There is probably a clause in your homeowner and renter policy that covers your items while in transit, or in temporary storage. However, these clauses are subject to the terms and conditions of the contract. If you are a first-time homeowner, your current renter’s insurance may also cover your items for basic perils while in transit if you are sticking with the same insurance company. Keep in mind that if you use your home insurance and have to file a claim, your premiums will increase, and that’s an ongoing cost. It could be more cost-effective to get a one-time policy just for the move. Compare and see.
What kind of coverage does my policy provide while I move? If I move over several days, how long will items be covered at both locations? Is my home or renter insurance coverage limited while my items are in transit? Are my jewelry, wines, or fine arts covered during a move? What kind of coverage is included?
Is mysterious disappearance or theft covered during my move? Are items in storage covered, and for how long? Is breakage covered? If there is a claim, will the items be paid on an Actual Cash Value (depreciated value) or a Replacement Cost basis? Is there an option to upgrade coverage so you can get replacement cost? What deductible will I have to pay if I make a claim? Can I choose a higher deductible to save money?
Full Value Protection: Coverage for repair or replacementReleased Value Protection: May be offered at no additional charge, but would only include actual cash value coverage based on price per pound. For a 10-pound stereo, at a rate of 60 cents per pound, you would get a mere $6 of compensation.
The moving company may offer you the option to supplement the “included” Released Value Protection with a liability policy at an additional fee. If you purchase this option you may then be able to set a limit of insurance for the value of your items. In this case, you should ask for a copy of the liability policy you have purchased and check the details to make sure what you are buying is what you need. Get everything in writing. Things to ask your mover:
How will the value of damaged items be determined? Does the contract’s estimated value align with your own home inventory? Is coverage different if you pack your own things? What is the claims process? Is there a time limit? What if my old home gets damaged during the move? Is this covered? What is the deductible? Can it be raised to save money?
It can cover you in the same way that your home insurance would cover your personal items, but would not necessarily cover damage caused by the movers themselves. Ask for all the details of this coverage since it may vary from insurer to insurer. For example, trip transit would not normally cover breakage, but may cover mysterious disappearance. Most people do not like the idea of holding friends financially responsible for damages while they were volunteering to help, but it may be an option if something really valuable gets damaged.
