Moving can be a stressful experience. One thing you can do to make it less stressful is to carefully evaluate your options for protecting your household possessions while they’re in the hands of your moving company.
A wide range of options is available from moving companies, private insurers and your existing Homeowner’s or Renter’s insurance. They can provide varying levels of insurance or valuation protection for different causes of loss. No matter which mover you select, it pays to prepare in advance so that you’ll have time to evaluate your moving insurance and valuation options.
Some Terms You Should Know
Damage, Loss, and Perils:
Before considering the difference between moving insurance and valuation, it helps to understand that there are two basic categories of loss that might occur during a move. Both types of loss are the exception and not the rule, but either or both could occur during your move.
- Damage, breakage, marring and other types of loss caused by the mover’s or shipper’s negligence, carelessness or accident.
- A casualty loss, such as a fire, windstorm or similar damage that might occur through no fault of the moving company and that often results in damage to other property besides the household goods you are moving.
Most homeowners and renters are familiar with the second type of loss and usually have either a Homeowner or Renter’s insurance policy that covers their personal property.
Insurance policies typically carry a deductible and provide coverage either on an all-risk or a named perils basis:
- An all-risk insurance policy provides coverage for any cause of damage or loss unless the cause is specifically excluded, such as wear and tear – and typically breakage and marring.
- A named-peril insurance policy provides coverage only for the causes (perils) that are specifically listed in the policy – such as fire, lightning, windstorm, etc.
Most Homeowners’ policies provide all-risk coverage for buildings and named peril coverage for personal property. Renter’s policies may be written on either a named peril or an all-risk basis.