Whether you're moving to another state for a new job or better weather, or moving locally for a more suitable house or neighborhood, moving can be stressful and expensive. When planning a move, most people have a lot on their minds and may forget to consider whether they need moving insurance or if their homeowners insurance policy covers any potential mishaps that can arise, such as damage to their personal property.
Fortunately, an independent insurance agent can advise on whether your homeowners insurance is enough or if you need separate moving coverage insurance. But first, we're here to help answer some of your most common questions about moving and insurance to clear up some of this confusion right away.
What Is Moving Insurance?
Moving from one home to another involves navigating many challenges, and one of them is the concern for the safe transport of your belongings. You can pack them as carefully as possible, but if you hire a moving service, the care of your belongings is out of your hands.
Moving insurance provides protection against damage to your personal belongings and household items during a move to a new residence. This insurance coverage can supplement the moving company's insurance coverage or be used to protect your belongings when you handle the move yourself.
You can often purchase a moving insurance policy for a period of up to 90 days so that your belongings may be covered while in storage, if necessary, during your transition.
Does Homeowners Insurance Cover Moving?
Many people think that if their property is lost or damaged during a move, they're automatically covered by their homeowners insurance policy, or in the case of corporate relocation, by the company handling the move. However, this isn't always the case. Often, homeowners insurance policies won't cover your belongings during a move, or will only provide limited coverage.
Homeowners insurance generally does not provide coverage for moving. If a moving company damages your personal property in the process of moving it from your old home to the truck or from the truck into your new home, a homeowners policy most likely would not cover you. The same thing goes for property damaged while on the moving truck.
Every homeowners insurance policy is different, so be sure to ask your independent insurance agent what your policy covers. Corporate relocations are usually handled through contracts with third-party vendors.
It’s important to know that corporations rarely provide additional moving coverage. You will most likely have only the minimum coverage required by the moving companies and whatever coverage, if any, is offered by your homeowners policy.
When and How Does Home Insurance Cover Moving Damages?
When you’re changing homes, your homeowners insurance doesn't offer much, if any, coverage for your personal property while it’s being handled by professional movers. You may have coverage in the event that your property gets stolen from the moving truck, but that’s not guaranteed. You’d have to consult your specific policy to be sure. Even if it’s covered, there’s likely to be a strict limit on the amount.
Homeowners insurance policies do offer loss of use coverage. This coverage protects the homeowner if the home suffers extreme damage or destruction to the point that it becomes temporarily uninhabitable. In such a case, the homeowner would have to seek temporary residence elsewhere.
Loss of use coverage would not only pay the fees for the temporary residence, such as a hotel room, but would also cover fees associated with moving your property out of your home so repairs can be done. Loss of use coverage would also provide reimbursement for storage units to temporarily house your belongings. Your loss of use coverage seeks to help preserve your property from further damage while you await home repairs.
Does Renters Insurance Cover Moving Damages?
Renters insurance also has quite limited coverage for lost, damaged, or destroyed property when you're moving. You'll mainly need to rely on the insurance of professional movers if an incident happens.
However, if the movers were to steal your property during the move, your policy would probably provide coverage to replace it. But keep in mind that if the incident occurs away from the home, you're likely to be limited to 10% of your usual coverage limit for your contents.
Don’t Moving Companies Insure My Belongings?
There are a couple of types of moving insurance (i.e., released value and full value) provided by moving services. Moving companies are required to provide released-value moving insurance, or released value restitution coverage, for damage at a minimum rate of $0.30 per pound per item for local or intra-state moves, and at $0.60 per pound per item for interstate moves.
So, if your baby grand piano is destroyed in a moving mishap, the moving company might be responsible for only about $100, which clearly isn’t enough to cover your loss.
Most moving companies will allow you to purchase additional movers insurance coverage, known as full-value moving insurance, to cover your belongings. Under this plan, your moving company will, at its discretion, repair, replace, or provide a cash settlement for any items damaged in the move. This coverage is subject to a deductible, and the costs vary by moving company.
Full-value protection, however, has its limitations. Moving companies are permitted to limit their liability for damage to more expensive items, including anything with a value of at least $100 per pound, such as electronics, jewelry, and collectibles. Also, if you decide to save money by packing your own items, the moving company may be released from liability for any damage that occurs during transit.
What Does Moving Insurance Cover?
Moving insurance is a great alternative for those who don't feel comfortable with the limitations of their moving company’s full-value protection, and can be an especially wise choice for those who are handling a move on their own. Your friends may be great helpers, but chances are they're not professional movers. If someone accidentally destroys a valuable item of yours, your moving coverage can provide reimbursement.
Transit insurance for moving typically covers any damage to your belongings that occurs during the course of the move. This can include damage if an item is dropped while loading or destroyed while on the truck, as well as damage caused by forces of nature, such as a tornado or lightning strike. Most moving insurance policies will provide coverage for the actual depreciated value of your belongings, while some providers will allow you to pay more for replacement cost coverage.
Moving Insurance vs. Valuation Coverage
Though the two terms are often confused, insurance is not the same as valuation. Moving companies often provide valuation coverage to protect your personal property against damage and destruction caused by events within the professional movers' control. For example, coverage would apply if a worker drops an item while carrying it into your new house.
In contrast, moving insurance is designed to protect against damage, theft, or destruction of your personal property due to unforeseen events beyond the movers' control. For example, if a severe thunderstorm occurs during your move and lightning strikes the truck and catches your belongings on fire, moving insurance could help reimburse you for the losses.
How Much Does Moving Insurance Cost?
Moving insurance costs can vary greatly depending on the total value of your belongings, whether you have done your own packing, your chosen deductible, and several other coverage options. Many people find moving insurance third-party coverage to be comparable in price to the moving company’s full-value protection, but superior in terms of the comprehensiveness of the coverage.
On average, third-party moving insurance costs about $1.25 per pound. However, keep in mind that policy costs can vary by company, location, and other factors.
Do I Need Moving Insurance?
It depends on how much property you're moving, the value of your items, and the risk you're willing to take. You may decide just to choose the moving company's valuation coverage if you're simply moving a few personal belongings from one small apartment or home to another. However, if you have a larger home and a lot of property, or some especially valuable items, moving insurance may be well worth it to you.
Eliminate Any Gaps in Coverage at Your Old and New Homes
You have coverage for the contents of your home under your current homeowners or renters insurance policy. The best option to protect your possessions during the move is to eliminate any gap in coverage between your existing and new policy.
One way to do this is to have the new policy start the day you are planning on moving. Not only would this help provide coverage for your contents, but it would also provide you with personal liability coverage during the time of the move.
Packing Tips for a Hassle-Free Move
If you're doing your own packing for your move, the following tips can help to keep your valuable items secure:
- When possible, limit cartons to 50 pounds.
- Use packing boxes that are sturdy and can be closed and sealed completely.
- If you still have the original boxes and packaging that your electronics and fragile items came in, use them for packing.
- Cushion breakable items well on all sides with packaging material such as bubble wrap or Styrofoam.
- Clearly label all boxes that contain delicate items as “Fragile,” “This End Up,” or other suitable notations.
- When possible, smaller, delicate items should be transported in your vehicle. If staying overnight in a hotel, store expensive items such as jewelry in the hotel safe.
Packing like a pro from the start can help you avoid the headache of filing an insurance claim or paying to repair or replace your property.
FAQs About Moving Insurance
Is moving damage covered by a standard homeowners insurance policy?
It depends. Most likely, in the way that most people are probably curious about this topic, the answer would be no. Homeowners insurance generally does not provide coverage for moving.
If a moving company damages your personal property in the process of moving it from your old home to the truck or from the truck into your new home, a homeowners policy most likely would not cover you. The same thing goes for property damaged while on the moving truck.
However, the answer still varies because there are a couple of circumstances when you’d have coverage under your homeowners policy. Under traditional homeowners policies, you have loss of use coverage built in. This doesn’t apply to moving in the way that most people think of it, though, like moving between homes.
When and how does homeowners insurance cover moving damage?
When you’re changing homes, your homeowners insurance wouldn’t offer much, if any, coverage for your personal property while it’s being handled by professional movers. You may have coverage if your property is stolen from the moving truck, but not always. Consult your specific policy to be sure. Even if it’s covered, there’s likely to be a strict limit on the amount.
Standard homeowners insurance policies offer loss of use coverage, which protects the homeowner if the home suffers extreme damage or destruction to the point that it becomes temporarily uninhabitable. In such a case, the homeowner would have to seek temporary residence elsewhere.
Loss of use coverage would not only pay the fees for a temporary residence, such as a hotel room, but would also cover fees associated with moving your property out of your home so repairs can be done. Loss of use coverage would also provide reimbursement for storage units to temporarily house your belongings. Your loss of use coverage seeks to help preserve your property from further damage while you await home repairs.
What if moving damage isn't covered under homeowners insurance?
If you hire a reputable moving company to handle your belongings, they’re required to have their own insurance coverage to protect both themselves and their customers. Moving companies typically carry insurance that protects against damage to your home during the process of moving your belongings to the truck, damage to your property while they’re handling it, and damage to your property while it’s in the truck.
In order for your home and property to be covered under the mover's insurance policy, the damage would almost definitely have to have been unavoidable and unquestionably their fault. If you have loose steps and the movers drop your dresser and it gets damaged because of your unsteady staircase, you might not be able to file a successful claim in that instance.
If homeowners insurance doesn’t cover moving damage, what will?
You’ll want to work with your independent insurance agent to closely review your homeowners policy to find out if you have any coverage for mishaps with professional movers. If you’re temporarily displaced from your home and have to move your stuff, however, you’ll be covered under the loss of use section of your homeowners policy, often up to 20% of the total value of your home insurance.
Even reputable professional movers with their own insurance may not be required to reimburse you for the full replacement value of your belongings if they damage or destroy them, though. In many cases, movers are only required to refund a specific amount for the damaged or destroyed item, often $0.60 per pound. Obviously, a lot of your personal property would be worth much more than this.
To get better protection for your belongings during a move, you’d want to look into a special moving insurance policy. Moving insurance protects your belongings in the process of the move, including loading and unloading, and their journey on the moving truck.
Moving insurance policies typically offer depreciated value coverage for your items, but full replacement coverage is also available. An independent insurance agent can help you get set up with the right policy for you.
What Are the Benefits of Working with an Independent Insurance Agent?
If you're planning to relocate in the near future, speak with an independent insurance agent before you start packing. They can help you assess your moving coverage needs and can use their relationships with several different insurance companies to find you a suitable policy at a competitive rate.
Your independent insurance agent can even find ways to save you money on your other insurance policies. Work with a local independent insurance agent today who can provide the details you need to make an informed choice about moving insurance.
Sources
https://www.move.org/do-i-need-moving-insurance/#Cost
https://www.jkmoving.com/blog/residential-moving/moving-companies-protect-belongings-valuation-coverage-vs-insurance
