Ask These Great 8 Insurance Questions Before You Move
Packing up everything you own and moving is stressful enough. Having your belongings lost or
damaged in a move, either by yourself or professional movers, is more stress that you don’t need.
About 37 million Americans moved in 2009. Loss or damage happens during one of every four
moves, according to Jim Sullivan, president of Humboldt Moving and Storage in Canton, Mass.
Whether moving across town or across the country, how do you determine whether you have enough
insurance to cover any losses? How do you get your belongings insured for a move?
Here are eight insurance questions to ask if you’re on the move.
1. Does my home insurance policy cover your belongings when they’re being moved or when
they’re put in storage?
Chances are, it won’t. Your policy likely won’t pay if your items are broken, scratched, dented or otherwise damaged by a mover. Likewise, your policy likely won’t cover you if you can’t pinpoint when and where a box of your Grandma’s china went missing.
2. What if my belongings freeze or overheat in the moving van?
Insurance issues can vary greatly if you’re moving on your own versus using a professional mover.
These are “two big exclusions" in many homeowner’s policies . In these instances, you’re probably not covered by your home insurance policy.
3. What if some sort of accident destroys the moving van — and your belongings?
Your home insurance policy probably will cover the loss if the moving van catches on fire, explodes, is vandalized or is involved in a crash.
4. What does my home insurance cover if I store my belongings before moving into a new house?
If you store your belongings in a public storage facility, you’re probably 100 percent covered. However, if you store your belongings in a friend’s basement, you’re probably covered for just 10 percent of their value.
5. What if I’m doing the move on my own?
In this case, you make the move at your own risk. If something is damaged due to your own negligence, you might be covered, but the (home) insurance company can review the claim carefully to make sure the damage was not intentional.
If you’re renting a vehicle from a place like U-Haul, remember this: Most personal auto insurance policies exclude coverage of rental vehicles with a gross weight of 9,000 pounds or more, according to U-Haul.
6. Should I accept the coverage offered by a professional mover?
Experts say it may be a good investment. If you’re using a professional moving company, there are two types of coverage available: Full value protection, also known as full replacement value, and released value, or basic carrier liability.
Full value protection is recommended by movers because it usually provides cash to repair or replace an item at its current value. Released value coverage is free to customers, but covers only pennies on the dollar for the value of an item. The valuation is done by weight. For a typical three-bedroom house with 20,000 pounds of items to be moved, full valuation for $120,000 in coverage will cost $700 for an interstate move.
Basic carrier liability is free for customers and pays up to 60 cents per pound, so a 10-pound stereo component valued at $1,000 that is broken in a move will be worth only $6 in
reimbursement. “You can see that it makes sense for people moving to take out the coverage.
Accidents do happen.
The Insurance Information Institute, points out that this coverage isn’t actually insurance. The two options from movers aren’t policies governed by state insurance laws. Rather, they’re liability contracts governed by federal law.
7. How do I get reimbursed if I’ve taken out liability coverage from a professional mover?
To collect on coverage, the items must be on an inventory list created at the start of the move. Belongings of extraordinary value, such as jewelry, may be subject to limited liability if you didn’t list them as high-value items.
8. What’s the real value of purchasing coverage from a professional mover?
Buying the mover’s coverage can prevent headaches with your home insurance company. More importantly, buying the mover’s insurance can leave your homeowner’s insurance record unblemished. A move-related claim on your home insurance policy could result in a premium increase.
For More Information on Moving or Storage Insurance
Please Contact Your Local Insurance Agent:
Jason Shroot
Diversified Insurance Solutions
714-988-3325
