When thinking of relocation, there are a lot of questions on your mind. It is a tough process, especially if you are moving long distances. It is not only tough but it is also a very long process. You have so many things to think about. Sadly, that is why a lot of people forget to get moving insurance or they simply want to save some money so they decide not to have moving insurance for their move. We can tell you right away that this is a huge mistake. Moving insurance can actually save you a lot of money. Sometimes, the damage that accidentally happens costs more than the insurance itself. We decided to tell you five things that you should know about moving insurance and hopefully these things will change your mind if you were thinking about skipping this moving expense.
What is moving insurance?
Before we tell you what you need to know about moving insurance, we need to tell you what it really is as not a lot of people know. Well, moving insurance isn’t actually insurance. The moving company of your choice will most likely offer you something that is called valuation. And what is valuation? Valuation is like insurance. Your moving company will ensure compensation for your belongings in case some of them are damaged or lost.
This isn’t very likely to happen when you are moving with a reliable moving company but you can never be too safe when it comes to moving and especially if you are having a long-distance move. But have in mind that it is always important to know how to spot the best moving companies before choosing one.
There are different types of moving insurance
The second thing you need to know about moving insurance is that there are usually a few different types of moving insurance. Most moving companies that offer moving insurance offer these two types:
- Released value protection
- Full value protection.
Let’s talk about released value protection first as this is the most basic coverage option that moving companies offer. A fun fact about this insurance is that you won’t be charged for released value protection. But you do have to ask for it. But this type of moving insurance provides only minimal coverage. Usually, moving companies will calculate your damage only 60 cents per pound per article. This definitely isn’t enough. If you are moving kitchen appliances that weigh 50 pounds, this means that you are only going to receive $30 if it gets damaged. And this is not enough to cover the fixing expenses and not enough to get you new ones. Even if something gets lost during the move, which isn’t going to happen but let’s just imagine, you’ll also receive only $30 for 5 pounds worth of things.
But full value protection moving insurance is different but it costs money. You will get a full replacement value of the goods that are transported if they get damaged or lost. How does this type of moving insurance work? Well, you are the one setting the worth of your goods per pound. When you do that, you have to pay a premium for that amount of coverage. This is usually estimated between $4 or $6 per pound on your household items.
There is no moving insurance for “special items”
If you don’t know what special items are, we are here to tell you more about them. Special items are items that not a lot of people own and that cost a lot of money. For example, if you have a $1,500 pair of shoes, they can’t be fully covered with the moving insurance if something happens to them. This also goes for musical instruments, pool tables, antiques, paintings, etc. Any items that cost a lot of money and that you would value at more than $100 per pound, you will either have to move them without insurance or pay a special type of insurance for these items. This is why you must talk openly with your moving company and inform them about such items so you avoid any complications and misunderstandings.
You will have to file an insurance claim if something happens
If by any chance something bad happens to something that you own during relocation with a moving company, you will have to file an insurance claim. You have to do this correctly if you want to receive money for the items. Have in mind that it is most likely going to be a long process that is going to involve a lot of paperwork. If that is something you don’t want to deal with, you won’t be able to get any amount of money back.
Your claim can be rejected
Sadly, if you don’t do the paperwork the right way, your claim can actually be rejected. The reasons could be numerous. One of them could also be that the damage or loss doesn’t meet the terms of the policy. This is why it is important to talk openly with your movers because not doing this can lead to unnecessary complications such as this one. Read some of the questions you need to ask your movers before relocation. Your next step if this happens is to contact the insurance company and explain why you believe the decision is incorrect or unfair. If nothing helps and you still believe that the company is in the wrong, you can file a lawsuit with the help of an attorney.