What Is Moving Insurance & How You Can Pick The Right One!
There can be quite a large number of things to look after when moving house, regardless of whether you’re moving down the street or across the country. This could be overwhelming for many of us, which could then mean that we’ll overlook a few things.
While the majority of us will know to make sure that any moving company we hire is reputable, there are some aspects that you might overlook when hiring them. Prominent among these is moving insurance, which can often be a vital aspect of the process.
The main reason for this is that getting moving insurance means that you shouldn’t have to worry about replacing or repairing damaged belongings. With how important this can be, it’s highly recommended that you get some when you’re moving house.
While this will be an extra cost, you shouldn’t be out of pocket should any of your items be damaged while in transit. Despite this, many of us might not know too much about moving insurance, especially when it comes to the various types.
You mind find that choosing moving insurance can be much more complicated than you initially thought. However, this doesn’t have to be true. While there are a few things that you’ll need to know, you should find that the process is much more straightforward than you thought.
Though you’ll still have to spend time debating which type of moving insurance you buy, you should be on a firm footing once you know what’s involved.
What Is Moving Insurance?
Before looking into whether or not you should get moving insurance, it’s worth taking a look at what it actually is. While it’s often referred to as insurance, it isn’t. Instead, what you’ll be taking advantage of is what’s called a ‘valuation,’ which is typically offered by the majority of high-quality moving companies.
Despite not being insurance, it functions almost exactly like it. By utilizing this, the moving company will compensate you for any lost or damaged belongings. However, since moving companies aren’t allowed to sell insurance, they use valuations instead, which operate slightly differently to typical insurance.
As such, there will usually be a variety of regulatory differences between the two, although these shouldn’t affect how you use it. This should mean that you’ll have a certain amount of guaranteed protection against any loss or damage when your belongings are being moved.
What Are The Different Types Of Moving Insurance?
What you might not have realized is that there are a few types of moving insurance, each of which has specific pros and cons. The majority of high-quality moving companies will offer all of these, although you should know what’s involved with each of these before you buy.
In the majority of cases, the primary differences will be seen in how much coverage you’ll have and how much you should be expected to pay. However, there are still a few things that you’ll need to be aware of when choosing between them.
Released Value Protection
This is the most basic form of moving insurance and only offers a minimal amount of protection. Typically, you shouldn’t have to pay anything for this valuation, as the majority of moving companies should have no problem offering. However, you’ll still need to bring this up with them and have it written into your contract.
As cost-effective as this is, it might not offer too much protection against damage. This is primarily because the coverage will only provide 60 cents per pound of weight. As a result, you’ll get significantly less for any damaged belongings than you may have expected.
For example, if you have a TV that weighs 50 pounds, you’ll get $30 if it’s destroyed, regardless of how much it actually cost. This will typically mean that you’ll get a cheque for the item instead of being able to have it repaired or replaced, which could be quite a significant drawback.
Full Value Protection
Naturally, released cost protection may not be the best option for many people, as they’ll often need to transport quite valuable belongings. This is where full value protection comes in, as it should cover the entire cost of repairing or replacing your belongings. Since this is a much more comprehensive option, it should cost more than you may have thought.
While there are some limitations to full value protection, it should mean that moving companies are liable for any damaged or lost items during the process. This should mean that you’ll have a significant amount of peace of mind while your belongings are being moved.
However, there are a variety of things that you’ll need to be aware of when choosing this option. In the majority of cases, moving companies will have a minimum value that your belongings will have to exceed before you can take advantage of full value protection.
Alongside this, you’ll have to determine the value of the goods that you’re having moved. Typically, this will vary from $4 to $6 per pound. When combined with the weight of your overall belongings, you should be able to figure out how much you’d be likely to receive if your belongings were lost or damaged.
Should you have to file a claim, your moving company will be able to respond in one of three ways:
- Repair the item to a professional standard;
- Replace it with something of a comparable value, or;
- Reimburse you for the cost of repairs or replacing the item.
However, it’s possible that you’ll have to pay a deductible when making a claim. The cost of this will vary from company to company, and even case to case. As such, you’ll need to be aware of this before you hire any moving company.
Alongside this, you may have to pay extra for valuations on items that cost more than $100 per pound. How much extra you’ll need to pay could vary drastically depending on which company you choose. Given the value of the item, however, this could be well-recommended.
Third Party Options
What you might not have realized is that there could be a few third-party alternatives to getting moving insurance. However, these can often depend on your specific circumstances. One of the most notable of these is any homeowner’s or renter’s insurance you might have.
Depending on your policy, you may be able to use this coverage for when you’re moving, which should negate the need for moving insurance. As such, it’s recommended that you look at your homeowner’s insurance to see if this is the case. Typically, you’ll have to contact your insurance company to determine this.
What You Should Expect To Pay
Naturally, the majority of us will want to know how much they’ll have to pay when they’re buying moving insurance. While the most effective way of knowing this is to check with local moving companies, there are a few other things that you should be aware of before you do so.
In some cases, you might not have to buy moving insurance, as you could be covered by your homeowner’s or renter’s insurance. This means that you should check the coverage that you already have before you consider getting a moving valuation. Should it not cover your belongings when they’re being moved, then you’ll have to start comparing policies.
Typically, you should first decide whether you want full or released value protection, as there could be a dramatic difference in cost between them. You should also know the approximate value of your belongings, as this will what the cost of your insurance will be based on.
You should usually have to pay 1% of this value upfront to activate the valuation. As such, adding up the value of your belongings should be an accurate way of determining how much you should pay for the moving insurance.
However, this can often vary significantly from company to company, so you might need to contact several moving firms to get quotes from them. Alongside this, some businesses may require you to pay a deductible in the event of a claim.
This is something that you’ll need to be aware of when choosing which company you should choose. While this might not be a large amount, it’s something that the majority of us might want to avoid.
You should always make sure that you’re aware of the costs associated with your policy before you sign any documents. This will make sure that you don’t have any unexpected costs if anything gets broken or lost. You should also apply this to the overall process, which will mean that there aren’t any unexpected surprises when you’re moving.
How To Choose Which Moving Insurance Is Right For You
While many of us will want to get moving insurance, some might find it challenging to determine which type they should get. While you might assume that choosing between them is complicated, it doesn’t have to be. You should focus on a few aspects and take certain steps when doing so.
The first thing you should do is determine the value of your belongings. While this might take a significant amount of time and effort, it could save you a considerable amount of hassle and money in the long-term. When you’re doing so, there is a variety of things that you should ask yourself.
For example, you should see whether there’s any existing damage, roughly how much it’s worth on the market, and much more. Alongside this, you’ll need to figure out how much the items weigh. This is mainly because many companies will determine the cost of insurance by its weight, among other things.
As such, knowing these two pieces of information should help you figure out how much the move and its insurance may cost. It will also help you choose between full value and released value protection. The main reason for doing this is making sure that you’re able to get the right amount of value when you’re picking these types of valuation.
In the majority of cases, you’ll need to consider the cost of the insurance and any other related expenses should anything be damaged or lost. As such, you’ll need to determine whether your belongings are worth the investment that you’ll have to pay when getting the valuation.
There can be a variety of other things that could affect your choice of moving insurance. In the majority of cases, these can vary significantly from company to company. For example, how far your moving and where you’re moving to could play a significant role in how much you’ll have to pay for your valuation.
As a rule of thumb, you should opt to choose full value protection if you have any valuable belongings that will need to be moved. While these will typically mean that you might have to pay a large upfront cost, it could be worth having some extra peace of mind during the process.
What To Remember When Buying Moving Insurance
While which moving insurance you should buy will depend on your personal preferences, there are a few things that you’ll need to keep in mind when doing so. This should mean that you’ll be in the best position possible to choose the right valuation for your needs.
While the cost of the insurance will be one of the largest parts of this, it’s often one of the last things you should consider. Instead, you’ll need to make sure that you’re getting a significant amount of protection for your belongings, which means focusing on value for money.
You should find that you’ll be able to get different quotes from various companies, so it’s often worth asking around. Other than price, you’ll need to keep a few specific things in your head. Some of the more notable factors you should keep in mind include:
- Despite being referred to as insurance, it isn’t. Instead, it’s what’s known as a coverage valuation. With how you’ll be using it, however, it effectively acts as a type of insurance.
- While released value protection is much more affordable, it doesn’t offer much protection. As a result, you may be somewhat out of pocket if any of your belongings need to be repaired.
- Full value protection is quite comprehensive, although you’ll need to pay quite a large upfront cost. This will typically be 1% of your belonging’s value. As such, you should be prepared to have quite a significant amount of money when you first get the valuation.
- Full value protection might not cover any belongings that cost more than $100 per pound. Should you have any of these belongings, then you may need to purchase extra insurance.
- Which insurance you get for your move depends on how much you value your goods. As such, it’s vital that you get it for more expensive belongings, although if there are things that you wouldn’t mind getting rid of or losing, then it might not be as crucial.
By keeping each of the above in mind, you should be able to make sure that you buy the right moving insurance for your needs. Though you might want to put a significant amount of emphasis on the quotes you get for it, price shouldn’t be the first aspect that you focus on.
Instead, you should make sure that you’ll be getting a large amount of protection against possible damage. While cheaper options may be much more affordable, they often will not cover the full cost of repairs. As such, it’s recommended that you choose one that offers as much protection as possible while still being relatively affordable.