From looking for a new place and packing to hiring an international moving company, there are plenty of things you need to consider when planning a relocation. During this process, have you ever stopped to think about getting moving insurance?
Many people are unaware of this type of insurance, probably because it sometimes comes with a different name. In some cases, people choose to shrug it off since they don’t think they would need it.
Here, we will answer five of the most important and frequently asked questions about moving insurance to help you decide whether to get one for your move abroad.
1. What is moving insurance?
Before learning the details about moving insurance, we must first clarify that this is not an actual “insurance.” Rather, it is a type of protection offered by removalists to their clients.
Called by movers as “valuation,” this has a similar function to that of traditional insurance. Basically, it ensures compensation to safeguard your belongings in case of loss or damage during the move.
Note that moving companies don’t sell insurance because they are not certified and governed by federal laws that cover insurance providers. Even so, valuation functions much like an insurance does by providing you with peace of mind on your move.
With that said, we’ll be using the word “insurance” in this article since it is the better known term for valuation.
2. Should you get moving insurance?
The purpose of moving insurance is to help you rest easy during the transport of your belongings during the move.
So, while it’s all up to you, we strongly recommend that you get moving insurance. It’s a small price to pay for the protection of your belongings.
Keep in mind that there is an available basic coverage that comes with most moving services. However, many people still opt for full valuation protection (to be explained later) because of the expanded benefit and coverage.
For example, if you’re moving overseas, you might want to get shipping insurance coverage to protect your belongings during transport from your origin to your destination country. This way, you can rest assured that your belongings are taken care of.
3. What are the types of moving insurance?
All moving companies are required by federal regulations to offer two types of coverage to customers on out-of-state moves.
One of these basic coverage offerings entails the reimbursement of the valuation of items set at a per-pound basis.
The first one, called the “released value protection,” is typically included in the moving company quote and is deemed as the best solution for people looking to save while moving with just a few high-value items within a short distance.
Important: The released value protection coverage becomes void in DIY packing since it automatically means that you assume responsibility for the item.
Generally, this type of moving insurance pays 60 cents for every pound of items lost during transit, regardless of what it is. For example, you will be reimbursed $21 for a television set that weighs 35 pounds when it is lost or damaged.
Considering the amount of reimbursement, you may be wondering why you’re paying others for the move if you’ll only get such a small amount if they don’t do their job well. This is where the full-value protection comes into play.
This second coverage takes your valuation of the goods to be transported into account. Under this moving insurance package, you’ll pay 1 per cent of the value you set for the entire package.
This means that if you decide that everything you want to be shipped is worth $50,000, you’ll be required to pay $500 to get full-value protection or “full replacement value.” This will give the moving company two options in case of lost or damaged property: to have the item repaired or replaced with a similar item.
For example, if a two-year-old washing machine gets smashed during transit, the movers can either have it fixed (if that’s possible) or replaced with another washing machine with the same fair market value.
This value protection coverage is best for groups or families on a cross-country or overseas move.
Of course, there’s another option available, depending on your risk tolerance. Writer Relocations, for example, offers shipping insurance that serves as the safety net for your belongings while they’re in transit.
4. Does homeowner’s insurance cover moving?
Homeowner’s, renter’s, or condo insurance may not cover your move, but this depends on the details stated in your policy. To be sure, it would be best to check with your insurance provider to know exactly what is covered. This is better than assuming that they cover your relocation, only to end up with no protection at all.
5. What isn’t covered by the moving company?
There are certain limitations to the scope of coverage movers can provide in a moving insurance.
In essence, movers don’t take responsibility for things that they aren’t directly involved in. Some of these things are:
- items that they didn’t pack;
- damage caused by natural disasters; and
- damage in storage that isn’t related in any way to the moving company.
Pro Tip: To be sure you get the most out of the moving insurance, have the movers pack everything you want to be covered by valuation.
Ready to Move?
Moving overseas entails plenty of risks and uncertainties. Keep your peace of mind intact by understanding the details of your moving insurance.
Have more questions? Send us a message. Writer Relocations is always ready to help.