Moving Insurance – It Pays to Be Protected

Nothing compares to seeing everything you own crammed into a truck. Naturally, you are concerned and unsure of how your belongings will be when they get to your new house. This is where moving insurance can help you sleep at night until everything is safely delivered and in its proper place, similar to how you obtain health insurance coverage to protect your own health. Even the most cautious individuals or moving companies experience accidents. The information that follows is a primer on how to keep your possessions safe while moving.

Do you need moving insurance?

You have most likely given this question some serious thought. You have every right to be hesitant about giving strangers access to everything in your home. If you are moving locally, you might not be as worried, but if you are moving a long distance, it is definitely worth considering what might happen if they lose, harm, or destroy your priceless possessions.

In some situations, getting moving insurance is advised. If you have a lot of valuables or are moving to a state that might be affected by a hurricane during hurricane season, for example, the likelihood of weather-related damage to your possessions is higher. You should at least think about getting moving insurance for any of those reasons.

Do you need moving insurance?

Obtaining moving insurance is suggested in some circumstances. The likelihood of weather-related damage to your possessions is higher, for example, if you have a lot of valuables or are moving during hurricane season to a state that might be affected. If any of those situations occur, you ought to at the very least consider purchasing moving insurance.

Thus, one of the most important questions to ask before hiring a moving company is what kind of liability it provides. Make sure your belongings are secured in case there is a mishap while you are moving. Your expert moving company ought to give you the option of choosing from a range of liability coverage options.

How much does moving insurance cost?

Your choice of coverage type and other significant factors, such as the value of your possessions, will affect the cost of your moving insurance. As your coverage increases, you should prepare for higher costs. Your moving contract will typically include the minimal insurance coverage known as released value protection, as we explain below. The level above the released value option is the full value protection moving insurance option. If you choose it, be prepared to pay about 1% of the estimated total cost of your personal effects. Depending on the estimated value of your belongings, a third-party insurer may charge you anywhere from 1 to 5 percent of that amount as moving insurance.

Does my homeowners policy cover the move?

Before purchasing moving insurance, make sure you are covered by your homeowner's insurance policy. Don't just assume that your personal belongings will be covered during a move by your renters' or homeowners' insurance. Every carrier has a unique set of policies. Even though a typical homeowners insurance policy will typically cover personal property and reimburse you for roughly 50% to 70% of the value of your possessions if they are damaged in a disaster, the majority of homeowners insurance policies do not cover goods that are in transit. Only while the movers are packing your household items in your home may certain insurance policies provide coverage.

What are your insurance options?

The full cost of the items you ask your mover to move is on you. However, there are different levels of liability. Understanding the differences and your rights and obligations as a consumer will help you select the right level of coverage and assign value to your belongings.

All movers must offer two different types of coverage to clients for out-of-state moves in accordance with federal regulations. An additional choice is third-party insurance coverage.

Released value protection

The least expensive option is released value protection, which can be purchased for as little as 60 cents per pound. This implies that you will be compensated up to 60 cents per pound for any item you donate, including everyday items like paperclips and family heirlooms. In other words, the weight times 60 cents will be used to determine the amount of damage if your valuable object weighs 10 pounds and is damaged during the move. Ten times sixty cents. This sum ($6) would be the amount for which the moving company would be liable, regardless of how much the item originally cost you. For a more concrete example, the moving company will only be liable for $219 under this basic insurance if the movers break your $1,400 refrigerator, which weighs 365 pounds, while it is being moved.

By signing a statement on the bill of lading or contract, which is provided as part of the standard service and is provided at no additional charge, you must expressly agree to it. Just keep in mind that this option will only compensate you for the item's weight, not its actual value. Furthermore, if you do not select released value, your items will be transported automatically at the full value protection level of liability, and you will be charged accordingly.

Full-value protection

Of course, you might question why you are paying someone so much more to move your belongings if they are only worth 60 cents per pound.

The total value of your material possessions is unquestionably greater than 60 cents per pound. As a result, long-distance movers also offer "full-value protection." Your evaluation of the contents being transported will determine the coverage. If you determine that the total value of your belongings being shipped is $50,000, full-value protection will cost you about $500 because the price is based on about 1 percent of the valuation.

In the event that any items are misplaced, destroyed, or damaged during the move, the moving company has two options thanks to full-value protection. This is also referred to as "full replacement value." "The moving company, not the customer, decides how the property will be repaired.

The item can be replaced with one of like kind by the moving company, or it can be repaired to return it to its pre-damage state. To put it simply, the moving company won't buy a new washing machine if your two-year-old one is broken. The fair market value of a washing machine that is two years old will probably be given to you.

Another caveat:Unless otherwise specified on the shipping documents, movers are not required to reimburse you for any item that is valued at more than $100 per pound. The federal agency that regulates moving companies, the Surface Transportation Board, sets this. For instance, if a bracelet weighs four ounces and has a value of over $25 ($100 per pound), it must be listed on the shipping documents; otherwise, it won't be covered if it is misplaced, broken, or destroyed during the move.

If you decide to purchase this insurance, you will need to make an inventory of your possessions, list everything that is worth more than $100 per pound, and make sure it is listed on the shipping documents in order for you to be covered. Once you start going through your belongings, this task might become too much for you.

State insurance laws do not apply to released value or full-value protection. They are governed by the Surface Transportation Board of the United States since they are federal. S. Department of Transportation

Expanded mover coverage

You might choose to upgrade your insurance depending on how much risk you are willing to take. The consumer has a variety of options.

You can enquire about other options for valuation from the moving companies from which you are receiving quotes. It is not insurance if your moving company covers your belongings. Insurance sales are prohibited by law by moving companies. Instead, you are funding the liability that has been stated. In other words, you are determining the boundaries of your moving company's responsibility for any damage, loss, or destruction to your possessions.

A few movers provide expanded estimates. You can specify a per-pound amount for your possessions using declared value. If, for instance, you determine that each pound of your possessions is worth $6 and your entire shipment weighs 10,000 pounds, you are assigning a value of $60,000 to it. If the entire shipment was damaged or lost, you would only be entitled to that amount. Individual items would be exchanged for equivalent ones, such as a two-year-old washing machine for a two-year-old washing machine. This needs to be taken into account because things like used clothing have little actual cash value.

You can also inquire if the moving company provides lump sum value, also known as the assessed value. The only real difference in the coverage is that the consumer chooses the amount by value rather than weight. This is preferable if you have a lot of lightweight, high-value items that are small and compact.

What is valuation?

Under their "valuation coverage," moving companies may provide a range of different levels of liability. The amount of responsibility that your moving company is willing to accept in the event that your possessions are misplaced or damaged during a move is known as "valuation coverage. How much the movers will pay you back if your belongings are misplaced or harmed while in their care is determined by each level of liability. All of these liability options only offer a certain amount of protection. Note that valuation coverage is not the same as insurance. Value coverage is what most people mistakenly refer to as moving insurance.

What’s not included in valuation coverage

What is not covered is just as significant as what is covered.

Mover liability for items in boxes they did not pack is eliminated with valuation coverage. You are probably not going to be covered for damage to anything inside the box unless the box exhibits obvious damage. Natural disasters like fire, hurricanes, tornadoes, windstorms, hail, etc. are also not covered. You are not covered if items are harmed while being stored in a location not under the control of the moving company.

Third-party moving insurance options

Relocation insurance is a service provided by some insurance companies. These policies are comparable to the lump sum and declared value protection that the moving company might provide. If the moving company they are using does not provide this kind of valuation coverage, some people prefer to have a third party insure their possessions.

Additionally, you can purchase total loss coverage, which will exchange all of your possessions in the event of a catastrophe like a fire, theft, truck accident, etc. This coverage only applies in the event that all of your possessions are lost, so individual items are not covered.

Moving insurance options if you DIY your move 

If you're transporting your possessions in your car, a rental car, or a moving truck, first determine whether your homeowners or renters insurance policy covers them. Then, take relocation insurance into account. It can close the coverage hole when you move by acting as a separate liability policy. You can purchase the rental truck insurance if you rent a truck. The rental company might provide insurance for the truck, the cargo, and every passenger. Your choice of coverage level will largely determine the answer. The most popular types of moving insurance for rental trucks include accident damage, cargo protection, medical and life insurance for the passengers, and supplemental liability coverage for accidents you cause. Typically excluded are acts of theft, harm from inadequate packaging, and normal cargo shifting.

Tips for protecting your move

• It won't harm you, especially if you have insurance. This will enable you to present a before-and-after image of your damaged item in the event that you need to submit a claim.
• Packing is one of your actions that could reduce the liability of your mover. If you're packing your own belongings, use the proper boxes and packing materials to ensure that everything is packed as securely as you can. Do let your movers know which boxes contain hazardous, dangerous, or perishable items (proper labeling is important for this).
• Any valuables should be disclosed in writing. This might include any of your priceless belongings, such as heirlooms, works of art, antiques, jewelry, or priceless collections.
• You have nine months to submit a written claim after the delivery date or the date on which the shipment should have been delivered.
• For moves within the state, each state may have its own laws and rules. If you're relocating within the same state, contact the state moving association, your county or local consumer affairs office, or both.

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