5 Benefits of Having Moving Insurance

Ferguson & Ferguson

Attorneys at Law

January 12th, 2021

5 Benefits of Having Moving Insurance

Relocation is a stressful enough time without all the possible complications that might happen along the way. Luckily, there’s a lot you can do to make sure that nothing wrong happens or to, at least, minimize the chances of it happening. One of the worst things that could occur during relocation is losing or damaging your belongings. However, this is fixable. Here are the five benefits of having moving insurance and all that you need to know about it.

What does moving insurance entail?

First, to know if you want moving insurance and what its benefits are, you need to know what it is. In a sense, it works similarly to auto insurance. No matter how careful you are, accidents can always find their way to you. You can hire the best companies and prepare really well, thinking that there’s no way you’ll make a mistake but still end up losing a lot of money on things you couldn’t have predicted. It offers to protect your belongings that could get wrecked during your relocation.

Although some characteristics are the same for any company that offers moving insurance, there are always some details and differences that vary anywhere from fires and floods to accidental droppings.

However, moving companies cannot really offer insurance, so to speak. On the other hand, they do provide valuation options since they’re required to do so under federal law. Aside from the valuation, you can also get insurance from a third-party.

Fire

Fire

Although there are many benefits to having moving insurance, their coverage varies depending on which kind you choose.
A fire destroying someone’s belongings.

What is valuation?

Valuation is quite similar to any other form of insurance. Your movers ensure appropriate compensation for your possessions in case of damage or loss. Nonetheless, relocation companies aren’t certified by law to offer insurance.

Different kinds of moving insurance

There are different kinds of valuation and, depending on which one you choose, you’ll experience different benefits of having moving insurance. Here are the three options that are at your disposal:

Released value protection
This type of insurance offers coverage in the sum of up to $0.60 per pound for your items. However, it won’t cover the full market value. It’s a pretty standard kind.
FVP
FVP or full-value protection gives you full coverage on all the inventory you’re relocating. It will also repair anything that’s damaged or broken. You can also get a cash settlement that’s equal to your items’ market value, but it won’t cover the value of pricey belongings.
Third-party insurance
The aforementioned third-party insurance will cover anything destroyed because of natural disasters, including the items that are more expensive (over $100 per pound).

Things to consider before focusing on the benefits of having moving insurance

Determine how much your possessions are worth
You need to take some time to assess the value of all your items. This will be the most critical piece of information you’ll need to see which moving insurance you’re after and what its benefits will be.
Decide if all the extras that they offer are worth it.
Once you assess your possession’s value, see what kind of offers you’ll get. Don’t settle for moving insurance that isn’t up to your standard.
Covering valuable items will cost you more.
Be aware of the fact that any valuables you want to relocate will cost extra.
Go over all the details a few times.

Make sure to go over everything you’ve planned a couple of times. Do so with the help of a trustworthy law firm to be entirely sure that you’re making the right choices.

1. It’s better to be safe than sorry
One of the best benefits of having moving insurance is predicting anything that could happen and getting a safety net. From there on out, you get to enjoy a relocation without unpleasant surprises. Lessening the risk of failure by being responsible and cautious is a great way of dealing with potential problems.
2. You’ll do everything more freely
Once you have moving insurance, you can relax and not worry too much. As a result, everything will run more smoothly, and you won’t even feel the relocation process. You won’t have to think about any of the what-ifs. If a truck accident were to happen, your belongings would be returned to you, or you’d be fairly compensated.
3. You’ll be able to determine your budget to a tee
If you don’t have moving insurance, you need to think about dealing with potential loss all the time. A handy benefit of moving insurance is that you won’t need to worry about bankruptcy. Yes, you’ll need to set aside a sum of money that you’ll be investing. However, that sum of money will be predetermined, and there’ll be no surprises. On the other hand, if you were to skip over getting insurance, you’d wonder how much you could lose.

Investing in having moving insurance will offer you plenty of benefits that’ll later make up for the dent in your budget.
A person counting money to determine their moving budget and see how much they can invest in moving insurance.
4. You won’t need as many additional services if you have a safety net
If you don’t have the benefits of getting moving insurance, you’ll probably try to overcompensate by getting all the other forms of safety nets. This could end up costing you more than if you were to invest in valuation. Be smart when thinking about your options. Don’t rush into anything and ask people that are more experienced than you.
5. You’ll be able to splurge on the items you actually want
Although it sounds too good to be true, being aware of all the benefits of having moving insurance will save you money no matter if you need it in the end or not. This is because it’ll inevitably change your mindset completely. You’ll feel safer, more responsible, and in charge. Subsequently, there’ll be more room to splurge on some items that you’d feel too self-conscious investing in under other conditions.