Should You Purchase Moving Insurance?

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If you’re gearing up for an impending move, you may want to know about whether or not you should invest in moving insurance. This type of coverage protects those who are relocating from some specific liabilities involving how they’ve invested in furniture and other household possessions. The answer to this question is different for every household and every individual, but in general, personal finance experts recommend some type of moving insurance coverage if you own items that you couldn’t easily replace out of your pocket. It’s easy for people to underestimate the value of what they have accumulated in their home, for any number of reasons. Getting the best deals on moving insurance includes having a keen eye and applying good judgment to the value of your possessions.

Types of Moving Insurance

It’s important to understand that moving companies offer a variety of different formats for the moving insurance that they offer to customers. This has a lot to do with the “valuation” of household possessions. Some moving insurance coverages value items by weight, some include a “lump sum” approach, and others allow for individual valuation for items like fine art, etc. As a whole, your entire collection of furniture and other possessions is difficult to value, because it is made up of so many different items. That’s why it’s important for the individual or head of household to get involved in crafting their moving insurance policy.

Documenting Value

Unfortunately, it’s not enough to order moving insurance, and then just sit back and wait for the process to be done. In many of these cases, households find that if something happens to their possessions, it’s very difficult to make a claim. With any kind of insurance, the value of what you are buying relies on your ability to easily make claims and get payments for damages. To aid in this process, it’s important to write down detailed lists of your possessions and their values. Then, total up all the values into one overall value that you will need moving insurance to cover.

Dealing with a Local or National Company

When you have your value estimates, you’ll want to get on the phone with moving company representatives and see what you can agree to about adding the price of moving insurance to the price of the overall job. The company should be able to give you a cost breakdown, including binding or non-binding estimates for the moving job, as well as more details about how your moving insurance policy would work and what insurer provides it. If, for some reason, the moving company doesn’t offer any moving insurance at all, you can arrange a side policy through a third-party insurer.

The basic guideline for moving insurance is that you needed to cover your more expensive household items. All of the smaller things that fill your house can usually be overlooked; you can always buy another kitchen implement or decorative caddy. But for the things that you treasure, and items that may not be easily replaceable, it’s good to know that there is a policy in effect to cover loss in case something gets damaged or lost on moving day.

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