on average.
- Released value protection means any lost or broken items will not be replaced or fixed when filing a claim. Expect to be compensated 60 cents per pound per item.
- full value protection is the second protection solution you could use for the items you plan on moving. You will enjoy more comprehensive coverage in the event of unfortunate occurrences. However, expect to be asked to pay a premium prior to the move. It is also possible to get an insurance policy that features deductible expenses. By choosing this particular type of mover insurance, you will be making the mover fully responsible for the complete replacement of any damaged items. You will be in charge of declaring what you believe the respective items are worth, per pounds. You will pay a premium for the amount of the coverage, with a minimum value you will have to claim on your items. You could be asked to pay between $4 and $6 / pound.
- Filing a full value protection insurance claim will result in one of several options: the mover will fix the broken items for you, they will have them replaced with items of a similar value, or they will issue payouts for the repair costs or the items’ market value. Keep in mind there are no deductibles under this particular form of mover insurance.
- Also, moving companies have the legal right to limit their liability when it comes to covering expensive items. Items of extraordinary value are worth at least $100 per pound, and they could be anything from shoes to jewelry. Make sure you have this particular aspect talked though and agreed upon before signing off any official papers. Remember the more expensive items you will need to be moved, the bigger your premium will be.
Does Homeowners Insurance Cover Your Move?
Shortly put and generally speaking, probably not. It is best not to rely on renter or homeowners insurance to cover your prized possessions during the move, especially if you plan on breaking the policy. Moving locally and holding on to the same policy, on the other hand, means you may be in luck, as the insurance may cover your transitioning items. Just make sure you have this double checked with your insurer. More often than not, your items may solely be covered for the time they are in transit, which means items that may have been damaged during truck loading will not be covered.
In order to choose the right type of mover insurance, carefully study your exact needs and requirements, including special/fragile/expensive items you may need to move and make sure you ask for advice from professional movers.