If you plan on hiring a moving company, there is a high chance that the company will offer you moving insurance. Insurance can come in handy if your belongings are damaged or lost during the move.
However, there are many different types of moving insurance for different moves. Luckily, in this article, you’ll find all the necessary information you need to know before getting moving insurance.
What Is Moving Insurance?
Moving insurance is different from traditional insurance. Instead, moving companies provide a service known as valuation. A moving company’s valuation serves as a form of insurance, covering your possessions in the event of damage or loss.
As a result, moving companies are exempt from the same federal rules and regulations governing other forms of insurance companies. So, in the end, valuation is just like insurance in that it protects you in the event of a loss.
There are a variety of movers’ insurance plans to choose from, depending on the length of your move. If you’re planning a cross-country move, federal laws protect your belongings.
The Federal Motor Carrier Safety Administration of the United States Department of Transportation creates these regulations. They hold cross-state movers liable for damage to goods they transport.
Types of Moving Insurance
Every moving company must have a couple of different moving insurance options.
Released Value Protection
This is the most basic form of insurance that moving companies provide. Released value protection is free, but consumers must request it and contractually agree to it before moving companies provide it.
Only a limited amount of coverage is provided by free release value protection. For example, a typical moving company liability rate is only 60 cents per pound of cargo per item. This means that if an item that weighs 30 pounds is damaged, you will receive $18 in compensation.
Moreover, displaced, lost, or damaged items will not be replaced or repaired if you submit a claim if they are covered by released valuation protection.
Full Value Protection
Full value protection is another option for securing your personal items. You will have to pay a premium upfront for this coverage, but it is more inclusive than the released value. Co-payments are also standard in many full-value insurance policies.
If you choose full value protection, the moving company will be responsible for the full substitute value of the items they move. You, the customer, will assert the pound value of your items and then pay the premium based on that value.
With many moving companies offering full value protection policies, you must usually claim a minimum value for your items. In some states, the lowest amount is usually around $4 and $6 per pound of household items, depending on the state’s regulatory requirements.
Because the minimum declared value on your items is $6 per pound, relocating 5,000 pounds means your belongings will be worth $30,000 when all is said and done. Of course, if your cargo is lost or damaged, you will be compensated for the total amount.
Most moving companies have three options to settle a claim under full value protection. You can either request a repair, get a substitute for the original, or receive a payment for the repair costs or the item’s current market value.
Moving companies have the right to restrict their responsibility for high-value objects under full value protection. Extraordinary value is a term used to describe these objects.
Any item worth more than $100 per pound, such as antique furniture or $1,500 sneakers, is considered high value. You should check with your moving company ahead of time to know if these items are covered before the move takes place.
Most movers will give you the option of purchasing additional insurance to protect your pricey possessions. Unfortunately, the more valuable items you own, the higher your insurance premiums or deductibles are likely to be.
External Insurances
Some may wonder whether moving insurance is adequate protection for their possessions during a move, and if so, whether they should get additional insurance. In the end, it all comes down to how much your possessions are worth.
Furthermore, you shouldn’t assume that your homeowners’ or renters’ insurance includes your personal items during relocation.
The homeowners‘ or renters‘ insurance plans will not cover your move to a new residence if you are going to break your policy. However, if you’re moving locally and keeping the same policy you had before, your possessions may be covered while in transit if you do so. However, you must verify this, as it may not always be the case.
Homeowners’ and renters’ insurance policies often have exceptions. For example, some insurance policies only cover items while being transferred. As a result, if anything were to break during the transfer from the van to your new residence, the insurance would not cover it.
Try to check with your insurance company to understand what exactly you’re covered for. You don’t want to find out too late that some of your favorite items aren’t covered by your insurance policy.
Where to Get Moving Insurance
You can get moving insurance through the moving company of your choice. This can be quickly done online. In this way, you can also check the different insurance plans a company has and decide which one is right for you.
Companies like Relocation Insurance have websites where you can get different types of insurance policies. In addition, the company allows you to hire a licensed and reputable moving company to assist you in your relocation.
Then, to get a free, no-obligation estimate on moving insurance, simply click the “Quick Quote” button. If you’re not sure about the value of your personal items, this is a great and free way to get an estimation.
The company offers more types of insurance than most moving companies. Besides the two aforementioned types of value protection, they provide personal and business insurance, small move insurance, cargo insurance, storage insurance, etc.
Whether you’re moving across the country or around the world, you can rest assured that your belongings will be safe in this way.
Another website that offers good policies is Cargocert.com. Over the past five years, their underwriters have approved 98% of all claims. To ensure claims are processed quickly, the company created an online claim portal that makes it simple for you to submit documents, images, and other evidence. In addition, a claim guarantee of 10 days and 30 days (for claims under and over $5,000, respectively) is included with every shipment they cover.
Moreover, their insurance is affordable, and the service is high quality. They have a variety of insurance providers from which to choose. The cost and coverage are the same, whichever you select. The choice is entirely up to you, as all their insurers back them up equally.
Finally, US-Moving.com is another reliable online moving insurance provider. The website is an excellent source if you’re looking for information on moving companies, auto transport, self-storage, and/or global shipping services. In addition to free moving quotes, guides, and details for your home move, US-Moving.com also offers information on relocating your vehicles and many storage solutions. So even if you’re still planning on moving, their relocation guide has the information and resources you need to get the process started.
Self-Moving Options
You’ve made the decision to move your possessions yourself. Saving money on your move is great, but what happens if something goes wrong?
A rental truck is a must-have. You can either use the rental company’s insurance or call your own auto insurer and request Endorsement 27. This covers vehicles that are rented or borrowed.
However, the value of the rental truck must be covered regardless of how much you pay in co-pay and insurance coverage. Your auto insurance will cover any damage to the truck as if it were your own.
Don’t skimp on insurance coverage if you’re moving with just a trailer and not a lot of stuff. If you have an all-risk policy, your broken items will be covered. However, if you have a named perils policy, they will not be. So refer to your insurance policy, or better yet, contact your insurer to find out how much coverage you have.
Have a Stress-Free Move
If you’re going through a stressful move, losing something you value can make it even more difficult to bear. Most long-distance movers must provide insurance for your belongings. Adding more coverage is always an option if desired.
Ask for coverage information if your chosen mover does not offer it. Moving companies are required to provide it in an easily readable summary.
Before purchasing an insurance policy, check if your current homeowner’s policy covers you. Consider extending the insurance provided by your movers if you can afford it. After all, it’s much less expensive than having to replace everything from scratch.
If you’re interested in other types of moving insurance besides what your local moving company offers, feel free to check out online moving insurance providers.