Everything You Need To Know About Moving Insurance

Insurance Law by Nick Youngson CC BY-SA 3.0 Alpha Stock Images

If I were to choose the most misunderstood part of the moving process, it would be insurance. Customers aren’t to blame, though. State and federal regulations make it unnecessarily confusing.

Before I get into the nitty gritty of moving insurance, I should note that moving companies are not insurance companies. Insurance is not automatically included in moving costs, but that doesn’t mean you’re completely without coverage, nor does it mean you don’t have options.

Standard Valuation Coverage

Let’s first talk about the type of coverage you do receive with a move. All residential moves carry what is called “valuation coverage,” which should never be mistaken for insurance.

Valuation covers your household goods at $.60 per pound per article. In other words, if something were to happen to something that weighs 100 pounds, you would receive $60, regardless of the value of the item.

There are a few reasons for that, but one is that there is no way a moving company can determine the value of an item, especially when the item is used.

Additionally, valuation coverage does not cover boxes that you’ve packed unless there is visible damage to the outside of the boxes.

However, we do recognize that in most cases, that kind of coverage is insufficient, to say the least. That’s where actual insurance comes in.

Moving Insurance

Some large moving companies offer insurance and most smaller companies, such as Ninja Movers, work with third party insurance companies where you can purchase insurance on your shipment.

The typical cost for full coverage insurance is about 1 percent of your declared value. If you declare that the shipment is worth $10,000, for example, you would pay $100.

Homeowners Insurance

In most cases, homeowners insurance does not cover moves. You might check with your insurance company to see if you can purchase a rider on the policy.

However, your homeowners insurance policy would likely cover your goods if they are in storage with a moving company.