What is moving insurance and do I need to purchase it?
Apart from being stressful for most people, moving can also be expensive. The price tag of a move, combined with new mortgage payments, first and last month of rent and numerous other out of pocket expenses might encourage some of us to try and lighten the financial load by opting out of buying moving insurance. But, is it the right decision for you?
It really depends on your move and the type of load you are transporting. Here, in U. Santini moving and storage we believe in always giving our clients a fair deal. Never overcharging them and helping them save whenever possible on their moving expenses. Nevertheless, insuring the move is something that every client needs to consider and make a decision that serves him/her the best.
Moving is an intense physical experience and even though all moving companies try their best not to damage their clients property, evidently things get damaged. It is very hard to get accurate numbers on how much damages specific moving companies are responsible for and it is even harder to gather insurance company date on the subject. We heard reports of damages between 9% and 24% of the moves for different companies. Whatever the actual number is, it is better for the client, (you) to be protected and work with a trusted moving company that will take care of the damages if there are any.
What is moving insurance?
According to the website “Moving insurance” Insurance is a system of protection against loss in which an individual agrees to pay a certain sum for a guarantee that they will be compensated under stipulated conditions for any specified loss. It is a contract guaranteeing such protection.
- Insured/Assured: a person whose property is insured against loss.
- Insurer: a company that insures others against loss or damage: underwriter.
Simply put, lots of things can go wrong on moving day. From breakables getting getting broken to a snow storm that might freeze and destroy electronic components in your stereo equipment, to the moving truck being in an accidents or catching on fire, the odds of catastrophe are probably low, but there’s no guarantee everything will run perfectly. So, as with any situation that has you and/or your life’s belongings in transit, it’s best to have a cushion in case things go awry. That’s precisely what moving insurance is: protection against unforeseen destructive forces during a relocation.
What kind of insurance is right for me?
- Valuation – This is not a real insurance policy. It is the most basic form of moving insurance that you could purchase, this is usually best for people who are moving on a tight budget or for people who don’t have too many expensive or valuable items that they’ll be moving. It is also the minimal amount of liability that by law must be provided to you free of charge when transporting your items. It is known as the “released value”, and is the insurance that is limited to that .30 (intrastate) or .60 (interstate) per pound per article. How would this work? If your TV is damages and it weights ten pounds, you would only get $3.00 for it even though a new one might cost $400. Only use this type of insurance if you have a small load with nothing really valuable in ti,
- Declared value – The value of your possessions is based on the total weight of the shipment multiplied by a specific amount per pound. For example, if the specific amount is $1.50 per pound, and your household goods weigh 20,000 pounds, the mover would be liable for a maximum of $30,000. The settlement is based on the depreciated value of the damaged goods. This type of insurance is suitable for clients who have a large amount of boxes and items to send, but have relatively few high value items. This type of insurance provides an affordable way to protect your belonging in transit.
- Full value protection – This coverage includes lost, damaged and destroyed property. The coverage will pay for the repair or replacement of the goods. Usually there is a minimum coverage amount and applicable deductibles.It is the most comprehensive and also the most expensive type of insurance that you can purchase for your move.
Will my home owners or renters insurance cover damage during the move?
This is something you need to discuss with your insurance broker. Some insurance policies cover your belongings while they are in transit. Typically they cover no more than 10% of the value. If you are moving mostly non expensive items, you might consider using this option together with the valuation option. If you have a considerable amount of expensive items you are moving, it makes sense to spring for a moving insurgence policy and have your things better protected during your move.