Chances are the importance of moving insurance has crossed your mind while preparing for your move. However, in many cases, people take it for granted that their moving contract will actually include proper insurance. Most often companies won’t even include a basic insurance plan in the contract. What you do get is valuation, which people often mistake for insurance. We will provide you with a handy guide on why insurance is important when moving and how to pick the insurance plan that meets your needs.
Choosing the right moving company
It would be a good idea to have insurance in mind even as you are looking for a moving company. Experts suggest approaching several different companies and seeing what they offer. You might want to ask them about the insurance plans they offer already at this stage. Once you’ve weighed the pros and cons of all of the offers you got, you are in the right headspace to choose the one that will suit you best. Your best bet is to look into a moving company that provides different services when organizing a move. This way you will know you are covered no matter what, even for things you may not have figured you’ll need.
All you should know about moving insurance
What is valuation coverage?
Valuation coverage is the thing mentioned earlier that often gets confused for proper insurance. It represents the extent to which the moving company will hold themselves responsible in case something happens to your belongings while in their care. Valuation coverage is essentially the level of liability the movers are willing to accept for any damaged or lost items. These different levels of liability are exactly why insurance is important when moving. There are lots of things that can happen that valuation won’t cover. So, instead of analyzing the valuation coverage of your particular contract, you might want to purchase moving insurance.
There are two types of valuation coverage – released value protection and full value protection. However, neither of these two will provide you with full compensation for damaged or lost items. They are also not as binding as insurance is.
Moving insurance – is it necessary?
Depending on what you’re transporting, some people may be comfortable moving without insurance. However, if you want to ensure all your belongings get to your new home safe and whole, you might want to consider moving insurance. The importance of moving insurance is even higher if you are moving something that is truly valuable and/or fragile. If you have something bulky and difficult to move such as a piano or pool table. The same goes for any antique or delicate furniture pieces as well as art. Getting on an insurance plan will give you peace of mind necessary to focus on the other aspects of the move that might require your attention. This is particularly true if you are preparing for a long-distance move.
Types of moving insurance
Moving insurance policies will cover your belongings in case something happens to them in transit or in storage, if applicable. However, there are two different types of moving insurance:
- declared value protection
- full replacement liability.
Declared value protection
Under this insurance plan, in the case of something getting lost or damaged during the move, you get an amount of money based on the depreciated value of the item in question. Your whole shipment will get a dollar amount attached to it. This is something you determine and it’s there for the insurance company to have the value of your belongings in writing. Once this is determined, the weight of the shipment is multiplied by $1.25 and that is the amount of money your movers are liable for. Under this plan, the movers charge you additional money for each $1000 of their liability. It does constitute an additional expense to your moving contract. However, it won’t be a surprise if it is part of your plan when deducting your moving expenses. An insurance plan like this will protect you. This way you will be able to collect full value for most of your belongings in case of damage.
Full replacement liability
This insurance plan is the most thorough one as it fully covers all of your items. This is exactly the kind of plan you might want if you’re moving something like a piano or art discussed above. If you can tell your belongings are worth more than $1.25 dollars per pound, make sure you choose this option instead. The minimum charge under this insurance plan will be somewhere between $3.50 and $4.50 multiplied by the weight. This insurance plan comes with a deductible that you will have to pay in case of damage or loss.
The importance of moving insurance for electronics and other extraordinary value items
In some cases moving companies will limit their liability for what is called extraordinary value items. These include anything that is valued at more than $100 per pound. Think of computers, software, (video) cameras, antiques, rugs, art, etc. If you can, you should try to move these pieces yourself instead of trusting them with a moving company. If not, you should be upfront about these items with your moving company. A good idea in this case especially (but also just in general) is to make an inventory of the belongings you are moving.
Should you purchase moving insurance?
All things considered, the importance of moving insurance can be determined on a case by case basis. Depending on what you’re moving, you can decide not to purchase moving insurance at all. On the other hand, if you’d like to tick this worrying about your belongings off your list, purchasing the right insurance policy will surely give you this peace of mind.