What You Need To Know About Moving Insurance

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What You Need To Know About Moving Insurance

7012742795 • May 27, 2022

When you move, you expect all your belongings, prized possessions, and memories to arrive at the new place in good condition. But what if they don’t? Although moves are primarily safe, problems such as road accidents, natural disasters, or even theft do happen. They may damage or even cause some of your belongings to be lost. Who is liable for this? What can you do to minimize the risk? If these concerns are ringing in your ears, read on to understand more about moving insurance.

What Is Moving Insurance?

Moving insurance is a policy that compensates for losses or damages that happen to your belongings during a move. It is a way to reduce the risk of moving and protect your possessions during the move. It can be offered by a moving company or a third-party insurance company. The amount and extent of reimbursement are dependent on the type of policy that is agreed on.

Moving Insurance Options

When you hire movers, your mover is responsible for the value of your belongings. However, their liability levels depend on the type of moving insurance you decide on. Thus, it will determine the reimbursement amount should your belongings get damaged or lost. There are three types of Moving insurance to consider:

● Full Value Protection

This is a comprehensive policy where your mover is responsible for replacing the total value of damaged or lost goods in your entire shipment. Your mover can either repair the item, replace the item, or provide cash for the cost of repairing or replacing the item. It has broader coverage, and it also costs more.

● Released Value Protection

This is the basic policy that movers offer with no additional cost. Protection is minimal such that reimbursement is up to 60 cents per pound per article. Compensation is based on the weight of the item rather than value. For example, if your computer is valued at $500 and weighs five pounds, you will only receive three dollars if it is damaged or lost (60 cents x 5 pounds).

● Separate Liability Coverage

If you choose Released value protection, some movers may offer extra coverage through a third-party insurance company. This is at an additional charge. In the event of damaged or lost goods, the movers are still liable for the released value protection, which is 60 cents per pound per article. At the same time, the additional policy will reimburse the rest of the loss up till the policy limits.

What is NOT Covered – Important to Note

Besides knowing what the various options cover, you need to know what they do not cover. Do take note of these actions, which may limit your mover’s liability.

● When hazardous or perishable materials are packed into your shipment without informing your movers.

● When you pack your own items to save some money, should these items be damaged in the process, it may be challenging for you to submit your claim. It is a good idea to leave it to the professional packers.

● When movers are not informed in writing about items of significant value

It is essential to know your rights and responsibilities to reduce possible disputes in claims.

What is the Cost of Moving Insurance?

The cost varies based on the type of policy you choose and the total value of your belongings. The released value option usually comes free with your moving agreement. Full value protection may have you paying about 1% of the total estimated value of your possessions. In comparison, the cost from a third-party insurance company may lie between 1% - and 5%.

Consider the value of your belongings and the distance of the move to help decide if you need moving insurance. It might just help you sleep better at night.

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