No one wants to think about their most precious belongings getting damaged during their move. But the reality is that things break and get lost and it’s important to plan for that possibility when you relocate. Although some homeowner’s and renter’s insurance policies provide some degree of coverage for moving, most don’t, and that’s why moving company insurance exists.
Read on to learn why it’s in your best interest to cover your possessions when you move, what types of insurance are available to you, what they cover, and how they work.
Moving Company Insurance: What It Is & What It Isn’t
Technically, moving insurance provided by a moving company isn’t insurance at all because professional movers aren’t authorized to sell actual insurance. So what is it? It’s actually something called valuation coverage, which means the moving company takes on a certain amount of monetary liability for your belongings if they suffer damage in transit.
Typically, valuation coverage is less comprehensive and pays out less than what an actual insurance policy would. Basically, valuation simply refers to how much a moving company will reimburse you for an item that gets lost or damaged during your move.
What Types of Moving Insurance Are Available?
Moving companies can offer different types of valuation coverage, but the two most common are called released value protection and full value protection. Third-party coverage is also available. Here’s how they work:
Released Value Protection
This type of coverage comes standard with every professional intrastate and interstate move. It’s the most basic type of coverage available and currently, it reimburses $0.60 per pound per article. That means that no matter how much an item is worth, the moving company will only reimburse you a set amount of money per pound of the item’s weight.
For example, if you own a 30-pound television that breaks in transit, the company will only reimburse you $18.
Full Value Protection
This type of valuation coverage requires an upfront fee and that’s because it provides more comprehensive coverage than released value protection. However, even full value protection (FVP) isn’t as comprehensive as actual insurance.
When you have FVP and something breaks during your move, the moving company will do one of three things:
● repair the item,
● replace the item with a similar item of comparable value, or
● pay you a cash settlement that’s equal to the item’s current market value.
Some companies may instead choose to valuate items by weight with FVP. A common valuation is around $6 per pound, which means that if your entire truckload weighs 4,000 pounds, you’ll be eligible for up to $24,000 in reimbursement.
Third-Party Moving Insurance
In addition to released value protection and full value protection, you can also opt to purchase third-party insurance for extra coverage. If you’re moving very valuable items, it’s a good idea to add this on since it’ll reimburse you over and above what a moving company’s valuation will pay out. Anyone who’s moving expensive artwork, jewelry, or antiques should seriously consider purchasing this coverage in addition to FVP from the moving company.
What Does Moving Insurance Cover?
Valuation from a moving company only provides coverage for item damage or loss that occurred due to an event that was within the movers’ control. Here are some examples of why a moving company may choose to limit their liability for your belongings:
● You failed to notify the moving company in writing that certain items were worth more than $100 per pound. These types of items are referred to as items of extraordinary value, and movers aren’t liable for reimbursing you for damages to them unless you specify their value in writing.
● You packed your own things and something was damaged due to improper packing technique.
● You failed to report item loss or damage within the moving company’s allotted time frame. Usually, you have around six to nine months.
● Damage to your belongings was caused by non-allowable items that you personally packed — fire hazards, dangerous chemicals, etc. — and didn’t let the movers know about. There are many things moving companies can’t or won’t move, and you can check out the full list here.
So — Do You Need Moving Insurance?
Honestly, whether you should opt to pay extra for moving coverage or insurance really depends on the value of your belongings and when you plan to move. If you’re moving long distance during winter when roads are hazardous, it might make sense to go for insurance just in case anything unexpected happens. However, if you’re moving locally and your biggest worry is a mover damaging your favorite decorative mirror, you’re probably better off sticking with a basic valuation option.
Get a Minneapolis Moving Services Quote from Ace Moving & Warehousing
Need help with your upcoming move? Get in touch with our team at Ace Moving & Warehousing! We’ve been helping Minnesotans move since 1958, and our expertise in the industry is unmatched in the Twin Cities area. We offer full packing and moving services, storage solutions, custom move planning, and much more, so reach out today to find out how we can help you! Call our office at 763-755-2045 or request a quote online to get started.