Understand how to protect your belongings
when doing a long distance move
Moving Insurance Information
Do You Need Moving Insurance?
It all depends upon the value of your possessions and how far you plan to move. If you are moving from San Francisco to New York, then the sheer distance involved suggests that insurance might be a worthwhile investment in relocation insurance for security and peace of mind. In some case, federal law may apply. For a local move, however, you may or may not be as concerned. Determine all of the risk factors and act accordingly.
Studies show that due to the Covid 19 pandemic, more than one fifth of Americans have either relocated or know of someone who has done so. Most homeowners insurance company policies for renters and homeowners do not cover the cost of lost or damaged goods and possessions, It is just for this reason, and the other potential problems that may coincide with your move, that moving insurance would be a very appropriate consideration.
If you have anything of value, financial or sentimental, it is always better to be insured than not be insured. One of the Moving Mistakes that often comes up, is not having moving insurance. Reputable moving companies do everything possible to make sure your items arrive safely and intact at their new destination. However, even with the most diligent and professional packing, damages and loss do sometimes occur within the moving industry.
Moving companies do not provide insurance, they provide valuation. By federal law, it is mandatory that moving companies are responsible for the liability of goods being transported. There are two levels of liability, Full Value Protection and Waiver of Full Value Protection. Knowing the differences between the two is vital in understanding charges and coverage.
Moving companies are obliged to inform you of the different options for coverage of your items. Whether you choose one of the two levels of liability through the moving company, or opt for protection from an insurance carrier, it is important that you understand what is covered, and what is not covered when deciding the best option for your belongings.
What Is Moving Insurance?
Simply put, accidents happen, and moving insurance covers any and all damage or loss of your possession during the course of a move. Any move, whether local or long distance, my put your possessions at risk, and as such they should be properly covered and provided for. And because there are so many different ways to move, there are various types of coverage to protect your belongings.
Ideally, your belongings should be covered while they are at your original residence, in transit, and in storage facilities. Further policy breakdowns are as follows:
Trip Transit Insurance
This covers full replacement value for personal property against natural disasters, theft, disappearance or fire while in transit or storage.
Special Perils Content Coverage
This coverage provides against breakage of all but fragile items.
This provides for protection of high value items such as an art collection or expensive jewelry. The addition of a floater to your homeowners or renters insurance can fully protect you.
Car Insurance Verification
If you are transporting a vehicle, you want to make sure and obtain the auto shipping company’s insurance certificate. All are required by law to present one.
If you find that you will need to place some or all of your possessions in storage for a period of weeks (or months, or even years), it always helps to have added moving coverage.
Full Value Protection
Full value protection is the more complete of the two options. If your items, while in transit with a moving company become damaged or lost, the company will assume responsibility and offer to repair the item, or pay you a sum amount to replace the item.
Moving companies are allowed to limit the level of liability for items of value. An example of a valuable item would be: any item with a value of $100 or more per pound (example: jewelry and antiques). If you are entrusting the moving company with these items of value, it is your responsibility to list everything of worth on all relevant documentation.
Waiver Of Full Value Protection
Waiver of full value protection does not cost you, and offers minimal coverage of your items. In the event that any of your items were damaged or lost during an interstate move, having opted for this level of released value protection, means the moving company takes responsibility for no more than 0.60 cents per pound, per item. For moves within your state, the coverage amount is most commonly 0.30 cents per pound, per item. However, this may vary dependent on the different state regulations or federal law.
Third Party Insurance
Purchasing third party moving insurance from a third party insurer is highly recommended, especially if anything being moved is of value and worth more than 0.60 cents per pound, and may exceed the limit of liability set by moving companies for items of value within the full value protection coverage. A third party insurance company policy generally costs between 1 and 4% of the total declared value.
Some homeowners or rental insurance policies offer moving insurance coverage of your household items while they are in transit. Check to see if you are covered through your current policy. Make sure to understand levels of coverage, and if any claims are made, how this may effect your homeowners insurance policy.
Knowing that you have moving insurance for your belongings, allows you to rest assured that once you start Unpacking Your Home After the Move, should some or all of your items get lost or damaged while in transit, you are covered!
What Isn’t Covered Under Moving Insurance Policies
Of course there are exceptions under your homeowners insurance policies or renters insurance policy; not everything is going to be covered. A few examples would include:
In addition, if this is a long distance move, you may wish to check with both states in order to verify and confirm local movers’ rules and regs, as each state may have different rules that apply in given situations. Federal law may apply as well.
How Much Should Moving Insurance Cost?
As with any moving insurance policy, the pricing will largely depend on the provider that you choose, the type of protection you want, and the value of the items to be insured. Many movers offer most basic coverage free with your moving agreement, but in terms of policy costs, you can expect to pay out around 1% of the total estimate of the value of belongings you will be moving. Proper research will save money on moving insurance.
And In Conclusion
Before choosing any moving company or relocation insurance group to sell insurance for your move, always take the time to make sure the moving insurance company has a report on file with the Better Business Bureau. They have comprehensive reports on more than 20,000 moving providers or moving related providers. Check out the letter grade assigned to each one, and read carefully any complaints, reviews, or actions that may have been taken against them. Under federal law, the Department of Transportation website offers a similar service through the search tool on their website. By doing your research and homework early on, you can make the actual moving experience a much more pleasant one.