Make Sure You Get Full Replacement Coverage from a Third Party When You Move
Many people think that their homeowners insurance policy covers their move completely. Others rely on valuation coverage offered by the moving company they hired for the job. However, all you need to know is what’s covered and what’s not covered. So, before you decide to go with your homeowners insurance or your moving company’s valuation, you should consider purchasing moving insurance through a third party.
If You Have Homeowners or Renters Insurance
Most homeowners/renters insurance policies place various restrictions on coverage for contents during transit, oftentimes excluding breakage and capping coverage at 10% of the value assigned to personal effects within the home. This ultimately leaves their customers under-insured.
Even if your homeowners/renters insurance fully covers your move, you may still want to think twice before filing a claim under these types of policies as doing so may adversely affect your rating, insurance costs, and ability to maintain your homeowners/renters coverage in the future.
If You Are Offered Moving Company Valuation
It is important to understand that liability per pound valuation is NOT moving insurance. Proper insurance carriers are subject to Department of Insurance regulations in every state to protect the public from bad faith adjusting. Moving companies, however, are NOT subject to these insurance regulations. Valuation is not full replacement coverage, its payment is calculated by 60 cents per lbs.
Many moving companies that offer liability per pound valuation coverage adjust their own claim payments, requiring you to rely on their unknown calculations for claim settlement. Inherent conflicts of interest exist because the moving company is determining how much to pay you in the event of a claim for damages that they themselves may have caused.
Even if you have information that supports your claim that your belongings were stolen, damaged or lost, many moving companies require you to prove that their negligence resulted in the loss, placing a high burden of proof for you to meet.
Certain acts of God such as windstorms, floods, fires, smoke, hurricanes, landslides, and earthquakes are often excluded by the moving company’s valuation liability, but are covered under moving insurance from a third party insurance provider such as MoveInsure.
Full Replacement Coverage by a 3rd Party Is the Smartest Choice
MoveInsure offers proper moving insurance by RLI Corp, a publicly traded insurance carrier rated A + Superior by A.M. Best — one of the highest ratings for financial strength and stability in the industry. Claim payments are assessed by an outside third party, not by the moving company involved with the move. It is also a onetime insurance policy, which means your homeowner policy’s rates are not affected if you file a claim after the move.
