Understanding The In’s and Out’s of Moving Insurance
Why You Need Moving Insurance and How to Get It
Moving to a new home can be an exciting yet stressful time. As you prepare for the big move, you realize just how many possessions you’ve accumulated over the years that need to be carefully packed up and transported. All that stuff represents a significant investment – furniture, appliances, clothing, electronics, and cherished keepsakes.
What if something happens to it all during the move? Accidents and mixups do occur, despite the best efforts of moving companies. Protecting your belongings with moving insurance brings peace of mind.
What Does Moving Insurance Cover?
Moving insurance, also called valuation coverage or transit protection, covers loss or damage to your household goods while they are being transported from your old residence to the new one. Depending on your policy, coverage may even extend to when goods are temporarily stored. Most plans insure household items only, not automobiles or specialty equipment.
Standard moving insurance protects against:
- Accidental breakage – a box falls off the truck and your dishes shatter
- Loss – a moving box gets misplaced
- Damage from mishandling – your furniture gets scraped going around a tight corner
- Severe weather incidents – a tornado flips over the moving truck
- Theft – someone breaks into the truck and steals your boxes. It’s important to hire reputable moving companies for this reason.
- Fire – the truck engine catches fire and the shipment is partially burned
Polices do not typically cover damage you cause yourself through inferior packing methods or pre-existing flaws in an item.
Who Offers Moving Insurance?
You can obtain moving insurance from several sources:
Your Homeowners or Renters Policy
Some standard homeowner and renter policies include a small degree of coverage for moving personal possessions. It varies from around $2,000 up to $100,000. While helpful, for a major move it is often not enough to fully cover all your belongings.
The Moving Company
By federal regulation, long distance moving companies are required to offer their own basic transit protection to customers transporting items across state lines, at no added cost. There are two tiers available – released value and full value coverage. Released value only reimburses you around 60 cents per pound of damaged goods, while full value coverage gives you their depreciated dollar value. Moving companies may also offer extra valuation tiers for more money.
Third Party Insurance Providers
Several insurance companies sell standalone moving insurance policies that give you enhanced coverage options compared to what moving companies alone provide. With a third party provider, you can usually insure your shipment for its estimated full replacement value rather than depreciated value. Premiums vary but often cost 1% to 5% of your coverage limit.
What Factors Determine Cost?
As with any other type of insurance, cost depends mainly on the dollar value of belongings you want to cover and the extent of protection you select. Someone insuring $10,000 worth of average household goods will pay less than a person covering $500,000 worth of luxury furnishings and artwork. Here are some key pricing factors:
- Shipment value – The higher you value your overall shipment for coverage purposes, the more premiums will be.
- Deductible – Choosing a policy with a $500 or $1,000 deductible rather than a $0 deductible lowers rates.
- Distance – Long distance interstate moves cost more to insure than local moves within 50 miles.
- Coverage level – Replacement cost coverage for a new same item is more than depreciated cost compensation.
- Valuables – Insuring named high value items like artwork rather than unspecified boxes increases cost.
- Floater coverage – Insuring goods while stored before/after the move adds expense.
To keep moving insurance affordable, set coverage limits close to what you believe is the true replacement value of possessions being moved.
What is Not Covered?
While moving insurance covers a wide range of mishaps, some things are specifically excluded. Make sure to review the fine print so you understand gaps. Typical exclusions are:
- Cash, coins, important documents
- Plants, animals, perishable foods
- Automobiles and boats
- Loss occurring when you move items yourself
- Normal wear and minor damage from shaking in transit
- Valuables worth over $100 per pound not specifically declared
- Loss from nuclear events or acts of war
- Intentional damage or illegal activity
Maintenance repairs, cleaning costs, loss of use, and emotional distress are also generally excluded.
Released Value Protection
Released value protection is a mandatory basic liability coverage long distance moving companies include free with interstate (over 50 mile) moves. Here are key aspects:
- Covers goods at 60 cents per pound per item
- You must waive your right to full reimbursement in writing
- Items valued over $100 per pound require extra declaration
While released value protection meets minimum requirements for your mover, compensation can be inadequate if they damage expensive belongings. It is best to upgrade.
Full Value Protection
Full value protection is the next level up that moving companies offer, at your own expense. Here are the basics:
- Compensates based on depreciated value of goods lost or damaged, up to stated coverage maximum
- Typical fee is 1% of your declared shipment value
- Moving company decides whether to repair items or reimburse you money
Full value protection ensures you get back the dollar value of damaged items, instead of a tiny fraction. But compensation is still capped at the coverage limit you set, which may not be enough for expensive possessions.
Third Party Relocation Insurance
For high-end moves, getting extra moving insurance through a third party provider offers the most robust protection. Benefits include:
Replacement cost coverage – Rather than depreciated value, insurers replace destroyed items with equal new models.
No mandatory waivers – You retain full legal liability rights against movers.
Higher value limits – Insure luxury, collectibles, and fine art for greater amounts.
Loss of use coverage – Provides reimbursement if damaged goods take excessive time to repair/replace.
Floaters – Protect stored goods before/after transport under one seamless policy.
Just be prepared to provide a detailed home inventory and valued list of items over $500 to support claims.
How to Get Moving Insurance Quotes
Shopping insurance quotes from various companies ensures you find the best rate:
Check existing policies – Call your homeowners/renters insurer first about coverage for moving.
Ask prospective movers – Inquire what protection levels they offer and associated fees.
Research insurers – National firms like USAA and State Farm sell policies. Find ones operating locally.
Use an insurance marketplace – Websites let you compare quotes from multiple insurers at once.
Provide the same shipment details like move dates, destinations, inventory lists, and value estimates to every company so quotes are standardized. Then compare based on pricing, levels of protection, customer service reputation and convenience. Some companies will provide relocation assistance that may include insurance information.
How to File a Moving Insurance Claim
Despite best packing efforts and hiring a quality moving company, sometimes loss or destruction happens. Here are tips for filing an effective claim:
Take photos – Document damage immediately while goods are still in the truck or warehouse storage facility. Date/time stamp images.
Inventory missing/damaged items – Detail exactly which boxes are affected and label contents of each one from your move documents.
Estimate repair/replacement values – Research what it would cost to either fix damaged goods or buy equivalents brand new if destroyed beyond salvation.
Call mover about claim – For their protection plans, you must start the claims process with them before contacting a third party insurer.
Submit claim form ASAP – Provide requested documentation like repair invoices, photos, inventory lists and value estimates.
Follow up persistently – Keep contacting both the mover and insurer until you receive a fair settlement offer in writing.
Ideally you never need to file a moving insurance claim. But having coverage brings peace of mind in case disaster strikes. Compare policies smartly so you can rest assured your belongings are protected during their journey to your new home.