Deposits. Flights. Purchases for the new home. Moving can involve a lot of additional expenses. So you may be asking yourself, is moving insurance worth it? And what’s the extent of moving insurance coverage?
Whether you’re moving locally, long distance or internationally, moving insurance can be a sensible choice.
HOW MOVING INSURANCE WORKS
Moving insurance is also sometimes called “valuation”. As with other types of insurance, you can choose different coverage levels according to what you want.
RELEASED VALUE PROTECTION
Looking to save money when you move? There’s a minimal coverage option called released value protection. It won’t even cost you anything. So how does it work?
You may be surprised to learn that the coverage is based on the weight of your items. Yes, you read that correctly. Not the value of your items. Per pound, your claim would get you around 60 cents.
So if you have lightweight, expensive items, you won’t get anywhere near the full value.
FULL VALUE PROTECTION
How moving insurance works in terms of full value protection is similar to how other types of insurance work.
You have to pay a premium in advance, and then when you claim there will be a deductible. You’ll have to say what your belongings are worth, again, per pound. Then your premium is calculated according to the value of your belongings.
Say you have full value protection and there’s a breakage. Then the moving company will repair your item, replace it, or give you a cash payout. Full value protection is the most typical way people choose to move, assuming you don’t have incredibly expensive items.
HOW ABOUT INSURING PRICELESS ART AND ANTIQUE PIANOS?
Is moving insurance worth it? Even more so, if you have very expensive items.
In the trade we call these “items of extraordinary value”. You can get additional coverage for these types of items.
Of course, you will have to pay an increased premium. But if you know in your heart you’d be devastated to lose a particular item, additional coverage is the obvious choice.
AREN’T I COVERED ANYWAY?
Most homeowners and renters insurance policies cover your possessions. But not during the moving process. Why?
If you chose the wrong moving company, your belongings would be at more risk of damage. Plus, you would be at more risk than usual of being the victim of theft. So insurance companies won’t pay out unless you have dedicated moving insurance.
WHY BUY MOVING INSURANCE
Mortgages, real estate agents, and moving can be expensive enough anyway. So why buy moving insurance? Here are some good reasons why you should take out a policy.
YOU HAVE A LOT OF FRAGILE, VALUABLE ITEMS.
Do you have art? A piano? Perhaps a musical instrument? Moving insurance would be a good investment if you have belongings that are expensive or have emotional value.
PLAN YOUR HOUSEHOLD BUDGET
Moving can leave a dent in your budget. It’s even worse if something goes wrong unexpectedly. When you’re moving long distance, internationally, or with a lot of possessions, there’s more opportunity for emergencies.
But when you take out moving insurance, you’ll be able to forecast your expenses precisely.
PROTECT YOUR EMOTIONAL WELLBEING
Consider this. In 2020, Americans were asked to vote on the most stressful life event there was. The options included divorce, having kids and starting a new job. And guess what? People voted moving as the number one most stressful.
It doesn’t have to be this way. A great moving company plus moving insurance is your recipe for a stress-free move.
WHAT MOVING INSURANCE DOESN’T COVER
Insurance companies really don’t like it if you do your own packing and unpacking. Normally they consider that a non-professional mover is likely to break or damage their possessions.
And it’s true, we’ve seen it happen more times than we’d care to remember. This means that if you do your own packing, it will be hard if not impossible to make a claim.
So when you get moving insurance, be sure to book a packing and unpacking service with it.
HOW MUCH DOES MOVING INSURANCE COST?
It depends on your policy. As we mentioned earlier, released value protection is included in your moving fees. But the payout is very low.
Say you have some valuable items like TVs and good quality furniture. You’re considering the full coverage option. Then it will cost an average of 1-2% of the total value of your possessions.
And for total peace of mind? How much does moving insurance cost for an extremely comprehensive policy? About 5% of the total value of your possessions.
You can read more about coverage options for moving here.
WHO OFFERS MOVING INSURANCE?
General insurance companies, not the moving companies themselves. This is important. Moving companies are not licensed to sell their own moving insurance.
We have been in the moving game for more than 20 years. That’s a lot of moves with a lot of breakables. So we’re keen to help you choose insurance companies and insurance policies wisely. Our team will be glad to advise you on which insurance provider and policy would suit you.
INSURANCE FOR MOVING COMPANIES
You’re not the only one that should be insured, your movers should be too. That’s why Air1 Moving & Storage is itself insured, for your peace of mind.
You should never risk your possessions with an uninsured moving company. Anything could go wrong, and you’d have no way of getting compensation.
IS MOVING INSURANCE WORTH IT? SPEAK TO OUR TEAM!
Air1 Moving & Storage is Los Angeles’ leading moving company, so we can walk you through the moving insurance policies that would suit your needs.
The best way to keep your belongings in one piece during a move is to hire a great moving and storage company. Our friendly team is waiting for your call at (866) 552-2916. Alternatively, send us a message using our contact form, or email us at [email protected].