Should I Buy Moving Insurance or Not?

18 May 2010- This is the intriguing question that comes to your mind when you decide to move- should I buy moving insurance or not? Sometimes you might come up with reasonings about not to purchase moving insurance. These can be thoughts like

• Moving companies offer insurance by default.
• My home insurance covers the value of my property even when it is in transit.
• My company will bear the expenses in case of any damage to my moving goods as mine is a corporate relocation.

But wait- THIS IS NOT ALL TRUE.

Why You Should Purchase Moving Insurance?

The truth about moving insurance is that

• Your moving company will not give you any insurance. What they offer is 'valuation' and not insurance. This 'goods valuation' offered by moving companies has been made popular by the name of moving insurance. In fact, a moving company offers different types of valuation such as declared value, lump sum value and full value protection for your goods in transit.
• Your home insurance or renters' insurance policy covers your household goods while they are in your residence and not while in possession of the moving company. However, some of the homeowners insurance typically cover 10% of the value of your personal property while it is in transit but you can make it out very well that it is not enough. In case of any mis happening/ accident/ damage of goods, this 10 percent will not be a fair amount to compensate your loss!
• If yours is a corporate relocation, you must know that most of the companies sign a general agreement with a third party relocation company. Unless your employer directs otherwise and also pay for it, according to the general agreement, the moving company covers the liability at the minimum coverage possible. That is again not enough in case of any damage to your moving goods.

Now you decide, whether you should buy moving insurance or not? In my opinion, it is always a wise decision to purchase moving insurance because while in transit, your goods that you have 'earned' through hard work, is at the maximum risk. There is one other way to ensure that you get value of your goods on move if damaged and that is to buy transit insurance from your insurance agent or the moving company you have hired.

To know about the types of moving insurance coverage, read Moving Insurance