One of the most misunderstood aspects of any move is moving insurance. Does a moving company offer full value protection or should you buy third party insurance? Here is everything you need to know about moving insurance.
Does a moving company offer free moving insurance?
Logically, you might think that a moving company insures every item they move. That’s sort of right. All licensed moving companies (which should be all moving companies) have to offer basic coverage, released value protection, or valuation coverage (just three different names for the same thing), for free. So far so good, right? Well, maybe, until you realize that valuation coverage covers your move for just 60 cents per pound per item. In other words, if a 20 pound Picasso were to jump off the truck, you’d receive $12.00.
Okay, maybe that’s not the best example. Anyone who has a Picasso would want to make sure it was covered with full value protection, right? Also, at Fairprice Movers, we would pack a Picasso so well that it could jump off the truck and into the middle of 880 without a scratch (please don’t try this at home). You probably get the idea, though. 60 cents per pound per item isn’t much, even if you don’t have any Picassos in your home.
Why doesn’t a moving company offer free moving insurance?
A moving company is a bit like the Post Office. When you ship something through the Post Office, they offer a little insurance for free, but not much. For most shipments, if you want to receive the full value should something happen to the package, you have to pay extra.
The primary reason the Post Office and moving companies don’t offer full value protection for free is that there’s no way to know what’s inside a box or the condition of what’s in that box. More to the point, though, neither are insurance companies, and as you probably know, insurance companies have to adhere to strict regulations.
Should you buy full value protection moving insurance?
In most cases, we recommend that customers purchase third party insurance. You can purchase through a company called Baker International. Their premiums start at about a penny on the dollar, depending on the deductible.
Will my homeowners or renters insurance cover my move?
Most of the time homeowners or renters insurance does not cover moves. It’s best to call your insurance company first. You may be able to purchase a rider on your policy that will cover the move.