Having insurance always helps, and that is why financial planners always stress on having the right policy to protect us from untimely or unexpected financial expenses. Life insurance, health insurance, automobile insurance are the main types of insurance. However, when we are moving base from one place to another, having moving insurance always helps to get compensation for sudden expenses.
Insurance Provided by Home Insurers
There are many companies which offer moving insurance for the home insurance policy owners. However, to be on the safer side all people having home insurance should discuss and confirm with the company officials if the clause is mentioned in their agreement or not. If your home insurer is not offering you the insurance, then you should ask if you can get it after payment of a special premium.
Insurance Provided by Moving Company
Moving companies also offer insurance to their customers based on certain terms and conditions. Moving companies have their own set of rules, and it is quite possible that they will not cover some select goods for insurance. So, it is better to get all things clarified before you move with them. One of the prominent conditions laid down by moving companies offering insurance is that you can get the insurance amount for losses in transit, only if the goods have been packed by the company. Transportation of goods can sometimes lead to damage of your property and hence, you should check with the moving company if it has a policy of offering compensation for the damaged premises. Most reputed companies do offer their customer insurance benefits in case of damage to their properties.
Moving Insurance Types
Like for Like Insurance Cover
In this type, insurance rates are charged as per the weight of the items. The insurance company will be charging you separate a fee for every item it will carry for you. Though unlimited coverage is offered under this scheme, the insurance payout would increase with a rise in weight of the goods.
Value Coverage Insurance
In the value coverage insurance, moving companies decide the insurance premium to be paid, depending on the real value of the goods to be transported. This insurance offering starts with the insurance seeker declaring the prices of the goods to be carried to the moving company. Based on this information, the company will charge the insurance seeker for the insurance cover. So, naturally the costlier items will come with a higher premium as compared to cheaper items. One thing to note, here, is that you won't get insurance benefit if the prices of goods declared by you are found to be incorrect.
All-inclusive Insurance Cover
As the name suggests, inclusive insurance cover consists of all the charges and hence, a person is not required to pay any more amount in the form of insurance premium. However, the chances of getting high amount as compensation is very low in this kind of insurance and the coverage will be extremely limited.
Full Replacement Value (Against Inventory)
In this type of insurance, company will prepare a list of items which are to be covered and decides their replacement value. All those items not included in this list are not insured, and people seeking insurance have to declare all their personal belongings. If this is not done, then they will not get insurance cover for the entire shipment.
Full Replacement Value (Lump Sum)
This kind of insurance offering is much easier to understand as compared to other types of moving insurance. In this insurance type, insurance seekers will declare an amount which they would like to have as insurance cover for the shipment.
Limited Insurance Coverage
The limited insurance coverage, which is also called the named perils insurance will give insurance benefit only if the cause of loss is mentioned in the insurance agreement and discussed with the insurance seeker before. Though you do not get coverage for loses during loading and unloading of goods, you can get coverage during storage and transportation periods.
Select Inventory Coverage
This is a kind of insurance coverage in which insurance benefit is received only for items finalized by the customer. The value paid as insurance benefit would be equal to the replacement value declared by the customer.
Full value coverage insurance is useful because it covers the entire price of the property which is being moved. Most moving insurance seekers go in for the full value coverage. You can also opt for the declared value insurance policy or released value coverage in which you get compensation depending on the total weight of goods being shipped.
