Moving Insurance Explained Get it or Regret it

NY NJ MOVERS / 05-31-2017 / MOVING

You may emit a long belabored groan with the thought of adding the additional expense of insurance on top of the already pricey move you’re undertaking, but this rings so true: Get it or regret it!! Once you’ve settled that in your mind, now it’s time to sort through the ins and outs of moving insurance so you don’t have any surprises along the way. It isn’t always easy to tell how much insurance you’ll need or if your moving company’s or homeowner’s coverage is sufficient. In fact, the truth is that while both of these types of insurance do cover some damages, they should not be relied upon when it comes to making sure all of your property is completely covered in the event of damage or complete destruction.

A Moving Company Can NOT Sell You an Insurance Policy

Many people assume that a moving or relocation company will cover any damage or destruction of their property while it’s being moved and during transit. Right? Well, not exactly. It doesn't matter how hard the mover will try to explain you about their insurance plan using words such as liability, valuation etc. This is not an insurance policy; it is standard DOT (Department of Transportation) coverage that is limited to .60 cents per pound per item -- certainly not enough to make a difference.

If you want to sleep at night, contact a licensed moving insurance broker or agent to get quotes on full coverage insurance.

What Coverage Can a Moving Company Offer?

There are the two type of coverage plans that a mover can offer you -- Full Value Protection and Released Value. These are not insurance policies governed by state insurance laws.

1) A full value protection means that a mover may repair, replace or pay the market value for a damaged item. It’s up to the mover to decide what option to choose. Movers are also permitted to limit their liability for loss or damage to articles of extraordinary value (valued $100 per pound or more).

2)Release Value is the most common option that movers choose to offer, it limits the coverage to a minimal $0.60 cents per pound.

What is a COI and Why is my Building Management Asking for it?

A Certificate of Insurance (COI) is often required by the management of a building or a managed development or a complex. The COI is provided by the moving company through their insurance company. It protects the building and the tenant against physical damage to the property as a result of the movers activity. It does not cover damages to the articles that are being moved.

Is My Move Covered if I Have Homeowners / Renters Insurance?

The answer to that is - sometimes. You'll need to call your insurance provider and ask.

In many cases the insurance will include some partial coverage but will not offer full coverage or any coverage for damages done by movers or an unprofessional labor. While it does cover your personal items, the loss has to be related to a peril that’s listed in your policy like fire and theft. Your coverage limits may be lower while belongings are being transported during a move, so it’s important to talk to your agent to determine precisely what is covered and at what limit.