Different types of moving insurance

When moving, a person has to pay attention to every detail. There is the part where you have to pick the company. Then, you need to find a suitable storage unit. You also have to calculate expenses before the relocation process begins. There are just so many things to do. However, there is one important part of the relocation process which is easy to forget. That is – moving insurance. Even though it might seem insignificant, it is really important to have a good one. You never know what might happen. You could easily lose something during the relocation, the movers might unintentionally break something, or something similar could happen. So, since better safe than sorry is a really good motto, you should get suitable moving insurance. Let us help you with some of the best types of moving insurance you might find useful.

What are the types of moving insurance?

There are a few categories of moving insurance you can get from your long distance movers in Maryland. Each one of them addresses certain aspects of the relocation process. You would get one according to your needs and you need to know them well to know which ones you need. Let’s review them:

  • Basic carrier liability
  • Declared value protection
  • Full replacement liability

Moving insurance is just what you think it is. It covers the value of your stuff in case anything happens to it. The moving company typically offers covering only $0.30 to $0.60 per pound, which depends on whether you are moving intrastate or out of state. That can leave you with quite a significant gap in coverage. However, not all types of insurance will cover the real replacement worth of your stuff.

For example, a big antique bed that weighs 200 pounds won’t be covered for its total value if you get insurance from your moving company. If it gets damaged during the move, the amount you will receive because of the insurance will be around $30, even though the bed is worth $2000.

A woman is holding a pen and a document.
Make sure you read about all types of moving insurance carefully before choosing.

Basic carrier liability is the lowest type of coverage

Basic carrier liability can be described as the lowest coverage you can get. Any serious moving company will have basic carrier liability as a part of their standard moving fee. It is the minimum amount of liability a company must provide to you. They have to do it free of charge by the law when moving your stuff.

Basic carrier liability is one of the kinds of moving insurance and it doesn’t provide full coverage for damaged goods. Another term for this type of insurance is “released value”. Its limit is $0.30 (intrastate) or $0.60 (interstate) per pound of article. Ask your residential movers Baltimore about what the minimum liability is in the case of your state. Here’s an example of why this type of coverage is so bad. A 40-pound thing like a TV that would cost you $2,000 to replace would only return you around $6 for an interstate move and not more than $12 for out-of-state.

A calculator is lying on a pile of money.
Find a balance between how much you want to spend and how high the level of insurance you need.

Declared value protection is a middle-level coverage

Declared value protection is different than basic carrier liability when it comes to different kinds of moving insurance. That is because the amount of money the company owes to you if something gets lost or damaged is based on the depreciated value of the item in question. The customer declares the cost of the whole shipment. People aren’t always sure why they should declare the value of their goods. The answer is simple. Doing so allows the insurance company to create a record of the cost of your belongings in total. In addition, there is a charge of $1.25 times the full weight of the shipment. For example, if the shipment you’ve decided to cover weighs around 10,000 pounds, the moving company is responsible to pay up to $12,500 if the occasion arises.

With declared value protection, the relocators are allowed to demand $7 for every $1,000 of liability. They will add a fee of $70 to the final bill under the name of additional liability. The same 40-pound TV we talked about earlier could, in this case, collect total value if it got damaged. Even tho you may have to spend a bit more money for this kind of coverage, your stuff would be protected from any potential damage.

Full replacement value is comprehensive insurance

Full replacement value is the most inclusive among types of moving insurance, and you’ll be given full value in cash for any possessions that get damaged or lost during the process. If you have a really big number of valuable belongings that exceed the $1.25 per pound liability, you should seriously consider buying full replacement value. This is the most expensive option by far, but it gets recommended by moving and storage Baltimore for anybody who has a lot of expensive items that need to be moved and wants the top level of insurance and security.

It is important to note that the moving company carries responsibility for the first part of the package coverage. That’s somewhere around $0.60 per pound per article. Any stuff that exceeds that amount is then covered by some insurance company to make sure they have fully covered the replacement value of your possession. For Full Replacement Value, you should prepare for a minimal charge of somewhere between $3.50-$4.50 times the weight of your shipment. A deductible always comes with this type of coverage so you will carry responsibility for that deductible amount in the case there is a need for repairs or a loss of some kind occurs. The amount of the deductible is mostly like any other insurance; it can be $200, $350, or $600.

A man is signing a document.
Hire a lawyer to inspect a document with you if you want additional assurance before you sign it.

A small tip before you make a choice

Don’t wait to decide between insurance types. Don’t leave it for the last minute and have it as one of the main causes of stress on moving day. Your choice between the types of moving insurance you want to purchase will depend on a few factors. Make a detailed inventory of your possessions before you relocate. It is an important part of the process. Not just to pick the right kind of insurance that suits your situation the best, but also to have your own list of everything you own – just in case something gets damaged or lost.