Moving Insurance - What are the Pros and Cons?
When you’re about to move out, one of the things that need to be highly considered is logistics. You need to determine how your belongings are going to get from Point A to Point B. This is especially important if you are moving many valuable items like family heirlooms or expensive artwork.
Adding another layer of protective measure for your items is essential when you move. Even if you hire the most highly-rated movers or if you don’t own any items of immense value, there is still a possibility that accidents will happen during the move. This is when moving insurance comes into play to protect your belongings from damage.
It Offers More Coverage Compared to Valuation
Moving companies provide valuation options in lieu of insurance. Valuation is the amount of liability your moving company is willing to reimburse you if they are found responsible for losing or damaging your item. It’s automatically provided with your moving contract at no extra fee.
How much your moving company compensates you for damages depends on your type of valuation. There are three types of valuation: complete value protection, released value protection and declared value protection based on weight.
Complete value protection provides full coverage on your entire inventory. It pays for replacement and repair for damaged or lost items during the move. It may sound too good to be true, but this protection has exemptions. These include damages caused by fire, hurricane, tornado or earthquake or items which were not professionally packed. It is also in the company’s discretion to either replace your item or compensate you with the item’s current fair market value. It also doesn’t cover items having a value of more than $100 per pound, so this won’t be as useful if, for example, an expensive sculpture gets chipped while moving.
Released value protection is a standard inclusion in moving packages and offers coverage of 60 cents per pound for items. You will be reimbursed for all your items from old tapes to heirloom for 60 cents a pound. It doesn’t cover the full market value. If the Dali painting you got for a million dollars got ruined, you will only be reimbursed $18 for damages under this protection.
Valuation offers a minimal level of coverage and barely compensates the actual value of your items in case they are damaged or lost while in transit. In fact, it only covers about 10% of the whole value of your inventory. If you have more than a handful of valuables or want to account for the actual value of your items should they get damaged or lost, purchasing moving insurance is your best bet.
Homeowner’s Insurance Don’t Normally Cover Damages from Moving
It’s a common occurrence in the insurance industry for homeowner’s insurance companies not to provide coverage to damages when moving. Some insurance companies will, though, but you need to double check with your provider if they do. If your insurance provider included moving and storage coverage to your policy, you need to ask them to specify the kind of damages they cover. Usually, they will only cover catastrophic damages such as the moving truck catching fire or driving into a lake which doesn’t happen in normal circumstances. If you want peace of mind and a specific way of protecting your items, communicating these to your provider will most likely allow you to get the coverage you need.
Offers Protection When You’re Doing the Moving Yourself
When you’re moving on your own or with the help of friends, getting insurance provides peace of mind when an adverse event damages your items. If your friend happened to accidentally damage your item, he or she will have to pay for the damage out of pocket costs or using their homeowner’s insurance. If she doesn’t have insurance and can’t afford to pay for the damages, your moving insurance will pay for the repair or replacement of the damaged item.
The disadvantages of moving insurance are the additional cost of buying a policy and having to create an inventory of all your items. But when given a second thought, these are minor inconveniences to compared to losses or damages incurred if a highly valuable item gets lost or broken during the move.