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Undertaking A Big Move? Protect Your Assets with Moving Insurance.


by: Rob Sabo
01 Dec 2010

It's important to protect your possessions when moving into a new home, and there are many different types of home insurance that cover your residence and your assets. But you also can buy moving insurance to cover your goods while they are in transit--and despite careful moving, accidents can happen. Moving insurance brokers can help you find an affordable moving insurance policy to make sure your goods are protected.

Why Moving Insurance Makes Sense

Movers are required by federal law to offer moving insurance for protecting your possessions for free. However, this coverage--known as basic carrier liability-release value--usually does not adequately compensate you for damages to expensive items. When your goods are in transit, it's best to purchase additional insurance to make sure you can be reimbursed for accidents to your valuables.

What's the Best Type of Moving Insurance?

There are several different levels of relocation insurance:

  • Released value
  • Actual cash value replacement
  • Full-value replacement

Released value is 60 cents per pound per item and is the federally mandated minimum coverage for lost or damaged items. It is provided by interstate movers at no additional cost and provides insurance based on the weight of the damages or lost item, not the entire load.

Cash value covers the actual replacement cost, less depreciation. It can be expensive--Elephant Moving Company in Los Angeles quotes $36 per $5,000 of valuation for moves under $1,000, and $54 per $5,000 of valuation for moves costing $1,000 or more.

Full-value replacement protection replaces any of your possessions that are lost, damaged or destroyed with a replacement or cash settlement at the mover's discretion. While this type of insurance policy is the best for protecting your possessions, it also costs more than other types of moving insurance. Choosing a higher deductible is one way to lower costs.

Won't My Home Insurance Policy Cover Me?

The short answer: yes and no. Most experts say a basic home insurance policy covers your goods, but at significantly less reimbursement than it would cost to restore, repair, or replace a damaged or lost item. Before you undertake a big move, check with moving insurance brokers about purchasing additional moving insurance to make sure your goods are adequately protected.

Sources:
Relocation Insurance • http://www.elephantmoving.comhttp://www.elephantmoving.com/moving_information/relocation_insurance.html • Elephan Moving CompanyLiz Pulliam Weston • What your home insurance doesn't cover • http://moneycentral.msn.comhttp://moneycentral.msn.com/content/insurance/insureyourhome/p35342.asp • MicrosoftProtecting Your Household Goods: What If Something Is Lost or Damaged? • http://www.protectyourmove.govhttp://www.protectyourmove.gov/consumer/awareness/valuation/valuation-insurance.htm • Federal Motor Carrier Safety Administration