If you’ve considered hiring a moving company, then you’ve most likely thought of how to insure your furniture as well. Whether you’re shifting across the country or just down the block, you’ll want to know your furniture is being well-taken care of and that you’ve also got a backup plan in the event of loss or damage as well.
If you want to differentiate between what’s noise and what’s really important, you’ll need to familiarize yourself with what moving insurance is all about. Let’s start by defining what it is.
What’s ‘Moving Insurance’?
Moving insurance is not actually your traditional insurance, per se. Moving companies, instead, provide what’s known as a valuation. Valuations function a lot like insurance.
The moving company, in this scenario, will ensure compensation for furniture in case it gets lost or damaged along the way.
Moving companies can’t sell insurance because they aren’t certified. Furthermore, the federal regulations that cover other types of insurance don’t apply to them. Ultimately, for peace of mind, valuations work a lot like the regular insurance does.
Different Valuation Types
Most of the well-known, reputable moving companies will typically have these coverage options on offer, be it for intrastate or local moves.
Released Value Protection
This is arguably the most basic solution that’s offered by most moving companies. Though a lot of the moving companies out there will not charge for this package, the customer still needs to request for it, and agree to the coverage contractually.
Released value protection doesn’t come at any extra cost to the consumer, however, it only provides minimal coverage. Moving companies will normally assume liability at around 60cents per/pound of each article.
This basically means that if your fifty-pound coffee table gets lost or ruined on transit, the mover will only be liable for a compensation payout of around thirty bucks, even though that particular piece of furniture may have had a valuation of thousands of dollars.
Full Value Protection
Full value protection is the other common solution you’ll find available to you. This option is way more comprehensive than what was previously highlighted.
However, with this coverage you’ll need to pay a premium fee upfront. Additionally, many policies of this nature often have deductibles.
Choosing this option means that the movers you’ve chosen will have to replace the goods in full value if they either lose or damage the furniture during transit.
In this coverage, the consumer declares what they think the value of their furniture is, per pound. They then have to pay a premium fee for that coverage’s amount.
Many moving companies will typically have their own policies, and most of them will include some kind of minimum value fee you’ll have to claim on the furniture.
Some regions that have rules and regulations that explicitly state what the coverage’s minimum level should be, often have them around 4-6 dollars per/pound on furniture and other household items.
If valuations aren’t really insurance, you might be thinking that you may need additional insurance for your furniture during the move for protection, right? Well, this kind of largely depends on the actual value of your belongings.
It’s important you remember not to assume that your renters or homeowners’ insurance policy can cover the furniture when moving houses.
If you’re breaking your renters or homeowners insurance policy, then it certainly will not cover your belongings during the move.
However, if you happen to be maintaining the insurance policy you were using at your previous place of residence and the move you’re making is a local one, then the policy you have might just cover the furniture when on transit.
Although, this isn’t usually the case so you need to check first.
How To Pick The Valuation That Best Suits You
Now that you know what’s available to you, how does one make the right decision?
Determine What Your Furniture Is Worth
Come up with a comprehensive list of all the furniture you own, and even consider making a video of all of this using your phone. Ensure not to forget to include important details such as existing damages and the like.
Though this might be extremely cumbersome, taking inventory of what you have before moving can help save you a considerable amount of both money and stress down the road.
Find Out Whether Released Value Protection Can Be Enough For You
Say you think your furniture weighs up to around 10,000-pounds. If you opt for released valuation coverage, then the movers would be liable to around 6,000 dollars worth of compensation (10,000-pouns times 60 cents).
Ultimately, if all your furniture is worth that $6,000 or less, then it might make the most sense, financially, for you to go with a released valuation protection setup.
Determine Whether Full Value Protection’s Additional Costs Are Worth It
Let’s say your furniture was valued at around 80,000 dollars, and six measly thousand wouldn’t even be enough to replace your vintage dinner table. In such scenarios, one may want to buy full value protection coverage.
Even though you pay a $600 premium fee that comes with a $1,100 deductible when you need a personal property insurance claims on a $2000 coffee table that price will seem totally worth it. Just ensure you know about all the extra costs involved with the coverage for things that cost more than one-hundred dollars per pound.
What Not To Forget When It Comes To How To Insure Furniture
Knowing how to insure furniture during a move doesn’t necessarily need to be as hard as most people tend to make it out to be. When all is said and done, it all depends on you and how you want your furniture protected during a move.
With that said, always keep in mind that moving insurance, or valuation, isn’t actually insurance. However, it acts exactly the same. Also, whenever you’re asked to pay for released value protection know that that’s a scam. That typically comes with no extra cost attached to it and all you have to do is ask for it.