Do I Need Moving Insurance?

Even during a well planned move done by professional movers sometimes things happen and damage occurs. To protect your belongings you should have moving insurance that will cover some or all of the cost of the damage to your items. But, moving insurance is a little trickier than auto insurance or home insurance. Here’s what you need to know about moving insurance:

There Are Two Kinds Of Moving Insurance

Moving insurance isn’t actually called moving insurance. That’s because moving insurance is offered through a moving company and moving companies aren’t licensed to sell insurance in the traditional sense. But they do offer two different types of protection for your belongings. You should check with your homeowners or renter’s insurance company but most of the time homeowners and renter’s policies don’t cover your belongings during moves. That’s why moving companies offer different levels of protection.

Valuation

Valuation is free, no moving company will ever charge you for it. However, in most cases you have to ask to have it added to the contract that you sign if you want it. So when you’re going over the moving contract before you sign it be sure that the contract indicates that you want valuation protection. Valuation is not full coverage. It pays 60 cents per pound of an item. So if your $1000 sectional is damaged beyond repair you would only receive $600 to replace it. Think carefully about your belongings before you decide if this is the right level of coverage for you. If you have a lot of electronics to move it may not be the best coverage. For example, if your $1200 tablet is damaged but only weighs a pound you’d still only receive 60 cents for it. The other coverage option is Full Value Protection.

Full Value Protection

Full value protection is a higher level of coverage for your belongings but you will have to pay more for this coverage and there is usually a deductible of $500-$1000 as well. However the moving company has to cover the full cost of any damaged items if you have this coverage. When you draw up the moving contract you will provide a detailed inventory of your household goods with a value for each item. If those items are damaged or destroyed during the move the moving company will be responsible for paying you the agree upon value of the item.

High Dollar Items

You can and should purchase additional insurance for any high dollar items that have to be moved. Collectible art, jewelry, expensive electronics, computers and tablets, family heirlooms, antiques, even high end designer clothing can be considered high dollar goods that need additional coverage. If at all possible you should take these items with you and keep them with you or put them in a safe deposit box. If you have the movers take them then it’s a very smart idea to get additional insurance that ensures if they are damaged you will get fully compensated for their value.