Lisa Mailhot | October 18, 2023
Moving can be an overwhelming experience. The list of tasks seems never-ending: packing, notifying utility companies, forwarding mail, and ensuring that nothing crucial is overlooked. On top of all this, there's another factor to consider: the safety of your belongings during the move. In this blog post, we'll explore the world of moving insurance, why it matters, and provide valuable tips to help you make an informed decision.
Moving companies are legally required to offer a basic form of insurance, known as "released value protection." This coverage is typically set at a meager 60 cents per pound. For instance, if your cherished items are damaged or lost during the move, you'll receive compensation based on this weight-based calculation, not the actual value of the items.
While it's comforting to know that licensed moving companies include this basic coverage in their quotes, it's essential to recognize its limitations. If you have valuable possessions, this standard coverage may fall significantly short of providing adequate protection.
To bridge the gap left by basic coverage, many moving companies offer the option to purchase additional insurance. Referred to as "full-value protection," this coverage is based on the valuation of the transported contents. It typically comes with a deductible, often around $500, and can cost an additional $50 or more, depending on your location and the moving company you hire.
Full-value protection grants the moving company two options in the event of loss, damage, or destruction of your items. They can either repair the damaged item to its pre-damaged condition or replace it with something similar. However, it's important to note that they may not provide you with a brand-new replacement for a damaged item.
Keep in mind that this coverage usually excludes very high-value items worth $5,000 or more. So, if you're transporting items of significant worth, you'll need to explore other options.
For those with exceptionally valuable possessions, additional coverage through a third-party insurance provider may be necessary. This type of insurance typically costs around $100 for every $10,000 in coverage and generally covers all items. Before the move, it's advisable to create an inventory of your belongings, especially valuable ones. For long-distance moves, ensure that these items are listed on the shipping documents, which can save you from headaches later if you need to file a claim.
Surprisingly, your renters or homeowners insurance might extend coverage to your items during a move, even after they've left your home. To determine if you're already covered, consider reaching out to your insurance agent. Some insurance providers may also offer additional moving insurance options, eliminating the need for third-party coverage. However, it's crucial to assess the coverage limits and whether you need a higher policy limit to safeguard your valuable possessions.
Moving insurance is an essential consideration when planning a relocation. Basic coverage may provide some protection, but for peace of mind, especially when moving valuable items, exploring additional insurance options is prudent. Whether you opt for expanded coverage through your moving company or seek third-party insurance, careful planning and documentation are key to a smooth and stress-free move.
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