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Moving Insurance: Why It Matters

Are you embarking on a big move? That can be a local move or a long-distance one . Either way, you’re packing, hiring movers, and so on, which can lead you to consider moving insurance. But is it necessary? And what is it suitable for? Read along to find out.

What Is Moving Insurance?

Because moving jeopardizes the safety of your belongings, this type of insurance covers the losses and damage that occurs to them during moving. In other words, moving insurance helps compensate you for any accidents that damage your household items and personal belongings in the move. It’s also worth noting that moving insurance isn’t only beneficial to individuals. In fact, businesses can hire office movers when they’re moving offices, equipment, or both, shipping inventory, or transporting goods to their customers. In those circumstances, purchasing moving coverage for a business would make a smart move. Moreover, moving insurance can last up to 90 days , which means the coverage can extend to any damages that occur while your belongings are in storage.

Tip: Contact your local consumer affair agency or state moving association if you want to verify local mover regulations and rules.

Types of coverage

What Are the Types of Coverage Offered by Moving Companies?

Naturally, movers are responsible for the items you entrust them with. If you’re moving from a state to another , the federal law requires the moving company to provide two coverage types, and they’re full value protection and released value protection. Also, third-party vendors offer other insurance options.

Full Value Protection

If you have full value protection, your house or apartment movers are fully responsible for any losses or damage to your belongings during shipping.
To elaborate, the movers have to replace the damaged item, replace it with a similar item, repair it, or pay you a cash settlement so that you can repair or replace it yourself. Undoubtedly, that renders this coverage comprehensive but costly.
You should note that the moving company reserves the right to decide whether an item is fixed or replaced with a similar one. For instance, if it has damaged your microwave of 1 year during the move, the company may fix it or replace it with another microwave. That one won’t be new, though; it’ll have been used roughly the same period.
As for the reimbursement, its value relies on the valuation of your belongings. So, the cost is about 1% of the valuation.
Still, full value protection may not cover everything . For example, moving companies can legally limit their liability for damages, making it so that they aren’t liable for expensive items worth over $100 per pound. Accordingly, that may be the case for jewelry, electronics, and collectibles.

Tip: Ask for your moving company’s specific plan to learn the details and evaluate how it calculates the replacement value. That’ll be especially helpful with highly valuable items. Also, take note of what actions aren’t covered.

Released Value Protection

This is the most basic insurance type. It’s mandatory under federal law, and it’s free. However, where full value protection is comprehensive, released value protection is limited. So, you’ll be compensated for up to 60 cents per pound for each item.
And that coverage is over everything from paper clips to family heirlooms. You’ll find the exact coverage details in the moving company’s quote . Still, 60 cents will hardly be enough to replace or even fix your belongings.
Moreover, a moving company must offer you released-value restitution for any damages. And the minimum rate per pound per item is $0.30 for intra-state or local movers. Otherwise, interstate moves have a higher minimum rate, that being $0.60 per pound per item.

Separate Liability Coverage

A third-party insurance firm offers this type of coverage, meaning that you can pay your moving company an additional fee to receive it.
If the 60 cents per pound of the released value protection coverage is insufficient, the separate liability coverage covers the rest of the damage cost. This way, the two can work hand in hand, giving you full coverage.

Tip: With separate liability insurance, understand the cost of your coverage and the insurance amount, and ask for a copy of your policy.

What Isn’t Included in Insurance Policies?

If you’d rather settle for the free, basic insurance, here’s what you need to know. Your homeowners policy probably won’t cover your property during the moving process, or it’ll offer you limited coverage. Accordingly, consulting your insurance agent or reviewing your policy can be insightful.

Still, you can expect that your insurance won’t be held liable in case of:

  • Damage due to natural disasters, such as hurricanes, tornadoes, fires, hurricanes, hail, and windstorms.
  • Failure to inform movers of any valuable items.
  • Packing hazardous, dangerous, or perishable materials.
  • Packing some personal belongings on your own to save money, especially if the company submits a claim that improper packing was the cause of the damage.
  • No visible damage to the box containing the items.

As for claims, what happens is that you file a claim of damage or loss for your personal belongings, but you must provide proof that you hadn’t damaged your belongings before moving.
In other words, you should confirm that the damage or loss happened during the moving process. To do that, a comprehensive inventory list can support your claim; it should list highly valuable items, including digital devices, jewelry, and silverware.
Moreover, we suggest you take before and after pictures. It’s also a good idea to file your claim as soon as possible. All of these aspects contribute to the approval of your claim and the reimbursement that follows.

Insurance Policies

What Are the Types of Coverage Offered if You Move Yourself?

It’s possible to get insurance over your possession that you’ve packed and transported by yourself in a truck, vehicle, or rental car. After all, the renters or homeowners insurance policy does exist, but it’s limited.

Rental Truck Moving Coverage

A rental company might provide you with insurance if you rent one of its trucks. Moreover, that insurance will cover you, any other passengers, the cargo, and the truck. That means it’s a much safer option than transporting your belongings in your van.
With this type of insurance, you receive cargo protection, damage waiver in case the truck was damaged in an accident, towering devices insurance, and medical insurance and life insurance for you and other passengers in the truck cab.

Trip Transit or Relocation Insurance

This is comparable to the separate liability policy. To illustrate, you become responsible for damages and losses that your policy doesn’t cover when you conduct the move without a moving company. But relocation insurance accounts for that, leaving your possessions with full coverage.
As for the coverage, examples of third-party moving insurance policies are natural disasters, mildew and mold, high-value items, electrical and mechanical accidents, and damages to sets or pairs.

Tip: You may have to purchase extra coverage for high-value items or belongings in storage .

Is Moving Insurance Expensive?

That depends on several factors, including the total value of your possessions, the deductible you’ve chosen, whether you or the moving company has done the packing , and more.
To exemplify, if you opt for basic coverage, such as the released value protection, you’ll pay nothing. However, the full value protection moving insurance will cost you about 1% of the total estimate of your personal belongings’ value.
Otherwise, if you choose a third-party insurance company, the cost for that might vary between 1% and 5% of your valuation estimate. So, with that in mind, you might have to invest $180 to $900 to purchase sufficient coverage.
It’s likely for moving insurance to cost as much as a moving company’s full-value protection. In that case, we’d urge you to opt for moving insurance companies, as they typically offer more comprehensive coverage.

California Movers' Insurance

Is Moving Insurance Necessary?

The question of the necessity of moving insurance depends on your personal circumstances. So, it would be best if you considered how far you’re moving, how delicate and valuable your possessions are, and the weather conditions in your current location and your new one.
Of course, you can never predict the mishaps and mayhem that’ll take place with apartment movers and packers.
Not to mention, car accidents in California are usually expensive, and so are medical expenses. Accordingly, we recommend commercial auto coverage of no less than $1,000,000 .
If all of the previously mentioned factors increase the likelihood of damages and loss, we’d recommend purchasing extra moving insurance. That’s especially beneficial because the homeowners or renters insurance doesn’t offer you full coverage.
By any means, moving can be incredibly stressful, and if moving insurance can help relieve some of that stress, so be it!

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