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Types of Moving Insurance

Moving your household goods from one place to another always involves a certain amount of risk. Therefore, one should always buy a proper insurance policy during relocation. An overview of various types of insurance coverage is given here for general understanding.

Full Replacement Value Coverage: This insurance coverage protects your household goods for their full replacement value. Full replacement value means the amount which is the exact cost needed to purchase a replacement for the damaged item regardless of the damaged item’s age. Sometimes a deductible is applied here. However, any money can be deducted only if it is stated in the contract signed with the moving company. Most of the policies require the entire load be covered and not just specific items.

Standard Coverage: Moving companies are abide by law to provide a minimum amount of free coverage. It is the amount that the client receives per unit of measurement ( pound/kg as mentioned in the contract) of damaged goods. It is the bare minimum coverage and doesn’t pay much if something is significantly damaged.

Storage Extension Coverage: If a client’s belongings have to be kept in storage, there arises the need to purchase extra insurance. However, if someone already has a moving insurance, this can generally be extended. it is termed as storage extension coverage.

Transit Insurance: This type of insurance covers the household belongings while they are in transit- on the way from the old location to the new destination.

Total Loss: It is a restricted insurance for the household goods based on complete loss of belongings.

One should always check the details of the insurance policy. Purchasing insurance is not enough, one should always know how to file a moving insurance claim to be able to recover from damage, if one happens during the moving process.

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