The Holmes-Rahe Stress Life Stress Inventory is generally accepted as the most reliable clinical quantifier of stress by mental health professionals. And it concludes that one of the five most stressful events in life is…
Moving.
It’s an expensive, time-consuming, exhausting, alienating experience that, past a certain age, we rarely choose to undertake. It requires an almost superhuman ability to plan. But according to the U.S. Census Bureau, Americans move an average of 11.7 times in their lives. That’s 11 opportunities for your couch to fall down the stairs. Eleven shots to shatter that glass coffee table. Eleven chances for those “movers” to “move” your “property” to a “new home” where you “have to file a police report and never get it back.”
But the good news is, there’s moving insurance.
It’s relatively cheap, short-term in scope, and could even be included in an existing renter’s insurance policy. Or, if you’re already a property owner, many homeowner’s policies also cover your possessions while they’re in transit. However, if you hire a moving company: personal renters or homeowners insurance policy likely does not extend to them.
In that case: the moving company itself often offers insurance to protect your valuables. Overall, you’ve got three options if you’ve booked a moving company:
Released-value protection
Free stuff is rarely worth it, and this is a perfect example. This kind of insurance comes at no additional cost and is included in the base fee. Amazingly, claims are measured in poundage – usually covers 60 cents per pound of damaged, stolen, or lost item, no matter the article’s actual value.
You read that right. Cents. So if the movers drop your 10-pound custom computer: you’ll receive a reimbursement of $6.00. Always check with your movers before you sign the contract to see if this kind of insurance is included, or if there’s an additional fee. Look even harder if it’s a man-with-a-van situation. They may not be insured, at all.
Full-value protection
An upgrade from released-value protection, this coverages means you’ll be reimbursed the total replacement value of anything damaged or lost during the move, if it can’t be repaired. However, high-value items like jewelry, art, and collectibles are usually excluded.
The rate is usually 1-3% of the total claimed value of belongings moved for full-value protection. So if everything you own is worth $20,000 you’d have to shell out $200 for a full-value policy. And with these plans, you’ll probably have to pay a deductible if you make a claim.
Third-Party
Look into third-party moving insurance if you really want coverage – including protection against natural disasters on moving day.
This additional coverage includes all the protections discussed above. Plus, third-party liability insurance covers the market value of lost, stolen, or damaged items – not just poundage or repairs. However, this kind of coverage comes at a price. Usually, the insurer demands an upfront fee of up to $2 per pound of belongings.
One last thing to keep in mind: Certificates of Insurance.
If you’re moving into an apartment, condo, or otherwise shared and managed building – make sure to request the COI from the building manager to prove that movers are insured against any damages they themselves might cause to the building. Picture the dreaded, stereotypical example of a dropped piano.
Hopefully, you already have a thorough understanding of any existing homeowners or renter’s insurance. Call your agent and discuss your options before considering aftermarket insurance. But, when it’s time to move: always consider your options. Anything that can make the experience less stressful is worth it.
