Whether you are moving to a house on a nearby street or across the country, planning a move can be complicated. Any move comes with a big variety of nuances, forgetting some of which could lead to unexpected expenses. One of them is moving insurance.
Many people don’t realize how important insuring your move could be. Others believe it’s the moving company’s responsibility by default. To make sure your move goes as planned without extra expenses, you need to learn about moving insurance. Here are 5 key things to consider.
1.
Generally, moving insurance doesn’t work like a traditional car or homeowner insurance. It’s based on valuation. When you purchase moving insurance, the company determines how much your belongings will be valued in case of damage, theft, or loss.
The type of insurance plan depends on how big your move is. If you are planning to move to another state, you can take advantage of federal laws that protect your items. These laws usually hold moving companies responsible for any damage during the move. However, the payment you may receive because of a claim may not be sufficient to cover the damages.
That’s why it’s important to consider additional insurance, especially if you are moving within a state or country.
Three common types of moving insurance exist - release value, full replacement value, and third party coverage.
2. Released Value Protection is Based on Weight
Moving companies offer their clients a basic coverage of their items called released value protection. While you don’t need to pay for such basic coverage, according to experts from Torex Toronto moving company, you need to ask for it. Otherwise, the insurance may not work in case damage occurs.
Released value insurance offers minimal coverage. Generally, you should expect to get about 60 cents per each pound of the damaged possession. That means that if your 20-pound computer gets damaged, all you’ll get is $12.
With released value protection, you can’t count on repair or replacement. All you get is the amount based on weight. This type of insurance could be good for furniture. However, if you are moving valuable items, it’s almost useless.
3. Full Value Protection is an All-Encompassing Coverage
If you’d like to get better coverage, consider asking the moving company about full value protection. It’s a much more sold insurance option for a move. However, it comes with a certain cost. Such insurances can also come with deductibles that can vary from $250 to $1,000.
When you purchase a full value protection insurance, the moving company is responsible for replacing the value of all possessions that are damaged during the move. Before the move, you’ll share the cost of each item per pound. If the item is lost or damaged, the company will pay for it.
When your file a full value insurance claim, the moving company has a choice of repairing, replacing, or providing a cash reimbursement based on the current market value.
4. Third Party Insurance May be a Good Call
Depending on how much your possessions are worth, you may want to consider third-party insurance. Remember, homeowners insurance doesn’t usually cover damages during the move. You’d need to get an additional policy.
In case someone other than the movers damages your possessions during the move (for example, a friend may drop something when helping you carry heavy items), their personal liability insurance may cover the damages.
5. The Costs of Moving Insurance Can be High
Unless you are getting released value protection, other insurance options can be costly. With full value protection, be ready to pay about 1% of the total declared value of your possessions.
You may want to double-check with your home insurance or renter’s insurance provider. In some cases, the company may be willing to sell you moving insurance on good terms.
The Takeaway
Buying insurance for your move can help you get reimbursed for unexpected damages. While the majority of the moves goes smoothly, especially if you choose a reliable moving company, accidents happen. It makes sense to be prepared.
