How does Moving Insurance Work?

November 30, 2021

Hiring a moving company is essential, but the last thing you want to think of is damages. Most homeowners’ and renter’s insurance policies don’t cover damages and loss when moving.

Having moving insurance will do you good. Even when moving houses just across the street, you expose your items to potential problems. When you have moving insurance, you are sure that your staff is in the safe hands of professional movers. In case you find an item missing or damaged, you have a fallback plan.

What Is Moving Insurance?

Just like a driver with years of experience can get into an accident, moving accidents are prone to occur, even for experts and moving companies.

Moving insurance covers damages and losses to your belongings during transit. A moving insurance policy helps you get compensation for damaged or lost items. The insurance policy you choose determines what the insurance covers. The insurance coverages range from floods to accidental damages.

What Are The Types Of Moving Insurance?

Are you planning to move to a different state? If yes, then you are eligible for two coverage options. The type of insurance coverage you choose determines the reimbursement you will get for loss or damages.

  • Full Value Protection

Do you wish to have all your belongings wholly covered by the moving company? Be prepared to dig into your pockets. Complete value protection is comprehensive coverage but a bit expensive.

Full protection for the complete replacement of damaged or lost items in your shipment. If some of your belongings get lost or damaged, your policy can repair or replace the item. Or, you may be eligible for a cash settlement worth the market value of the commodity.

Depending on your choice of moving company, the costs of complete value protection will vary.

Note – Complete value protection doesn’t cover items of exceptional value (more than $100 per pound).

  • Released Value Protection

Released value protection is a pocket-friendly coverage. If you lose or get damaged items, the released value protection compensates you at a set price per pound per item. Released value protection doesn’t cover the entire market value of damaged or lost items.

Separate Liability Coverage/ Third Party Insurance

Some movers provide separate liability cover via a third-party company at extra cost. Your mover is liable for released value protection, covering 60 cents per pound. However, the third-party insurance policy covers the remaining loss as per the limits.

You can buy the additional moving insurance from the moving company or third party. Whoever you choose, be sure to have a copy of coverage details and understand the extent of the coverage.

Third-party insurance offers replacement, repairs, or cash settlement as per the market value of the item. Third-party insurance also covers exceptional items of more than $100 per pound.

What Is Valuation?

Valuation is the liability cost a moving firm takes if damages occur during transit. For example, when moving from apartment A to B in the same building, valuation is suitable. Valuation coverage is less compared to insurance coverage.

What Is The Cost Of Moving Insurance?

The value of your belongings is the primary determinant of the cost you are likely to incur. If you possess items of significant value, you will pay a relatively higher amount. Another factor in determining the price is the moving insurance coverage you choose.

Released value protection (from your mover) is often free of charge. On the other hand, you pay between 1-2% of the real property value if you select the total protection value. Third-party insurance charges between 1% and 5% of the estimated value.

Why Do I Need Moving Insurance?

If your items are of high value, why not have moving insurance? If you’re shifting to a distant place, moving insurance is worth considering. For instance, moving during harsh weather conditions like hurricanes and insurance will help. Climate conditions may also force you to have moving insurance. 

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