Moving insurance offers protection of property against damage or losses when in transit by local movers. Below is an overview of the various types of insurance available for local moves and ways of identifying the right insurance coverage:
Insurance Options for Local Moves
Moving companies can provide their insurance policies or provide customers with third-party insurance. Some people may think insurance for a local move is a waste of money. When moving already comes with many other costs, understandably, many want to save money where they can.
Moving insurance is not one of the places you should cut costs. With insurance you can focus on everything else besides losing money from broken belongings, transport delays, or natural disasters.
Basic Liability Coverage
Basic liability coverage is the most common type of insurance for local moves. It covers any damage to items during the move, like scratches, dents, or broken items. The amount of coverage varies by local movers and may also depend on the value of the goods in transit.
This type of coverage does not cover valuable items like jewelry and electronics. You may need extra coverage for certain items. Customers should consider if the deductible on this coverage is too high to afford in the event of a claim.
Full-value Protection
Full-value protection is comprehensive insurance covering the cost to repair or replace damaged items up to the declared value. This type of coverage is more expensive than basic liability, but it offers higher payouts if a claim is made.
The customer should know exclusions and limitations like depreciation deductions and labor costs. They must also declare an estimated value for all items to be covered.
People moving should also double check if coverage is limited up to a certain monetary value. Carefully read the company policy to ensure you don’t have any unexpected losses.
Cost for coverage is usually calculated based on a certain percentage of the entire shipment’s value. Once you know the company’s policy, you can determine if the cost of coverage is worth the price of the items.
Actual Cash Value Coverage
Actual cash value (ACV) coverage protects damaged or lost items up to market value. This type of coverage is more affordable than full-value protection but also pays less if a claim is made.
The customer should compare the cost and benefits of ACV with other options before deciding. Customers should be aware of any exclusions listed in the policy.
Some things that may be excluded include perishables and dangerous or hazardous materials, unless approved of by the moving company. Packing your own items may also negate your coverage. Damage caused by natural disasters like tornadoes may not be covered either.
Third-party Insurance
Third-party insurance provides coverage through a third party, like cargo or transportation insurance. The customer can purchase this type of policy from their mover or directly from the insurer.
It covers damage or loss to items in transit and includes higher payouts than basic liability coverage. It also offers additional features like reimbursement for lost time due to delays.
People often purchase third-party insurance to provide gap coverage. While full-value protection from the moving company might not cover your items in case of damage from natural disasters, mildew, mold, or insects, a third-party insurance company might be able to provide coverage instead. Cost is usually determined by a percentage of the shipment’s value.
Additional Coverage Options
Customers may also choose additional coverage, like coverage for fragile items, storage insurance, or coverage for transit delays. Especially expensive items like jewelry are easy to lose.
Because of their high cost, many insurance companies won’t offer coverage for jewelry. A third-party company will have jewelry insurance available. These options provide extra protection for specific situations but can be more expensive than basic liability or full-value protection.
Factors to Consider When Choosing an Insurance
Estimate the Value of Your Belongings
When selecting insurance coverage, customers should estimate the value of their belongings. This includes considering any depreciation due to age, wear, and tear. Full-value protection requires an accurate estimation of the value of items to declare the correct amount on the policy. Customers should also reference receipts or proof of purchase to verify accuracy.
Assess the Risks Involved in Your Move
When choosing insurance coverage, customers should consider the estimated value of their belongings and assess the risks involved in their move. Customers should also compare costs with other options to get the best value.
They should understand what is covered and any exclusions or limitations that may apply. Customers can also research additional coverage options to provide extra protection for their move.
Compare Insurance Options
When choosing insurance coverage, customers should compare the costs and benefits of policies from different local movers. They should look at features, costs, and any exclusions or limitations that may apply. They may also consider third-party insurance or additional coverage options that can provide extra protection for their move.
Understanding Insurance Claims
Customers should understand the claims process before filing a claim. This involves contacting the insurer to start a claim and providing proof of purchase or receipts for damaged items.
Customers may also be asked to provide photos of the damage and other supporting documents. Once all required information is submitted, the insurance company reviews the claim and determines whether it is approved or denied.
People who are about to move should purchase sufficient coverage and be prepared with all necessary documentation to maximize the chances of a successful claim.
They should take photos and create an inventory of items before moving. Customers should document any damage found during the move and report it promptly to their insurance company.
Do You Need Moving Insurance?
A local move is anything under 50 miles. Accidents can happen at any distance, so if you have a lot of belongings or especially high-value belongings, moving insurance is a good idea. However, if you are not worried about damaged belongings or your items are not high-value, then consider not purchasing moving insurance.
Verify Your Local Movers Have Insurance
Having adequate insurance for a local move protects you and your belongings when relocating your home or office. Customers should compare different options from local movers to find the best coverage for their needs. They should also understand the claims process and what could lead to denials to maximize their chances of having a successful claim.
