No matter how hard you try to protect your stuff from damage, accidents can happen in every situation. When you hire a moving company to move your belongings, you might feel nervous about leaving your things in the hands of strangers. Questions like, what if the movers are careless and damage your precious stuff, cross your mind. This concern is very likely if you are moving to another state or country and have a lot of precious belongings. You may also be more concerned about your valuables on relocating during the hurricane season to a hurricane-prone area. Having moving insurance for all such reasons is necessary.
What does moving insurance cover?
Generally, moving insurance covers all the damages to your stuff while in transit. This damage may happen due to an earthquake, hurricane, or accidental breakage. You must know the kind of liability your mover provides. Make sure the moving insurance covers all your stuff in case of a mishap during the move. Also, check if your mover offers different liability coverage options.
What is the cost of moving insurance?
The cost of moving insurance depends on many factors. These include the value of your belongings and the type of coverage you opt for. If you get a good amount of coverage in your possession, expect to pay a fat amount.
Generally, the cost of moving insurance can be:
- Free: you will not be charged anything for the federally mandated minimum release value protection for $0.60 per pound, as the price of your move includes this already.
- 1% of valued items: You will have to pay 1% of the total value of the items covered in the full-value protection option in addition to the cost of the move.
- 1% to 5% of the valued items: If you opt for third-party moving insurance, you pay 1% to 5% of the total value of the items covered in addition to the moving costs.
What are the coverage options that a moving company offers?
Every moving company offers the following coverage options:
- Released value protection: it is a federally mandated coverage that provides coverage of $0.60 per pound of your personal belongings. The coverage amount varies from state to state for local moves. This coverage option is free of cost, and the customer gets it automatically on hiring moving services.
- Full-value protection: it covers the actual cash value of the items on the move. For high-value items (something worth more than $100 per pound of its weight), you must inform the mover in writing to get appropriate coverage. There is a charge for full-value protection.
- Third-party: if the moving company does not offer the declared value coverage on your stuff, you can opt for third-party insurance coverage. You can also opt for total loss coverage (provided by a third party). You can replace every belonging when you have this coverage if theft, truck accident, etc., damage them. But, it does not cover individual items.