Should I Purchase Insurance Coverage For My Move? Most consumers do not pay attention to the liability coverage offered by moving companies for a local or long distance move. Many will take the risk that nothing will happen whereas some will simply assume that if something does happen that the moving company will take full responsibility and replace the item. This assumption is completely false. In the state of Texas, a moving company is required to pay $0.60 per pound per article for any item is lost or damaged during transit. If you do the math, you will find that this reimbursement is not much especially when it comes to light, expensive items such as TVs and other electronics. For example, if you have a 50lb TV and the movers drop it and it breaks, you’re only going to get $45 as reimbursement! If you have a 200lb dresser, you will receive a $120 reimbursement. In this case, it may be enough to repair a scratch for example, but if will most certainly not cover the cost of replacement if it was severely damaged. So, should you take the risk or purchase additional coverage? ...There are few things you should consider: (1) how much research did you do on the moving company you selected? In other words, did you read their online reviews, check their BBB rating and get a general feel of the company’s overall customer service? (2) Do you have expensive furniture? (3) Are you moving local or long distance? The first consideration is fairly subjective because whether or not you have a good feeling about the moving company and you did a fairly good amount of research, accidents do happen even with the best of moving companies. So if you have expensive furniture you may want to consider purchasing additional coverage. If moving long distance, there is a greater chance of your items being lost or damaged due to the fact that your shipment is handled multiple times: initially your shipment is loaded onto a moving truck then unloaded into a storage or warehouse where it will remain until reloaded onto a semitrailer for delivery. On a local move the risk is less but again even the best of moving companies have their share of damages. There are basically two types of coverage: full value replacement purchased through the moving company and full coverage insurance purchased through a third party vendor such as www.movinginsurance.com). Full value replacement coverage means that if the moving company damages or loses an item, they will be responsible to repair the item, replace it or settle in cash value with you. Full coverage insurance means that you will receive a cash settlement from the insurance company. In both cases there will most likely be a deductible that you will have to pay. Purchasing coverage though an actual insurance company is probably the better way to go since you will be dealing with an unbiased party. If you purchase full value coverage through the moving company, everything is their hands and it’s basically your word against theirs and it may be difficult to get a settlement depending on the nature of the situation. In summary, if you can afford it, I would recommend purchasing full coverage insurance for any type of move. It just gives you that peace of mind and puts full responsibility on the moving company. Of course be sure to keep all receipts and documentation of contents packed and moved. If however, you’re on a budget I would definitely consider purchasing insurance through a third party vendor especially if moving long distance.
I have created my blog for two reasons, the first reason is to give you the information to make an educated Decision when choosing your moving company, the second one is to even the ground for our company, we never low ball and our prices are real, you should compare apples to apples