Importance of Insurance When Selecting Residential Movers

As you’re coordinating logistics for your next relocation, it’s easy for things to slip through the cracks. One aspect that often gets overlooked is moving insurance. It’s easy to assume that your belongings will arrive safely at your new residence, but accidents can and do happen. In this post, we’ll discuss why moving insurance is crucial when selecting residential movers, providing homeowners and renters with peace of mind during their transition.

What Is Moving Insurance?

As its name suggests, moving insurance protects a household’s belongings during a move. It pays out compensation for repairs and replacements for damage or loss that may occur while your items are in transit. Moving insurance specifically addresses the risks of relocating your possessions from one place to another.

Understanding what moving insurance entails can help you make an informed decision when hiring movers. This coverage ensures you’re not left with unexpected expenses if something goes wrong during the move.

How Does It Differ From Other Insurance Types?

Moving insurance coverage is distinct from other insurance types, such as homeowners’ or renters’ insurance. Homeowners insurance typically covers your belongings while they are inside your home. Renters insurance provides similar coverage for personal property within a rental property. However, these policies usually don’t extend to items in transit when handled by professional movers.

Moving insurance fills this gap by focusing on when your belongings are most vulnerable—during the move itself. Unlike general insurance policies, moving insurance is specifically designed to handle the unique risks of transportation and handling.

Types of Moving Insurance

When you hire a residential moving company, they will present you with coverage options so you can choose an amount that best matches the value of your belongings. Federal regulations mandate that moving companies offer full-value and released value protection as liability coverage for their belongings. Consumers can also choose to purchase separate liability coverage from a third-party provider. Let’s dive deeper into what each of these moving insurance types entail along with their advantages and drawbacks.

Full-Value Protection

Full-value protection is the most comprehensive type of moving insurance. It makes the moving company liable for the replacement value of damaged, destroyed, or lost belongings while in their custody. If any of these mishaps were to occur, moving companies are obligated to offer to repair the damaged item, replace it with a similar item, or pay a cash settlement. These settlements can either cover the item’s estimated market value or an approximate cost for a repair.

Pro Tip: Assessing Your Item’s Worth

When opting for full-value protection, it’s essential to inventory your items accurately. This way, the movers can assess the value of your belongings and provide adequate coverage.

Released Value Protection

Released value protection is a more basic form of moving insurance at no additional cost to you. In exchange, this moving insurance’s coverage is minimal compared to full-value protection.

Under this plan, the moving company is liable for up to 60 cents per pound per item. For example, if you own a printer worth $200 that weighs 12 pounds and is damaged during transit, you would receive about $7 as compensation to repair or replace the item.

This type of coverage is suitable for those looking to save on insurance costs, but it carries the risk of inadequate compensation for lost or damaged goods. Customers are also asked to sign a bill of lading to agree to the terms of the released value protection.

Third-Party Insurance

Third-party insurance involves purchasing additional coverage from an outside provider. This option can supplement the coverage offered by the moving company.

It’s particularly useful for those with valuable or fragile items that require extra protection.

If you filed a moving insurance claim to compensate for replacement costs for a lost item, you would receive payment from your insurance provider and from released value protection.

With third-party insurance, you have greater flexibility in choosing the level of coverage that suits your needs. Always ensure that the policy complements the basic coverage provided by your movers.

What Is Not Covered by Moving Insurance?

Although moving insurance can be a valuable asset during relocation, it cannot extend coverage to all types of damages that may occur. Even full-value protection carries exclusions, particularly items whose value exceeds $100 per pound. These are known as “items of extraordinary value” and can include jewelry, antiques, or high-end cameras.

If you fail to inform your moving company that you own high-value items, the company cannot be held liable if they are damaged or destroyed in transit. They can also not be held liable for items inside boxes you’ve packed yourself. Lastly, damage caused outside of the mover’s control, such as natural disasters, is excluded from the mover’s insurance coverage.

How Much Does Moving Insurance Cost?

The cost of moving insurance varies based on the type and level of coverage. Full-value protection is more expensive but offers comprehensive coverage. Released value protection is free but provides minimal compensation. Third-party insurance costs depend on the provider and the value of the insured items.

Generally, the cost is a small percentage of the total value of your belongings. Investing in adequate coverage can save you from significant financial loss in case of mishaps.

Benefits of Moving Insurance

Moving insurance is most beneficial during relocations when you are not willing to risk items being damaged, destroyed, or lost. It’s a cost-effective way to safeguard your most valuable belongings. It offers peace of mind and improves your moving experience by alleviating a significant source of stress. When you’re ready to hire a moving company, discuss their moving insurance coverage and price to determine whether you’re getting a good deal.

In conclusion, moving insurance is an essential consideration when selecting residential movers. It protects your belongings, reduces financial risk, and provides peace of mind. Whether you’re a homeowner or a renter, understanding the types of coverage available and their benefits will help you make an informed decision.

Leave your valuable belongings in the hands of trusted residential movers in Houston with the JT Melia Moving team. We boast over 50 years of experience helping families like yours protect their items throughout the relocation process. Call us today to schedule an in-person moving quote.