Everything you need to know about moving insurance

Article posted by on March 01, 2024

Moving to a new home is a big step that comes with a number of challenges, one of which is protecting your belongings during the move. Moving insurance can offer peace of mind, but understanding the different types available and how they work is crucial. In this guide, MovingScam will walk you through everything you need to know about moving insurance, from the types of coverage available to how to file a claim.

Types of Moving Insurance

When it comes to moving insurance, you’ll encounter two main types:

  1. Full Value Protection
  2. Released Value Protection

Full Value Protection covers the full replacement value of any item that gets lost or damaged during the move. This means you’ll receive compensation based on the current market value of your item or a similar replacement. While it offers comprehensive coverage, it typically comes at a higher cost.

guy on a laptop researching everything you need to know about moving insurance before relocating

Finding out everything you need to know about moving insurance types will help you choose the right one

On the other hand, Released Value Protection offers minimal coverage at no additional cost. However, it only provides coverage at a fraction of your belongings’ value, typically around 60 cents per pound per item. This might not be enough if you’re moving valuable items.

What is third-party insurance?

Third-party insurance companies offer extra policies for those seeking additional protection. These can extend coverage beyond what moving companies provide. For example, if you have valuable artwork or electronics, a third-party policy can provide additional protection during the move.

What Does Moving Insurance Cover?

Moving insurance plays a key role in protecting your items during a move. It usually covers any damage or loss that happens in transit. Yet, not everything might be covered. A common exclusion is for items you pack yourself. If these get damaged, the insurance may not cover them.

Why is it vital to check your policy’s specifics and exceptions?

Knowing exactly what your insurance covers helps you avoid surprises if you need to make a claim. For example, if you have valuable items, understanding the coverage details will help you pack your items correctly or decide if you need additional insurance.

guy carrying a sofa

Always make sure to check what your insurance covers, especially if you have special items

Also, being aware of exclusions helps you take extra care with certain items or consider third-party insurance for more protection. This will allow you to secure the right coverage for your move.

Determining Costs

When figuring out how much you’ll pay for moving insurance, think about how much your stuff is worth, how far you’re moving, and the deductible you pick. Here’s how these factors influence your costs and potential payout:

  • Declared value of items: This is about how much your belongings are worth. If you say they’re worth a lot, your insurance premium will go up. But, if something goes wrong, you’ll get better compensation.
  • Move distance: Moving further away could raise your insurance cost. The longer the journey, the higher the chance something might get damaged or lost.
  • Chosen deductible: This is the amount you agree to pay out of pocket if you make a claim. A lower deductible means you pay more for the insurance upfront but less when you claim. A higher deductible reduces your premium, but you’ll pay more if you need to file a claim.

Understanding these factors helps you make smart choices about your moving insurance. You can balance what you’re willing to pay now against what you might need to pay later. This way, you will find a plan that fits your budget and gives you peace of mind during your move.

Filing a Claim

If something goes wrong and your belongings get damaged during the move, you have the right to file a claim against your moving company. It’s important to act quickly. Here’s what you should do:

  • Report the damage right away. Contact your insurance provider as soon as you notice any problems. This step is necessary for a smooth claim process.
  • Gather all necessary documents. You’ll need photos of the damaged items and a list of everything affected. Also, your documentation needs to be clear and detailed.
  • Understand the timeline. After you file your claim, the insurance company will review it. This review can take a few weeks. Knowing this helps set your expectations.
  • Prepare beforehand. Before you even start your move, make sure you know how to file a claim. This knowledge can save you time and stress if something happens.

Being informed and ready can make a big difference.

Selecting Moving Insurance

When selecting moving insurance, start by assessing the total value of your belongings. Think about the items you’re moving and their worth. This step will help you understand how much coverage you need. You might want more comprehensive insurance if you have valuable or sentimental items. Next, consider the potential risks involved in your move. Think about how you’ll need to prepare if you’re moving long distance. You may have some items that require special care. These are all the risks that you need to go over in order to choose the right level of protection.

person writing "fragile" on a box

Assess the type of your items and their value in order to choose the right protection

Now, it’s time to compare quotes from different insurance providers. Don’t just look at the price; pay attention to what each policy covers. Some might offer more comprehensive coverage for a slightly higher price, which could be worth it if you don’t want to worry. Checking insurer reviews is also essential. Look for feedback from other customers about their claims process and customer service. A company with positive reviews is likely to offer a smoother experience if you need to file a claim.

In summary, choose the best coverage by evaluating your belongings, understanding the risks, comparing quotes, and checking insurer reviews. This way, you’ll get the right protection for your needs without overspending.

Understanding Everything You Need to Know About Moving Insurance: Making The Right Choice

Moving insurance provides essential protection for your belongings during a move. No matter what kind of protection you choose, understanding the basics is crucial. Also, take the time to evaluate your options carefully. Everything you need to know about moving insurance ensures you can make the best decision for your needs. With proper coverage, you can transition to your new home with peace of mind.