Moving insurance is a premium cover to protect your belongings during transportation. You should get coverage when you want to use the services of major moving companies. You might need additional coverage depending on the content you transport and the distance you must go. Moving insurance is not a mandatory requirement during a move; it relies on how comfortable you are with taking the risk of making an uncovered move.
Moving companies are not certified to provide insurance services, and neither are they governed by federal insurance regulations. Technically speaking, moving insurance is not an actual insurance cover but a valuation, a service provided by moving companies but working like insurance. The moving company compensates you if your belongings are lost or damaged. Moving companies that operate across the states must offer full and basic coverage options.
Moving insurance comes in three forms:
- Basic coverage
When moving, this is the released value protection and constitutes the most basic coverage form. The moving companies do not charge for released value protection. The consumer is required to enquire about it and agree to its coverage. No extra costs are incurred; hence it offers the most minimal coverages. The movers accept liability at only 60 cents per pound per article. Even when you file a claim, lost items and damaged ones cannot be replaced under this coverage category. All you get is 60 cents per pound of each item.
- Full coverage
This, also known as the full value protection or the expanded valuation moving insurance cover, allows you to set the limit of liability for the moving company, which ensures that the company has under its responsibility more than just the basics. Still, it requires that you pay an upfront premium. The moving company is responsible for fully replacing the goods it is transporting for you, and as the consumer, you get to determine the worth of your goods per pound before paying a premium. Many moving companies have full value protection policies and minimum claim values. Additionally, some states have in place rules and regulations regarding the minimum coverage level, which put a cap on the compensation you should get in case the whole of your shipment is damaged or lost.
Filing a claim under this coverage gives the movers three options for fulfilling the claim: repairing the item, replacing an item of value comparable to the lost ones, or paying out the consumer for repairs or full reimbursement, depending on the item’s market value.
- Third-party coverage
This is the best option when you move valuable items that the other forms of insurance coverage might not cover. Do not assume the renters or homeowners cover your property during a move. It is also vital to note that, under this policy, if you go against the insurance policies you agreed upon with your renter or homeowner, they will not provide you with the cover you need to move to another home. The policy might at times cover your transit if your move is a local one and you observed the set policy at the former house, but you must look this up because it is not always the case.
Choosing the best coverage
Among the things you have to consider before deciding on the best coverage for your move is the worth of the property you need to move. This requires you to generate a comprehensive list of all that you own while also thinking of their market value, their weight, and whether you have delicate pieces. This should be followed by a determination of whether the additional costs incurred in full value protection are worth it, in addition to such other factors as the distance of the move and if the goods in transit are high-value items.
