It would be wise for young professionals planning to move in the near future, and renters, in general, to invest in some form of renter’s or moving insurance. Accidents happen and damages do occur, and investing in a strong insurance policy can save people some future frustration. Whether for an interstate move, or a long-distance relocation overseas, ensure that your items are protected before they set off.
This article will offer some tips on moving insurance, relocating, and spending insurance dollars in the smartest way possible.
Moving insurance provides protection against damages when relocating from one residence to another. Moving insurance coverage is often used to supplement the coverage provided by a moving company, or to provide protection to a person who plans to move her or his own belongings.
Most moving insurance policies can be purchased for a total coverage timeline of up to 90 days, which in many cases will cover the transitional period of a move.For example, if a person is shuttling belongings to-and-from a storage unit for a few weeks or months following a move, a good moving insurance policy would protect against damages during the transitional period.
In general, moving insurance policies are broken down into three tiers:
If a person hires a moving company to help with their relocation, he or she should know that all moving companies are federally required to offer two distinct types of coverage to customers moving out-of-state.
This is moving insurance offered by moving companies, with moving companies providing reimbursement at a fixed rate of $0.60 per pound. This sounds reasonable unless a moving company drops a crate full of antique china.
If one were to stop and think about it, he or she would realize that almost all of their belongings are worth more than sixty-cents-per-pound, and realize that this form of coverage is woefully insufficient.
Once a person recognizes what a poor value released value protection can be, he or she is likely to consider full value protection. More sensibly, this coverage entails strict valuations on all of the items being moved, with the cost of the policy being about 1% of the total valuation.
If a person has a collection of rare books with a valuation of $60,000, then the person could purchase full value protection against damages for roughly $600. While a person would think that this type of investment would offer bulletproof protection, that’s still not always the case.
In the event of damages, full value protection gives the moving company two alternatives: the moving company can pay to have the item repaired, or it can replace the item with a market comparable.
This is immediately vexing because the consumer who purchased the full value protection has no say in the matter. Other potential problems arise no matter which way a moving company attempts to proceed with a full value protection claim on the relocation insurance policy.
For instance, if the move damages a person’s favorite reclining chair, the moving company could attempt to fix the reclining mechanism themselves or hire a company that can. There’s no guarantee that the moving or restoration company can bring back the chair to its previous working condition, and this could lead to an ongoing dispute with the moving company.
If the moving company opts for a full value replacement and the chair in question has an appraisal value of $40, the person with the full value protection will get an alternate, likely a second-hand $40 chair for their trouble. In either event, it’s not a favorable position for the person taking out the policy.
If you’re buying full value coverage, there’s one more caveat. Moving companies do not need to reimburse customers for items valued at more than $100 per pound – likely meaning a person’s most valuable possessions, unless they explicitly listed the items on the shipping documents.
In any event, a person planning a large move or relocation should do a careful inventory of their belongings. This is doubly important if a person opts to work with a moving company. Remember, of course, to clearly list anything of importance on the shipping documents.
Unfortunately, what many people who are relocating for work find is that itemizing every belonging in their possession is impossibly time-consuming.
This is where many people fall into a trap. With no time to itemize everything and failing to purchase moving insurance, people have to simply hope that movers don’t break anything valuable or irreplaceable.
Below are several strategies people can adopt in advance of a large move.
In most cases, an insurance agent will do exactly as a customer asks – nothing more, nothing less. As such, it’s the responsibility of the customer to review any insurance policy and to determine which scenarios the policy will cover.
A thorough call with an insurance agent will take care of most issues and might help ferret out any coverage gaps that could cause problems. A good insurance agent may even be able to recommend coverage that aligns best with a person’s moving timeline.
When moving between countries, be sure to value your items based on what they are worth on the market at your destination. This is done so that you will be rightfully compensated for a damaged or lost item with funds that will allow you to replace it in your new country. Additionally, when itemizing your pieces, start with the most valuable at the top of your list and work down to the smaller items (which may not be worth taking out a policy for).
Moving companies provide insurance that doesn’t cover a number of fairly likely scenarios, including damage resulting from “natural disaster,” damage while items are in storage, and damage to items not specifically packed by the movers.
It’s important for people to know which circumstances moving companies don’t cover, and to seek third-party coverage if warranted.
Both homeowners insurance and renters insurance likely include some form of moving insurance. Unfortunately, this is likely window-dressing. These two alternative policies offer protection that may have sizable gaps or other failings that reduce their worth.
For example, many homeowners’ policies explicitly protect a person’s belonging when they are in a home. If the damage happens while the items are in a moving truck or in storage – or worse, if the damage takes place in the person’s home and proving otherwise is difficult – then the insurance policy may be reluctant to pay for damages.
This is another instance when a proactive conversation with an insurance agent is in order. People planning to move need to know exactly what their current policies cover, and what the payout will be on certain belongings in the event of significant damage.
It is shocking for many people to learn that most policies only cover 10% of their possessions when the items are not in the house itself. It’s critical for people planning to move to know the ins and outs of their policy and to add additional coverage if practical.
People can also purchase total loss coverage. This type of coverage will replace all belongings in the event of a catastrophe or natural disaster, including fire, flooding, theft, and so on. The catch here is that the coverage only pays out if catastrophe is the cause of lost property or belongings. If only a portion of a home or residence sustains damage, then the policy may not pay out.
To alarm people preparing to move is not the purpose of this information. People just need to make themselves aware of the various coverage plans and moving insurance options available, so that they can protect themselves against damages and losses.
People who don’t want to deal with some of the complications and risks of moving should consider renting an apartment from Blueground. Their furnished apartments provide a host of amenities and almost everything a person will need for modern living. That means you can move into one of their homes with just a suitcase — which can be covered by a lost luggage policy if you’re interested in being insured. A fully equipped home with tailormade furniture, linens, tableware and utilities up and running will be waiting for you on the other end. For permanently relocated professionals and temps, they can forego hassles related to large moves like itemization and taking out a moving insurance policy.