Moving insurance helps to protect your belongings when relocating. When hiring a major moving company, you will need insurance coverage. However, you might need additional coverage depending on what you want to move, as well as how far you want to move.
If you’ve never moved before, it’s good to understand that there are different types of moving insurance. That means some companies will not charge you for this, while others might need you to pay an extra fee for your moving insurance.
Types of moving insurance
The federal law in the United States requires movers to provide insurance coverage options for their clients. And why most moving companies have their insurance policies, they all fall into three basic categories. Let’s discuss each of these categories in detail.
Basic carrier insurance
This type of insurance has no additional cost. The mover provides this policy as a part of the agreement with the Federal Motor Carrier Safety Administration under which they operate.
The federal law requires basic carrier liability coverage, which means that if your belongings are damaged or lost while being moved, you can file a claim against the movers and receive compensation for those items. In most cases, moving companies do not release any information about what happened to your belongings until you file a claim. So, filing an immediate claim is mandatory to avoid later claims that might be denied due to missing evidence.
Declared value protection
Declared value protection is needed if you want to have your items insured. This type of insurance is available with additional fees, usually around 2-3% of the declared value.
Declared value protects you only up to a certain amount specified by your policy. The item must be covered under an actual cash value basis. If it’s damaged or lost, the settlement will be based on how much it would cost to replace that item new at that time, not its original price.
Full replacement coverage
This type of insurance provides restoration costs instead of just replacement costs for your belongings if something goes wrong during transit. You should expect to pay 5-7% extra on top of the total moving costs for using this option.
If your belongings are lost or damaged, then the mover will replace them as if they were new, and it would cost you as much as the original price (or more). This way, you won’t need to pay for full reconstruction costs of any furniture that has been broken into pieces or damaged severely.
The downside of having such insurance is that there might be a deductible fee on top of your total claim amount. If this happens, make sure to read the fine print and understand all conditions and fees before signing anything!
Why is moving insurance important?
To protect your belongings
If you are moving a long distance, it’s a good idea to take advantage of movers’ insurance. You can also purchase additional coverage from other companies if needed.
The main reason to get moving insurance is for protection when you are transporting costly items. Make sure to add up all costs and compare them against how much money you would save if you skipped buying the insurance policy after getting a quote from different movers in your area.
To save on unexpected bills
The experts from Torex Moving say that moving accidents happen more often than we think they do. One example could be a careless mover who accidentally drops a box full of glass items and damages some of them. Even though basic insurance might not cover this, you could still file a claim. And if your belongings were severely damaged, then the mover would need to replace them according to the actual cash value of each item.
Every time something is lost or broken during transport, you should always take photos and document what was going on at that moment. This way, you will have evidence for filing a claim. If you don’t have this kind of documentation, then movers might deny your claims because they consider those items missing without a trace even though it wasn’t really like that.
In most cases, movers are not liable for loss or damage unless it happened due to their negligence or intentional actions outside of their control (for example, if they were working with a sub-contractor). For example, vans are not meant to move construction equipment or fragile items requiring special care.
To avoid disputes
You should never pay the moving company until all your belongings arrive in one piece at their destination. If you don’t have insurance, they might put a lien on your property and hire a legal team to go after you for costly compensation.
If there is no evidence of damages or loss, it will be hard or even impossible to claim additional money from your mover without having reliable proof that something was going wrong during transportation.
In some cases, movers may end up denying damage claims for certain items if not enough evidence can be provided about what happened with those items while being transported from A to B. In this case, your warranty documents won’t do much good because movers need real proof that shows how an item was damaged or lost.
We hope you found this blog post All You Should Know About Moving Insurance useful. Be sure to check out our post Hiring a Reliable Moving Company – 8 Things You Should Consider! for more great tips!
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