What is Moving Insurance and Its Importance?
Vaidehi Desai is co-founder of www.traderguide.in, a Technical Analysis Software for Stock Market, a venture of Sthapati Infotech Pvt. Ltd. She is a Senior Manager at SDCPL – Gharpedia. She has earned MBA from Auro University, Surat in 2013 & Post Graduate Diploma in Human Resource Management from Symbiosis Distance Learning, Pune. She brings with her years’ experience in Personal banking with HDFC Bank. Her passion for music made her take a Degree in the subject. She looks after the Buy-Sell- Rent & Finance & Legal sections of Gharpedia. You can reach her at LinkedIn, Facebook, Twitter & Instagram.
For many, moving to another place can be considered as an opportunity for growth or having the ability to start something new. If you have been living in the same city for decades and noticed that your career hasn’t improved, moving to a bigger city can be an excellent course of action. A new location can offer opportunities or benefits that aren’t existent in your current place of residence.
Although rewarding and exciting, moving also requires a lot of preparation whole you need to undergoes certain pain. You have to compare different moving companies and movers to check which among these best fit your needs and budget. But even if you hired professionals in moving all of your valuables, accidents, theft, and natural disasters can still happen. These situations can result in damaged or lost valuables – this is the reason why you need to pay for moving insurance before moving.
What is Moving Insurance?
Simply stated, moving insurance is designed to protect all of your valuables while being in transit to your new location. Regardless if you’re planning to pay for professional moving trucks or temporary storage, moving insurance guarantees that your valuables are protected.
Moving insurance can offer coverage for in-state, out of state and international moves. Regardless if you’re planning to move by land, air or water, acquiring moving insurance can give you peace of mind that your valuables will stay in tiptop condition.
Several companies now offer moving insurance online. When you choose to avail of their service, you’ll only have to fill out a form online, and you’re good to go!
Why is Moving Insurance Important?
The main purpose of moving insurance is to protect your valuables throughout the entire move. Hiring a professional moving company might make it easy to transport all of your valuables, but their services don’t warrant the safety and protection of your valuables.
When signing a contract for moving insurance, pay attention to the valuation coverage. This is the amount of liability the moving company is expected to pay to you if any of your valuables get damaged or lost during the move.
Types of Moving Insurance
There are several types of moving insurance, and each of these has different coverage:
01. Complete Value Protection
Under this valuation, any damages and losses are covered by insurance, and you will receive payment for any repairs or replacements of lost or damaged valuables. This valuation ensures that you will be properly compensated the moment any of your valuables get lost or damaged during the move.
However, not everyone is in favor of complete value protection because this coverage is subject to minimum coverage deductibles and amounts. The compensation you’ll receive for a damaged or lost item will be lesser than its actual value. This means that if your designer lamp worth $100 was lost during the move, you’d only get around $50 to $75 as your coverage.
Also Read: General Principles for Valuation of Building
02. Assess Value Protection
If you’re planning to transport lightweight but valuable items, this is the perfect coverage for your upcoming move. Under this valuation, compensation received for any damaged or lost items is based on its value, not on its weight. Pieces of jewelry should be protected under this coverage.
More often than not, you can purchase coverage for a specific amount per $1,000 of value. However, all of this information should be stated in a bill of lading and acknowledged by the moving company you’re going to hire.
Also Read: Various Methods of Valuations of Property
03. Declared Value Protection Based on Weight
This protection is computed based on the total weight of your items and multiply the number by a specific amount per round. If you’re planning to bring an item that weighs 2,000 pounds, and the specific amount per round is only at $0.60, the moving company will only pay a maximum of $1,200 even if that item costs more.
With these numbers, you’ll likely receive $15 once a flat-screen TV is damaged during the move.
In final note, moving insurance is vital, but with the number of businesses offering this coverage, it’s best if you take the time to scout and compare your options. The cheapest moving insurance doesn’t always warrant the best coverage.
Once you’ve decided to move, work on finding the best moving insurance. It’ll be easier for you to look for options if you are not pressed for time.