Many people think they don’t need moving insurance. Either they trust that the moving company will cover any damages to their property that happen during the move, or if they’re doing a DIY move then they feel they’ll be able to avoid any damage or injuries.
These people could not be more wrong!
You may think that something not covered by the moving company will be covered from your homeowner’s or renter’s insurance. Yet while both may cover some of the damage, they should not be the only insurance you rely on.
You’ll want to make absolutely, 100% sure your belongings are covered in case of any unexpected damages.
Moving companies provide limited coverage, so be sure to read your contract to find out what is covered and how much it is covered for.
This is the reason: Many moving companies will provide what is called “valuation” and not insurance.
Damages that are Covered
There are different types of assessments that are offered by various moving companies. Hopefully this information will help you to make a decision on which moving company to use.
Complete Value Protection:
This is one of the better options offered by the moving companies. However, it does not cover everything…
It only covers property that has been damaged, lost, or destroyed. It will also pay for property repairs.
This coverage does have deductibles, and there is a minimum amount that will be covered. Be sure to read the fine print when this coverage is being offered.
Assessed Value Protection:
This is good if your property is valuable but small in size.
This coverage is based on costs as opposed to the weight of the items. You can purchase a specified amount of coverage, (for example $1,000 in value).
If you purchase this policy, write it on your bills of lading so your moving company will have to honour it.
Declared Value Protection by Weight:
The moving company will need to take into consideration the weight of all of your items and then multiply the weight by a coverage amount per pound.
For example, if the company offers $2 per weight and your items weight 25,000 pounds the moving company will need to pay out $50,000 if all your property is damaged.
Furthermore, the amount paid to you will be based on the depreciated value of the items that are lost or destroyed.
Contracts With Moving Companies
There are some things that you may not know about the contract you sign with a moving company, or that you may not be entirely clear on.
The contract may state that the moving company is not liable for damages that occurred during the move. This means that if the boxes fall while in the truck and something is damaged, the moving company shall not be responsible for those damages.
The company may also state they will not be liable for items that you have packed yourself.
If your employer is paying for the relocation and they have paid the moving company then there is no guarantee that your items will be covered. Be sure to get a contact number and a copy of the contract so you know what, if anything, is covered. You may need to purchase your own moving insurance.
If you have questions about an upcoming move, feel free to get in touch with us. We’ll be happy to help.
Will Renters of Homeowner’s Insurance Cover Damages?
After reading the contract with your chosen movers, you may be thinking about what you should do next.
The first thing you should do is to contact your insurance agent to see if your property will be covered during the move. Many homeowner’s policies will cover some of the damage, but that amount is usually set at around 10 percent. With this level of coverage, you should seriously consider purchasing moving insurance. This will cover your property at any point that it is in transit, and this is often where the damage happens.
There are many different types of moving insurance, but most people choose to purchase a policy that includes Goods in Transit. This will cover the items while they are moving and includes coverage from home to the moving truck, items in the back of the truck while it is moving, and from truck to your new home.
Moving companies are often willing to sell you insurance coverage, but be sure to check with your insurance agent about the specifics. They can help you to determine if this policy is needed and may be able to recommend companies that have the best coverage for you and your moving needs.
When moving companies offer moving insurance, you may not always be getting the best policy; you may very well get better coverage going through your insurance agent.