Moving is a time when you need to make a lot of decisions. That is why most people say that it is one of the most stressful events in their life. However, it truly does not have to be that stressful, as long as you make informed decisions. We have created this useful guide about whether moving insurance is truly necessary, or it will just cost you unnecessary money. The truth is, a lot depends on your individual moving situation, so after this article, you will be able to determine whether or not you need moving insurance. In any case, we recommend that you hire reliable movers for your relocation, especially if you are moving long-distance.
What is moving insurance?
If you hire a moving company, you will see that they can offer you several types of moving insurance. However, this is not actually real moving insurance, it is a valuation. This means that a moving company has limits when it comes to reimbursing you for items lost or damaged during the relocation. We will mention these types of valuation, as well as the moving insurance from a third-party provider. The real moving insurance has different conditions, and again, depending on your relocation situation, you may want to take that one, too.
The types of moving insurance
As we have already mentioned, there are several types of moving insurance. We will now lay out the advantages and disadvantages of using any of them, and explain how they work.
Released value protection
This type of moving insurance is what you have when you hire a moving company in the first place. It is completely free of charge. While this sounds great, in case some of your items get lost or damaged, you would be compensated around 60 cents per pound. You can agree that this is not much, especially if you have a lot of valuable items. This option is ideal for students coming home for a summer break, or if you have but a few valuable items to relocate.
Full value protection
This type of moving insurance offers much more when it comes to your valuable items. It is a great option when you need to move long-distance for example. You will need to pay 1% of the total value of your items before the relocation takes place. However, it is definitely worth it, as you can get a lot more money in case of an accident.
Here is what you can get if you decide to use this moving insurance option.
- The moving company will replace your item – If any of your items got lost or damaged, the moving company will replace them with the same one. This is excellent, except if the item in question has a great sentimental value.
- The moving company will repair the item for you – If the item is just damaged and can be repaired, the moving company will offer this solution. The item will then basically be returned to the previous condition, so this is a great option.
- Finally, the moving company will reimburse you for the current marketplace value of the item – If the item cannot be replaced or repaired, the moving company will reimburse you. They will not reimburse you for the price at which you bought the item, but rather for the current marketplace value of the item, which sounds quite fair.
Items worth more than $100 per pound
It is really important to know the current marketplace value of your items as if the item is too expensive, they have the right to refuse reimbursement. So, all you need to do is to check the current value, and in case you do have such items, talk directly to your moving company, and check your options. Not all moving companies will offer moving insurance for such items, so it is best to talk to them directly.
Third-party moving insurance
If the above-mentioned moving insurance types are not suitable for you, you can always get moving insurance from a third-party provider. If you have a lot of jewelry for example, which does not weigh a lot, but definitely costs a lot, it is best to have this type of moving insurance. We will now see why.
What is the difference between third-party moving insurance and moving company insurance?
The first difference is in the amount that you will be reimbursed. The second difference is in the situations in which you will and will not be reimbursed.
When will the moving company not reimburse you?
- Natural disaster – In case of flood, fire, hurricanes, or any other natural disaster, you will not be reimbursed by your moving company in case something happens to your items. That will happen only if you have third-party moving insurance.
- If you packed the items on your own – When you hire a moving company to relocate your items but want to pack the items on your own, you may be giving up the moving insurance part. The moving company is only reliable for the items that they packed and relocated.
- You were late to file a claim – As soon as you get to your new home, go through all of your belongings, and check for any damage or loss. If there is some, file a complaint against the moving company right away. Although they have a time-frame of nine months for you to file a claim, it is easier to make your point as soon as the relocation happened.
Is moving insurance necessary?
To sum up, if you are moving long-distance, interstate, or you need to move valuable items, we highly recommend having moving insurance. Even if you are moving locally, the amount of stress is much lower when you have at least some type of moving insurance. Accidents can happen even to the best of moving companies, so it is great to have a back-up plan. We hope you don`t need insurance or to file a claim at all, of course. Good luck!