A move can be thrilling and nerve-wracking at the same time. The moving trend statistics by Home Bay saw 44% of Americans cry at least once during the moving process, and 28% regretted not hiring a full-service moving company. From packing to organizing to ensuring the possessions are safe and secure, it can easily cause havoc in your peace. But you can protect your belongings with moving insurance.
Moving insurance aims to protect all of your items from possible risks and damages during their move. Particularly useful when moving expensive or sentimental items.
Moving insurance is necessary to avoid the uncertain financial burden of your belongings. This fact comes from professional movers who 100% advise on purchasing moving insurance.
Here’s more detailed information on moving insurance coverage and how moving insurance works.
What Are The Types of Moving Insurance
An insurance company covers repairing or replacing the belongings or provides cash settlement through moving insurance. Different types of moving insurance policies cover different types of moves.
The following types of moving insurance and their moving insurance coverage have two categories:
Types of Moving Insurance for Professional Moves–
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Full-Value Protection
Under this insurance plan, the moving company is responsible for fully replacing, repairing, or reimbursing any damaged/lost asset. However, each moving company has a different asset value calculation method. This full-value protection moving insurance offers the best protection but comes with a higher premium. So it would be best to discuss policy details and deductibles before getting the coverage.
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Released-Value Protection
Released value protection or basic carrier liability is the basic moving insurance coverage facilitated by law. With this plan, the moving company is only responsible for offering 60 cents per pound per item. For example, if you have a 20-pound T.V., and it gets damaged during the move, the company will reimburse you $12 (60 cents x 20 pounds).
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Third-Party Moving Insurance or Separate Liability Coverage
This moving insurance coverage is optional for you to purchase from an independent insurer. With this plan, you can provide additional protection to your inventory. The range of this insurance is customizable as it covers items of value exceeding $100 per pound.
Types of Moving Insurance for DIY Moves
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Rental Truck Coverage
If you’re preparing the move by yourself, rental truck coverage protects you in the event of an accident. The downside of it is that it doesn’t cover damage caused during loading and unloading.
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Container and Contents Protection
You can get this insurance coverage from companies that provide portable storage containers. This moving insurance coverage protects against damage or loss of belongings during transit or storage.
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Homeowners Insurance
This moving insurance falls under homeowners or renters insurance, in which the tenant’s possessions get protected during a move. You must check with your provider to understand the extent of coverage.
Factors That Affect Moving Insurance Rates
Different factors affect insurance rates, such as the following:
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Moving Distance
The distance of the move affects moving insurance rates. The higher the moving distance, the higher the insurance rates are likely to be. An extended journey entails an increased risk of theft/damage.
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Weight
The heavier the items, the more likely they will suffer damage or loss during transit. So, for this reason, weight also affects the moving insurance rate.
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Item Fragility
Moving service providers often charge higher for their moving insurance if the item is more prone to damage. This case is similar to the valuable items as well.
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Type of Coverage
The type of coverage also affects the moving insurance rate. For instance, full value protection, which provides greater insurance coverage, is more expensive than released value coverage, which offers limited protection at a lower cost.
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Seasonality
The move mostly happens during summer or holidays, so the local moving services demand higher insurance rates during these seasons.
What Does Moving Insurance Cover?
Here’s a rundown of what moving insurance covers:
- Damages on belongings during the loading or unloading process
- Damages on belongings during the packing or unpacking process by movers
- If any belongings get lost, stolen, damaged, or destroyed during transit
- Any other damages caused by moving services
When to Purchase Moving Insurance?
The timeframe to purchase moving services begins when you begin the moving process. So it would be best to start immediately.
The importance of getting insurance before the move is the adequate time to review the available options. You can research many cost-effective options for your situation and make the best decision.
Another importance of getting insurance before the move is that you can guarantee liability for lost or damaged possessions. The correct insurance policy will shield your items so that you can also get compensation if they get lost or damaged.
Moving insurance also offers peace of mind and safeguards your items from unforeseen accidents, so getting moving insurance before the move is necessary.
How to Purchase Moving Insurance
Here’s how to purchase moving insurance:
Step 1: Research and compare moving insurance options
As there are many moving insurance in the market, compare options, prices, and coverage, and choose the best one.
Step 2: Research reputable insurers
The best way to find a reputable insurer is to review their reputation and examine their license for the state they’re operating in.
Step 3: Read the terms and conditions
Ensure that you clearly understand the terms and conditions before signing the policy. If you need clarification, ask your insurer about the exclusions and limitations affecting insurance coverage.
Step 4: Purchase the insurance policy
After selecting the policy that meets your budget and requirements, purchase it immediately and ensure your belongings before the move.
Do You Need Moving Insurance?
The best thing one can do is hire professional movers who are insured. However, understanding moving insurance types and choosing the best moving insurance coverage for your items within your budget helps shield your belongings from unpredictable events.
So, whether you are moving across any town or state, moving insurance is a wise investment for protecting the things you care about the most.
