The short answer is: Yes, you most likely need moving insurance. Despite federal legislation that coerces moving companies to provide compensation for damaged, stolen, or destroyed goods, the amounts companies pay back in such cases are infinitely smaller than your item’s value; But we’ll get to that soon. To get to the long answer, let’s start with some popular questions about moving and relocation insurance:
Moving Insurance Pros & Cons
Unlike valuation – which we’ll get to in a bit – moving insurance is optional and regulated by state laws. When purchasing third-party insurance, the moving company is liable for damage under federal laws and will reimburse you a maximum of $0.60 per pound for damaged items, and the insurance company will cover the rest as long as it does not surpass the initially-insured amount, which results in better coverage. Since stress is a default component of the moving process, the peace of mind insurance offers you is priceless.
However, there are downsides to purchasing moving insurance, too. The moving process is costly and time-consuming, and purchasing moving insurance implies further considerable costs for a good policy. Another aspect that can be considered a downside to purchasing movers insurance but an upside overall is the low incident rate, which makes insurance useless in most cases. However, it’s better to be safe than sorry.
What Does Homeowners Insurance Cover?
Your homeowners insurance covers all your personal possessions while at the insured locations and, sometimes, while moving, too. When the belongings are not on the insured premises, it usually covers about 10% of their value. However, with the multitude of insurance companies and their plans, it is hard to provide a general answer to this question; It all depends on your policy.
Does Renters Insurance Cover Moving?
Just as with homeowners insurance, policies vary from company to company – but the reimbursed amounts rarely do. If some can cover a small part of the prejudice, it will be about one-tenth of the total value.
What Liability does the Moving Company Have?
There are federal regulations that make all moving companies responsible for the goods they carry, but their liability is very limited. In addition, many companies bear no legal responsibility if you packed the belongings yourself. In addition, damage due to delays in the delivery of your goods is rarely covered.
What is valuation?
Moving companies offer valuation by default, under the control of the Federal Government. This moving company “insurance” is not related to the real value of your goods, but to their weight, and decides the maximum amount the mover is liable for if damage or loss occurs. It is called declared value protection and will repay you with $0.30 per pound for intrastate trips and $0.60 per pound for interstate or international trips.
Another type of valuation that comes with its cost is full value protection, which requires the moving company to repair, replace, or reimburse customers for any damage customer’s items suffered while in their custody. Moving companies can offer insurance from a specialized company, but the prices are often higher than buying it directly from the source.
Moving Insurance Reviews
There are many moving insurance policies, each of them addressing certain needs. When searching insurance for moving, companies should be a decisive factor. Here are the biggest movers insurance companies and an overview of their services:
Basic coverage moving insurance addresses the needs of owners who packed their own belongings. Items are covered in case of loss or direct physical damage caused by collisions or other events like fire. The company is not liable for theft or damage caused by mishandling unless the packaging also has visible damage.
Enhanced coverage moving insurance is only available to customers who hired professionals to pack their belongings. It provides complete protection against theft, collisions, breakage, or other perils. Here is a list of risks covered by Transguard’s Basic insurance plan:
- Collision, derailment, or overturning.
- Malicious mischief.
In addition to these perils, the Enhanced insurance plan also protects valuables from:
- Volcanic activity.
- Typhoons and cyclones.
- Rising waters.
Movinginsurance.com’s Total Loss Only insurance plan protects ensured belongings in case of catastrophe which results in complete damage or loss of your goods. It does not cover individual items, a 100% loss or destruction is needed for reimbursement. It is the cheapest moving insurance and the only one available to customers who pack their own items or do not hire a full-service moving company.
Customers who use a full-service moving company can benefit from their most comprehensive insurance plan, the Full Service – All Risk. It is available for intrastate, interstate, and international moving and requires a complete list of items about to be moved.
Moving insurance.com offers two options for their other insurance policies, apart from their actual plans: selected inventory and total value. The first one requires an inventory with replacement values for every item and is the most comprehensive type of insurance in a plan.
The total value option insures the entire shipment and requires the owner to place a total value on their goods. The policies available under these options are self-explanatory:
- Full service – they load, they drive.
- Mobile storage – you load, they drive.
- Truck rental – you load, you drive.
What Happens If I Don’t Purchase Insurance?
If you do not purchase moving insurance, you will be inappropriately reimbursed for your belongings in case of destruction, damage, loss, or theft. The amount paid by the moving company is far from enough to replace or repair your things.
Destroyed items are usually recycled or thrown away. Damaged items can be sometimes rescued and donated or sold as transit damage furniture. However, summing up their selling price and the valuation reimbursement still won’t be enough to purchase a new similar item.
In the end, moving insurance is one of those services you will be glad you bought. If you need it, the reimbursement will equal or be close to the cost of repairing or replacing broken items. If you don’t, the composure it will give you while moving will be worth it anyway.