Moving Insurance – Is it Worth Purchasing for Long Distance Relocations?
Moving is a complicated, time-consuming process, and often, something goes wrong. This is even truer if your move is taking you out of state or across the country rather than just across town. For many people, a bigger move is easier when you hire a moving company to handle the actual move for you. When you’re trying to hire someone, however, you may feel confused about insurance. Do you need it? Where do you get it? Is it worth it?
1. What does the moving company offer?
The moving company is not required to provide moving insurance. The moving company is required to offer what’s called valuation. This is a basic limited liability that you’ll get automatically when you sign the Bill of Lading. It is free, but it is highly unlikely that it will match the worth of your possessions if they’re damaged, ruined, destroyed or lost during the move. Most moving companies pay valuation at a rate of between $.30 and $.60 per pound per item. This means, for example, your $500 laptop that weighs maybe 5 pounds will only get you, at most, $3.
2. Other insurance options
Moving companies have the option to offer you moving insurance, or to direct you to a third party, such as your insurance agent or a company the moving company recommends, to purchase moving insurance.
The additional insurance offered is usually called Full Value Protection, Full Value Moving Insurance, or Declared Value Protection. You will pay for this out of pocket. With this protection, cheap Charlotte movers say the moving company will pay the full replacement value of every item that is damaged or missing in your shipment. Like most insurance, this usually has a minimum coverage and a deductible, but you can decide those amounts. Valuation is again based on weight.
Some also offer lump sum value which insures your things based on cost instead of weight. You insurance your household for a specific amount.
3. Third party insurance
In rare cases, homeowners insurance will cover a move. Most will cover 10% of the value of your personal property if it’s broken or stolen in transit. You can also ask your insurance agent about “Goods in Transit” insurance to cover the move.
4. Is it worth it?
The ultimate question is whether it’s worth the expense to purchase moving insurance. When moving over a long distance, much could go wrong. Roadway accidents, stolen trucks or trailers, or an improperly packed truck that shifts the contents are all ways your property could be damaged or missing. Unless you can afford to replace even a few of your belongings out of pocket with no problem, it’s likely to be well worth the money you’ll spend to purchase moving insurance.
If nothing else, the purchase will give you peace of mind, knowing that if anything should happen to your things, you won’t be on the hook to replace it all on your own. That peace of mind can be more valuable than anything else.