Almost nothing in the world is guaranteed. Especially not
relocations, be they long-distance or local. Anything can happen in such
a complicated process, as there are so many "moving parts" involved.
Naturally, it is in our best interest to try and minimize the chances of
something wrong happening or to have a solution if push comes to shove. And
this is where moving insurance comes into play. At Light Like The Pros, we cover a range of topics to benefit
you, the reader, and today we will be taking a deeper look into this particular
form of protection. We will be covering what exactly is moving insurance, why
it is important to you, and what options you have at your disposal.
What is Moving Insurance?
In a nutshell, you will be protecting your items during a
relocation process by purchasing moving insurance. All the major moving
companies will require you to have at least some form of insurance before they
agree to relocate your belongings. Now, they do provide free coverage, to a
degree, as they are required by law to do it. But that coverage is not
exactly ideal, and it will only mitigate a potential loss, not altogether
remove it. To be perfectly honest, you can't expect to have great protection
from a free insurance policy. It would be like if you wanted to upgrade your kitchen for free and then
realize that it would look almost the same as your old one. For the best
results, you will need to splurge a bit more.
Why Should You Get Moving Insurance?
The answer to this question depends on each person's
mindset. If you cannot deal with any significant loss, then yes, you
absolutely need adequate moving insurance. It will help you stay calm
and collected, knowing that whatever happens, you will be alright. But on the
other side, people that are comfortable with taking risks might be able to get
away without it. Going into relocation without insurance is a gamble;
there's no other way about it.
However, by choosing trustworthy and reliable movers, you
can minimize this risk. You will want your moving company to really know the
area you will be relocating from (and to), as that will yield the best
results. Therefore, try to find decent experts from your neighborhood for your relocation.
That will provide you with the best chances of not needing insurance in the
first place. Now, as we have mentioned previously, nothing is completely
guaranteed. Accidents can happen to the best of us, and that is where
having good coverage comes in handy.
Professional Moving Companies Offer Two Different Types of Coverage
If you are planning on purchasing coverage from your relocation
specialists, they will be able to provide you with these two types:
- Released value
coverage
- Full value
protection
Of course, you can always buy additional insurance from a
third party. In fact, the best moving companies also work with an insurance
agency, which will be able to offer you other deals as well. But let's take a
look at the "basic" premises that movers provide.
Released Value Coverage
If you are moving on a budget and have no money to spend on
additional insurance, released value coverage is what you will get. It is
free, and it covers your belongings in case of damage or loss. However,
your reimbursement will vary by the weight of an item. Usually, this amount is 60
cents per pound of weight. You can already see the colossal issue with this
valuation. For example, if your movers end up losing your brand new wireless earbuds, you will get a few
cents to replace them. Basically, if anything happens to your valuables, you
will be getting only a tiny fraction of the money they are actually worth.
But the policy is free, and it is better than nothing. The second option is a
bit better (and more expensive).
Full Value Protection
This coverage type is common in interstate, long-distance
relocations. It will cost extra, inflating the price of the move, but
the company offering it will have to refund you based on the current value
of your belongings if anything goes wrong. While this sounds great in
theory and should be exactly what you need, there are a few issues with it.
First, the moving company is the one that determines the
current value of your belongings. Second, when it comes to
"mundane" items, which are not worth more than $100 per pound, they
get "valuated" at $6 per pound. This is the standard amount that you
can increase (and pay more for it) before your movers take off. The end
price and the coverage come down to how much risk you will be willing to
shoulder.
Third-Party Moving Insurance
If you want to combine the best results with minimum risk, you
will want to purchase an insurance policy from a third party. You can buy a
plan that will cover both the moving truck and your own vehicle if you so wish.
The price for it is usually around 1% to 2% of the total combined value of
your belongings. It is worth noting that you can accomplish a similar
effect by working with your movers to get to the same price point with
full-value protection.
But if your items are particularly valuable, this might be a
lot of money. Even so, it is recommended that you insure your assets,
especially if this is the case. If money is tight, you might want to borrow
some for this purpose. You can try asking your friends and family,
your bank, or even borrow from an online platform! The important thing
is that you are confident that you will not suffer a substantial financial
loss.
Renters and Homeowner’s Insurance
Lastly, let's talk about some standard moving insurance plans that most of us already have. You may think that having one of these two insurance types is enough. And in some cases, albeit very limited ones, you would be right. However, most renters and homeowner's policies will not reimburse you for an item damaged or lost while in transport. Before you rely on your current insurance policy, do your homework and check what it actually covers. You might be surprised!
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