The American diplomat and statesman, Benjamin Franklin, said, “in this world nothing can be said to be certain, except death and taxes.” There is another definite that we encounter upon leaving the nest, and that’s moving. For some, moving out of an old home or office can be a time for nostalgia. But it can also be a challenging experience, filled with anxiety and surprises around every corner. Luckily, there are many types of insurance policies, like mover’s insurance and even most renter’s insurance, that can help you to breath a little easier.
Jay McDonald, a writer for BankRate.com, says that most renter’s policies will cover damages or lost items during the move, as long as you keep the insurance active. If you choose to put some or all of your belongings in storage at an off-site facility, make sure that your renter’s insurance will cover the items you’ve stored as well.
The Self Storage Association says that almost 10 percent of American rent a storage unit. Loretta Worters, vice president of the Insurance Information Institute (III) advises new storage users to find out if the insurance they’ve purchased will cover all damages. Many of the companies that provide storage units for rent offer storage insurance policies that will reimburse a customer for damages due to lost or stolen items, but won’t cover the cost of damages that occur because of flood, mildew or mold.
If you are planning to move to another state, you could look into purchasing mover’s insurance to protect your belongings as they are in transit. According to ProtectYourMove.gov, Federal law requires all mover’s to offer you the option of purchasing two types—full value and released value—of insurance if they are moving between state lines.
Full Value Protection
ProtectYourMove.gov says that under Full Value Protection your mover is liable for the replacement value of lost or damaged items that are transported under their care, during the move. If any item is lost or damaged, the mover will offer to either replace the item, repair the item, or offer a cash settlement to replace or repair the item. This policy is the most comprehensive and often elected as the default policy for most movers and is often used to insure items that exceed $100 per pound in value.
Released Value Protection
The most economical policy is Released Value, as it is offered at no additional charge. It covers only the minimal amount of liability. This policy assumes liability of no more than 60 cents per pound of a lost or damaged item. So, if you have a valuable item that is worth $1,500 and it is lost or damaged and the item only weighs 10 pounds, the moving company will only be required to reimburse you for $6.00 of the damages.
Purchasing insurance might seem like an added expense, but in the long term, it is definitely worth it and will offer you confidence in knowing that your belongings are protected and secure.