featured image alt – Guide to moving insurance.
Moving is unpredictable. You never know when something can go wrong out of nowhere. Whether you are hiring movers or having a DIY move, you most definitely need moving insurance. No matter if your move is big or small, long-distance or just down the street, moving insurance can sometimes be a lifesaver. That is why we decided to create this guide to moving insurance to help you better understand how it works and why it is necessary to have it.
What is moving insurance?
Before we start telling you about moving insurance, you need to know what exactly is moving insurance. It is actually not insurance, it’s valuation. But valuation and insurance function in the same way. The moving company you are hiring ensures compensation for your belongings in case something gets damaged, broken or lost. This is considered as a valuation because moving companies aren’t certified to sell insurance. Moving companies also aren’t governed by federal regulations that apply to other types of insurance.
Some insurance companies sell moving insurance. It works in the same way but it is insurance rather than valuation. Insurance is good to have for clearing up misunderstandings after relocation and protecting your belongings.
Types of moving insurance
There are different types of moving insurance that you can buy. Each one covers more than the other.
Total loss cover
This is an insurance that gives you bare minimum coverage and here is how it functions. This insurance is good because it’s cheap yet you do get back a certain amount of money. It is cheap because it is only for when all your things go missing and the chances of that happening are very low. People who move abroad and overseas usually get this type of insurance. You firstly write down all the things you are moving. Then you calculate the total replacement value for all these things. If the container with your things gets lost, the insurers will pay out based on your total replacement value. The only disadvantage is that it only covers loss and not damage. So even if something gets damaged or broken, you won’t get any money out of it.
Selective itemized cover
This insurance provides cover for every item you list in the insurance. In order to get this insurance, you will have to take a lot of time to write everything down, in detail. Some insurance companies and moving companies even ask for photos and receipts. This is because you have to declare a true value of the item you want to insure. The good thing about this insurance is that you get to choose what you want to insure. You can insure any item you want – furniture, artwork, a family heirloom. If some of the things you listed get damaged, broken or lost, you get the amount of money that you listed in the insurance. The only downside is that if anything other gets damaged, you don’t get any money because the item wasn’t listed.
Full itemized replacement cover
This is the type of insurance every mover would suggest getting. For this type of insurance, you will also have to make a list of the belongings you are moving. How does this insurance work? The insurer will charge you a premium based on the total replacement value of the contents that you listed. This means that if you make a claim for $1000 of damaged items the insurer will only pay out $500 maximum. Full itemized replacement gives you a good cover if some of your belongings get damaged or lost during the relocation. And you can be confident that you will receive a satisfactory reimbursement if that happens.
Some insurances even cover the inside damage. For instance, if your TV is good on the outside but once you turn it on it isn’t working. Sometimes if you have things in sets, like expensive china, and just one piece brakes, you will be able to get some money. This type of insurance is very common for an obvious reason. It is very helpful to have it. If you don’t have the money for it, you can always get urgent cash loans.
Lump-sum cover
The most expensive type of moving insurance but it’s worth it and you will see why. For this insurance, you don’t need to provide an itemised inventory, except for items of very high value. This means that you won’t have to waste a lot of time making a list, gathering information and prices which gives you more time to do other things. The insurers decide the value of your consignment. This also means that you are a high priority claimant in the event that you need to make a claim if something goes wrong. This insurance will cover any damage no matter how big the price of it is. This works sort of like full health insurance.
How to choose what type of insurance you need?
You will need to sit down and calculate just how much your belongings are worth. Take into consideration their age and current condition and not how much you paid for it. If you have plenty of old things that aren’t worth very much, it would be irrational to pay for the most expensive insurance. You also need to think about the fact that sometimes it’s much easier and cheaper to just buy a new item that was damaged than to wait to get some money back from the insurance.
No matter which insurance you decide to get, don’t ever think it was a bad idea. Things happen when you least expect them to happen so you getting that insurance might have stopped a bad thing from happening. It is always better to be safe than sorry.