There are a lot of things to consider when moving. You need to prep packing materials, consider transportation, and prepare the papers and documents you need to settle in your new home. The question of whether to get moving insurance or not is also part of the checklist.
Moving insurance comes with its pros and cons. To help you decide, here is a quick rundown of what moving insurance is and its different types. Armed with this knowledge, you can make a well-thought decision once you hire furniture moving services.
What is Moving Insurance?
Moving insurance is a policy that provides protection for your possessions as the movers transport them to your new home. In case your items are lost or damaged, you receive reimbursement up to a certain amount—depending on what type of insurance you purchase.
Technically, movers cannot sell you insurance. They offer moving coverage instead, which works similarly to insurance but with more limitations. If you would like to get moving insurance, you can only get them from third-party insurance providers.
Different Kinds of Moving Insurance
There are different types of moving coverages and insurances you can avail. If you are planning to hire movers, the following are the most common insurance options.
Basic coverage is also known as released value protection. The biggest perk of using this coverage is that you do not need to pay extra. It is already part of your quote.
However, it only offers minimal protection. It often provides 60 cents per pound for lost items. Hence, if you have a five-pound computer that gets damaged, you only get $3 from it. This amount is not enough for a lot of people, especially for those who are traveling long-distance.
If, however, you are only moving nearby and do not have a lot of high-value possessions, basic coverage might suffice for your move.
The other names for full coverage are expanded valuation or full value protection moving insurance. Interstate movers are required to offer this option to clients. It is popular among customers because it has a significantly higher coverage compared to released value protection.
In this option, movers are more liable for reimbursing the costs of the lost or damaged possessions in transit. If only a few items are impaired, they have the option to repair them, replace them, or pay for their repairs.
However, in a situation where all of your possessions are impaired in transit, you are typically entitled to $6 per pound. This means that if your possessions weighed 3000 pounds, you would be reimbursed $1,800.
Expectedly, you will have to pay more for this kind of coverage. It usually amounts to 1% of the estimated value of your possessions. Hence, if the items are valued at $1,000, you pay $100 for full coverage.
Weight determines basic and full coverage. What about small items with high values, like jewelry and antiques? In this case, people usually go to a third-party insurance provider. This option is also called separate liability coverage.
The moving company still takes responsibility for the coverage you purchase from them, and the third-party insurance provider will cover up the rest of the loss. The amount of reimbursement and what is covered will depend on the policy that you get.
Third-party insurance usually offers wider coverage, including natural disasters, mechanical or electrical accidents, or storage-related incidents. Hence, it is not uncommon for people to get additional insurance for extra protection.
What is Covered in Moving Insurance?
When it comes to getting moving insurance, it is paramount that you know what is and what is not covered. Thus, you need to have a lengthy discussion with your movers and the insurance company.
Bear in mind that certain scenarios can void your mover’s liability. These include:
- Packing items by yourself
- Damage from natural disasters
- Not informing your mover of any high-value items
- Packing perishable, dangerous, or hazardous items without informing the movers
To avoid stress and wasted resources down the road, make sure to communicate clearly with your movers about your expectations and find out the details of their moving coverages.
Should You Get Moving Insurance?
The answer depends on the value of your possessions and the distance of your move. If you have treasured items that you want to protect, it is recommended to get moving insurance.
To give you peace of mind and a smooth move, you must partner with a reliable moving company. The movers will clearly lay out the terms of their coverage and help you find the right insurance option for you. Indeed, with the right movers and insurance option, you can feel assured that your items will safely reach their new home.