Whether you are moving a mile or hundreds of miles away, having proper moving insurance is of utmost importance. It is particularly critical when you need to move valuables safely and when simple damage to an item can cost a fortune. Moving insurance guarantees proper compensation in these circumstances and provides you with peace of mind even if an item gets damaged, destroyed, or lost in the process.
To clear away any doubts you might have, here is everything you need to know about moving insurance. Study the information carefully and you will have no difficulties to choose the appropriate coverage once the relocation time comes.
Valuation not insurance
One of the facts few people know is that moving companies are not certified to sell insurance to their clients. What they actually offer is a valuation that functions like insurance. Respectable moving companies provide their clients with appropriate compensation in case their expert teams make a mistake and damage, lose or destroy some of the client’s possessions. This is one of the criteria to bear in mind if you want to make sure you spot fraudulent movers. Fraudulent companies avoid providing their clients with a guarantee of this type. Hence, no valuation is a sure sign of a red flag.
Types of moving insurance to choose from
Generally, there are two types of insurance every reputable moving company will offer to its clients regardless of the type of relocation. What you choose depends greatly on the value of your items. Thus, your choice will be different if you need to relocate your household items and when you are planning to transport your luxury vehicle to a new destination. Most homeowners insurance policies and even the cheap general liability insurance for contractors cover roof replacement if the damage is the result of an act of nature or a sudden accidental event.
Released value protection
This is the basic coverage that does not cause any additional expenses on behalf of clients. To those who opt for this coverage, a moving company offers 60 cents per pound per an article in case of damage or loss. In other words, you can get neither a repaired nor a new item for those that are damaged or lost. If you give this thought a bit of thinking, you will soon realize it is not a favorable option if you are, for example, relocating fine art and other luxurious items. The compensation you will receive in this case is far beyond the actual value of these items.
Full value protection
Full value protection is more comprehensive coverage that entitles you to the full replacement of the goods in case of damaged or lost items during the moving process. However, choosing this option involves paying a premium upfront. You need to inform the moving company about the value of the belongings you want to relocate. According to the value you declare per pound, you need to pay a premium for that particular type of coverage.
A vast number of moving companies have a set of rules regarding full value protection. They define the minimum value you have to claim on your goods to be able to choose this option. Moreover, some states have regulations too regarding this matter. For example, in most states, the minimum level of coverage is between $4 and $6 per pound. In other words, if you are moving 15,000 pounds, your household items will be valued between $60,000 and $80,000 depending on the value you declare. Hence, the maximal amount you will receive if all these items are damaged, destroyed or lost ranges between $60,000 and $80,000.
Finally, when you file a claim, your moving company has three options at its disposal to respond to it. It can repair the item, replace it with an item of the same value, pay for the cost of repair, or pay you the current value of the items in question. However, most probably you will have to pay a deductible first which can be anywhere between $250 and $1,000.
In the situation when you need to relocate luxury home items, moving companies have the right to limit their liabilities. Make sure you understand the terms they offer and that these are in complete accordance with your expectations and needs. Most importantly, it is crucial to remember that full value protection does not include these items automatically. Also, know that the premium and deductible are closely related to the value of your items. The higher the value of your belongings the higher the premium and deductible will be.
Hiring the third party
People involved in the relocation process often decide to contact and hire a third party to provide them with additional insurance for the full protection of their luxury and valuable items. This is a very intelligent decision for all those who want to protect their belongings of extraordinary value. Investing in paying a premium to the third party is a much better choice than facing the expenses once some of these valuable items get damaged or lost.
How to choose the proper moving insurance?
Logically, the insurance you choose will highly depend on and be related to the value of your items. The more valuable your items are the more comprehensive coverage you need. Once your items are safe and sound at your new home location, you can take some high tech security measures for your new luxury home. Finally, you can relax and enjoy immensely in this new phase of your life.
Final Thoughts
When organizing your relocation, choose the proper moving insurance very carefully. It is vital to understand all the details of the contract you are signing with the moving company. When you possess a considerable number of valuable items, protect your interest, and provide your belongings with the utmost safety.
