All you need to know about Moving Insurance
Are you planning to move anytime soon? If you are, you should start thinking about moving insurance as soon as possible. Moving insurance is, of course, one of the (best) ways to protect your personal belongings during the relocation. Sometimes, it is provided by a moving company you chose, and sometimes, you might need to involve a third party. Moreover, this insurance is sometimes entirely free, and sometimes it is a significant, additional expense. It all depends on what you are moving, how far you are moving, and most importantly, it depends on the value of your belongings (both monetary and sentimental).
However, one thing always remains the same - you need moving insurance. Whether you are moving across the ocean or somewhere around the corner - you need it! Thus, today, we will talk about all you need to know about it.
Released Value Coverage
Let's begin with the most common type of insurance - released value coverage. All moving companies provide this insurance; it is free, and it claims that you will be reimbursed for a percentage of your belongings. Namely, if your movers packed you for a long-distance move, and if some (or all) of your belongings get damaged or lost, the moving company will pay you 60 cents per pound. This type of insurance may sound like the most economical solution (after all, it is free), but imagine the following situation: your $1000 laptop gets damaged during the transportation, and since it weighs approximately 3 pounds, you will receive only $1.80 for it. So, we can all agree that this is not a good deal.
Released value coverage insurance may not be a good idea if you have expensive and valuable items.
Full Value Protection
This is when things start to heat up when it comes to pricing. Full value protection insurance does come with a price tag because you are ensured that if something happens to that previously mentioned laptop, you will get a refund based on the current value of that laptop. This may not be ideal, as you may have spent a lot more on that laptop, but it is still a lot better than getting $1.80 for it.
Full value protection insurance works by multiplying the total weight of your items by $6 per pound. But, you can increase this amount by asking for higher value protection. Of course, this will cost you more, but it will be the only way to ensure you get a full refund in case something happens.
If you opt for this insurance, you will need to make an inventory of all the items you are relocating (and their prices). It will be one of a few moving services that you will have to do yourself.
Third-party Moving Insurance
If you have many expensive and valuable items that you need to relocate to your new address, you might want to get third-party insurance. This type of moving insurance will insure every knick-knack in your home. In case something bad happens, you will get your full refund back.
The best part about third-party moving insurance is that you do not have to move with the help of a moving company. You can get insurance for your items even if you are moving everything yourself. Or, you can insure just a couple of 'important' things.
There are also cases when people hire specialty movers, such as pool table movers, to reduce any risks of damaging the pool table and still get third-party moving insurance. No, this is not overreacting. It is a way to ensure that nothing terrible happens to your precious, expensive, and valuable piece. It is a way to ensure that you get your money even if something does happen.
For the best relocation - hire movers and get third-party insurance.
Homeowners and Renters Insurance
Another insurance you should know about is the so-called homeowner's and renter's insurance. This insurance covers homeowner's and renter's assets in case of damage or loss. If you are moving locally, that is, not far from where you are now, this insurance might be a great deal. But, if you are moving somewhere across the ocean, it is not. It does not cover damages and losses that happen in transit, only the ones in or at least very close to your property.
Depending on what kind of homeowner's and renter's insurance you have, you might get a refund in case there is a flood or fire too. But, this is something you will have to check with your insurance company.
Read and re-read every sentence in your insurance policy to determine what it covers.
Final Thoughts
Getting moving insurance may be the last thing on your mind, especially when organizing a last-minute move. But, as you have seen, many things can go wrong during a relocation. And, if you are not insured, you can easily say goodbye to both your belongings and your refund. So, be wise! As soon as you set your moving date and budget, set a date with a moving consultant too! Or arrange a date with your insurance company.
Whatever you do, do not try to cut corners on this one. Moving insurance can be a lifesaver in certain situations. Moreover, do not opt for the cheapest option at all costs. In most cases, the most affordable option will mean nothing to you. Instead, make an inventory of all the expensive and valuable items you plan on relocating and talk to the insurance or moving consultant. They will advise you on what type of insurance to get.