Moving is stressful.
Giving all your worldly possessions to a moving truck to transport to the next stage of your life? That’s just scary.
Here’s the scary part most people don’t think about until it’s too late…
By default, most moving companies only provide limited liability coverage on your belongings. That means 60 cents per pound, per damaged item limited.
If your 50 pound flatscreen TV somehow gets destroyed during transit you’ll be reimbursed $30 for a TV that probably cost you $1,500+.
That isn’t insurance. That’s false hope.
Luckily there is a solution: Moving insurance. But if you don’t understand how it works, you could end up losing money instead of saving it. To help you out, here’s everything you need to know about moving insurance.
What you’ll Discover:
- What Is Moving Insurance?
- Coverage Levels: Why They Matter More Than Most Think
- The 3 Types of Moving Insurance
- What Moving Insurance Covers (& What Isn’t Covered)
- Filing a Claim: What to Do If Your Items Are Damaged
- Getting Covered: Tips for Before Moving Day
What Is Moving Insurance?
Moving insurance, also known as valuation coverage or transit protection, refers to insurance that covers your possessions while they’re in transit from your old home to your new home. Certain plans also cover your belongings while in storage temporarily during the move.
Moving insurance is different than regular renters or homeowners insurance.
Standard insurance only covers things like fire, burglary, and accidents off your property. It doesn’t cover scratches, chips, or dings incurred while furniture is moved from place to place. Moving insurance was created specifically to cover that gap.
Coverage Levels: Why They Matter More Than Most Think
You’ve got to pay attention here.
When trusted moving companies in Maryland and other reputable moving services provide you with a quote, federal law mandates that they offer you two different levels of liability coverage if you’re moving across state lines. Knowing the difference between the two can mean the difference between minor financial setbacks and major headaches.
One is minimal protection at no extra cost. The other is actual, substantial protection at an additional cost. Figuring out which option is best for you before you sign your contract is one of the most important decisions you’ll make during your move.
Here’s the thing. The average American household has between $25,000 – $100,000 worth of goods in it. It sounds hard to believe, but when furniture, electronics, jewelry and everything else is accounted for, it all adds up quickly.
The average household is worth more than most folks think. So leaving everything you own up to the basic 60 cents per pound rate is a gamble you know you shouldn’t take, but may do anyways because…you don’t know you’re taking it.
The 3 Types of Moving Insurance
Released Value Protection
This is the default protection that most movers will automatically provide to you at no extra charge. It only provides you with 60 cents per pound per damaged item. It’s better than having no coverage at all, but that’s about it.
Full Value Protection
Full value coverage will repair, replace or reimburse you for the current market value of any lost or damaged item. According to Progressive, full value protection will cost you roughly 1% of your total declared belongings value. If you have $75,000 worth of goods, you should expect to pay around $750.
Which brings us to…
Third Party Moving Insurance
If you have an especially long-distance move or you just don’t trust the moving company with all of your valuables, then you can purchase third-party insurance. Third party insurers will provide you with your own standalone transit policy that typically offers broader coverage, higher liability limits, and will replace items at full cost rather than depreciated cost. It’s the highest level of protection you can get.
What Moving Insurance Covers (& What Isn’t Covered)
Here are some of the basics.
Depending on your policy, moving insurance can cover:
- Theft during transit or storage
- Fire/the moving truck getting into an accident
- Items being damaged during loading/unloading by the movers
- Damage from inclement weather events
- Items going missing during transit
Moving insurance does not cover:
- Damage due to inadequate packing by the homeowner
- Items that were already damaged prior to the move
- Mechanical failure on electronics already broken before the move
Pro-tip: Homeowners insurance likely does NOT cover damage to items caused by the movers. Yes, that’s correct. Default insurance won’t cover that.
Filing a Claim: What to Do If Your Items Are Damaged
Don’t let this happen to you.
If something does get damaged during your move, here are the basic steps to file a claim.
- Inspect all of your items upon delivery. Before the movers leave make sure everything you sent with them arrives safely.
- Document any damage. Take photos and write down any damages you find immediately.
- Document damage on the delivery receipt. Don’t sign the receipt until you and the movers have both noted any damage to the inventory list.
- Notify the moving company in writing of damage. You should do this as soon as possible.
- File a claim. Send in your claim according to the deadlines in your policy. This is typically 30-90 days.
The more proof you have of an item’s condition before moving day and after delivery, the better. Take photos of expensive items before boxing them up. Hang onto receipts and appraisals for valuable items.
Getting Covered: Tips for Before Moving Day
Protection only goes so far. Here are some tips to make sure you get covered.
- Make an inventory list of all your belongings and accurately value each item.
- Put anything worth over $100 a pound in writing before the move starts.
- Have the movers pack your belongings where possible. If you pack something on your own chances are the insurance won’t cover it.
- Understand what your homeowners or renters insurance covers before you purchase a moving insurance policy.
- Get third party insurance if this is a long-distance move or you have high-value items.=
Take time to do your research before moving day comes. Don’t wait until the last minute.
Before You Sign Anything…
Let’s review:
- Moving insurance covers your belongings during transit.
- Released value is the minimum coverage provided at no cost.
- Full value coverage protects you up to whatever value you declare.
- Third party insurance provides the highest level of protection.
- Moving insurance doesn’t cover pre-existing damage.
Deciding which level of moving insurance you want can be a daunting task. But if you understand the basics and know what you’re looking for, you’ll be just fine. Moving companies transport your stuff. Moving insurance protects your investments. Value both.
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