When planning a move, it is an excellent time to review your homeowners or renters insurance policy to see if it provides coverage to your property. For many homeowners and renters, additional insurance coverage is needed while moving to a new home.
Standard homeowners and renter’s insurance provides financial protection against loss for the policyholder’s personal property. The policy covers the belongings while at the policyholder’s residence, in transit, or at a storage facility. However, these insurance policies do not typically pay for damage to personal property while being handled by movers.
Does Your Current Insurance Policy Cover a Move?
Contact your insurance agent with questions regarding personal property coverage while moving.
A typical homeowners insurance policy covers:
- Storm damage, windstorm, lightning, hail, hurricanes, and other natural disasters.
- Water damage from leaks.
- Catastrophic ground collapse coverage.
- Fire damage.
- Costs for personal property loss.
- Accidents in the home or on the property.
- Additional living expenses of living away from home if you cannot live there due to damage from an insured disaster.
Renters insurance typically covers:
- Personal property protection for covered possessions.
- Liability protection should someone be injured in an accident associated with the property.
- Loss of use in case the home becomes uninhabitable due to a covered loss.
Standard homeowners and renters insurance policies cover a wide range of property damage; however, they do not typically cover damage to property while being handled by movers.
What Types of Additional Insurance Coverages are Available for a Move?
Although standard homeowners and renter insurance policies do not typically cover personal property during a move, insurance companies offer special coverage. Plus, moving companies often provide special liability coverage. Your insurance agent can review all the available options to help you determine the best option.
Some of the options available through insurance companies for moving can include:
- Trip transit insurance covers personal property for uncertainties such as theft, disappearance, or fire while personal property is in storage or transit. Trip transit insurance does not cover property breakage or flood-caused damage.
- Special perils contents coverage covers breakage for all but the most fragile items.
- Floater insurance protects valuables such as jewelry, china, fine art, and collectibles.
- Storage coverage is beneficial to have when keeping personal property at a self-storage facility.
Coverage options that may be available through a moving company may include:
- Full value protection is a warranty plan under which the mover is accountable for the replacement value of the personal property that is being moved.
- Released value protection provides the minimum coverage if the movers lose or damage personal property. There is no additional fee beyond the moving fee.
- Separate liability coverage may be offered by movers to supplement released value protection for an additional fee.
- Auto transporters are legally responsible for carrying liability insurance in compliance with the United States Department of Transportation.
It is important to understand that moving companies are not licensed to sell insurance and are not governed by federal regulations that apply to insurance companies. Coverage provided by a moving company is not insurance. Rather, it is liability coverage in the event your belongings are lost, damaged, or destroyed.
Become Familiar with the Professional Mover’s Agreement
Review the agreement with your moving company to understand the level of protection it provides in the event of a loss. The information to look for includes:
- Determine the type of coverage provided by the moving company and how much coverage it provides for damages or loss to your personal property.
- Review the mover’s agreement and compare it to the estimated value of the personal property.
- Enquire about the maximum value of the mover’s coverage to make sure it is enough coverage in the event of a total loss.
- Check and confirm that the moving company’s coverage applies to property damage in both the home you are moving from and the new home.
- Know the time limits for filing a claim with the mover. Be sure it gives you time to check for damage to your personal property and file a claim.
Your insurance agent will use this information to determine how much additional insurance coverage may be needed for the move.
ABC Dennis Insurance Agency
ABC Dennis Insurance is an independent insurance agency established in 1997 that provides insurance for individuals, families, and businesses.
As an independent agency, we find the best coverage with the most competitive rates among multiple insurance companies. This is important because no insurance company can meet every insurance need. So, we shop multiple insurance carriers to find the coverage that best fits our customers’ every need.