Understanding Moving Insurance

When a homeowner is about to move, they’ll do much packing and hire movers. During this period, mishaps could occur, and valuable items could be lost or damaged. For that reason, homeowners must take out moving insurance.

Discover more about the importance of moving insurance.

Some homeowner’s policies might not cover valuables during moves.

Does my homeowner’s policy cover my move?

Some homeowner’s policies might not cover valuables during moves. Check the policy or discuss it with an agent to know if the valuables are insured during storage or transit.

How do I become insured for my move?

Moving companies provide insurance packages such as:

• Full replacement value protection or full value protection: This coverage is required by federal law and must be paid. It covers the current market replacement value or offers replacement with something similar or to repair the damaged goods. If a homeowner chooses full value protection, they must get details of their mover’s plan to understand how they decide the replacement value and to know what actions limit the mover’s liability.
• Basic carrier liability or released value coverage: Federal law requires this package, and the liability coverage is free based on weight. After that, 60 cents per pound is charged per item. However, if a one-pound valuable worth over $500 is damaged during transit, it doesn’t come close to paying the replacement value.
• Separate liability insurance: This insurance package is optional, governed by state law, and offered by some movers. It pays for the amount insured less the basic carrier liability cost paid by the mover, which can be up to 60 cents per pound. If you choose this option, ask for a copy of the policy and be clear about the amount of insurance you bought and the price of the coverage.

What happens if I move myself?

Some auto insurance or homeowners’ policies offer limited coverage for items transported in rental or personal vehicles. Therefore, a homeowner must assume the risk if they use their truck to move. Moving companies, however, might offer insurance that covers the driver, the cargo, and the rental vehicle, depending on the cover selected.

How can I file a claim?

Suppose a homeowner has experienced damage or loss and needs to file a claim. They must prove that the damaged or lost item was damaged during the move and not before it. Before a homeowner allows movers to transport their possessions, they should have an inventory list with every valuable item, such as collectibles, jewelry, silverware, etc. This list will support any claim. Another good thing to do is take before and after pictures and file any claim immediately to speed up the reimbursement process.

Seek professional advice

Moving insurance plays a vital role in protecting valuables during transit. To clarify what moving insurance to purchase, speak with a professional provider.