Understanding Moving Insurance

BY Allconnect Inc | Mon Apr 15, 2013

Understanding moving insurance

Guest post by James Harrison.

Today’s cost of living is the highest ever and doesn’t seem to be slowing down any time soon. It seems as if you have to save each and every penny in case of an unfortunate unforeseen event such as sharply increased prices or even the loss of a job. You could even add moving to that list and  relocating is frequently an expensive event. Should you find yourself in the situation where  you have or want to move, there are certainly steps during the move process to save money. A smart place to save money is when considering moving insurance. Moving insurance, if wisely utilized, can definitely help save your hard earned cash.

How does a moving insurance help you save?

Moving insurance comes to your rescue when your other insurances fail to cover your damages while moving. It’s a common misperception that the homeowner’s insurance, house insurance, and the moving company’s insurance would compensate for all damages during a move. But that is not always the case.  This is where moving insurance comes into play. Moving insurance, as the name implies, is the insurance for your belongings during your move. It often covers the actual replacement cost of your item. It would make up the difference should your homeowner’s or moving company’s insurance falls short of compensating.

How to choose moving insurance?

There are 5 types of moving insurance. Each type of moving insurance offers a unique service. You could choose any combination of these types to safeguard your assets and belongings.

  1. Declared Value Protection
    Declared value protection provides for the compensation in the event of the accident or damage based on the depreciated value the asset. This means that you would be assigning value to the goods you transit. You have to make sure that you assign proper values to all your household goods, since your insurance coverage would be derived from your stated value in totality. To calculate, multiply the specific amount per pound by the total weight of the shipment.
  2. Basic Carrier Liability
    Basic carrier liability is just that, basic coverage on the moving company’s part. The insurance provides a certain dollar amount per pound per article. These values vary from place to place. So, to be on the safe side, make sure to discuss these values with your moving company.
  3. Full value protection
    Full value protection insurance pays for the entire loss, repair, and replacement of your assets. This protection is often used when the possessions to be moved are very expensive and difficult to replace.
  4. Assessed Value or Lump Sum Value
    Sometimes, the assets are small in size and light in weight but with a killer price tag. How do you deal with that? With assessed value protection you get to ensure your most valued items’ coverage. Often times, you would have to inform your movers in writing about the number of such extraordinary items in the shipment. Assessed value means the amount of money you would pay per $1000 to cover your household items to their fully assessed value.
  5. Packing Insurance
    In case, you hand over the responsibility of packing your stuff up to the moving company, packing insurance comes in handy. Should any item get damaged while packing; the moving company would pay its current market value as compensation.

Even before choosing your moving insurance type, you should work on finding an efficient and reputable house or  business movers. Finding a good mover lowers the stress of moving and often adds to the efficiency of getting into your next home or business!

Guest author bio –  Guest post by James Harrison, works as relocation consultant. He regularly contributes write ups to business websites and blogs with most of his writings based on tips for small business setups and marketing techniques. In his free time he plays sports, mainly soccer and chess. He is also passionate about reading fiction and traveling.

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