Finding ways to save money during a move is a concern for many, so movers’ insurance often goes completely unused. On the opposite end, some others are very skittish and will purchase all kinds of coverage without really understanding what they are getting for their money. Both of these approaches to handling the unforeseen events that may happen during your next move are not the best way to go about it. In today’s blog post, we will discuss your moving insurance options and when you should consider investing in some.
Most homeowners have access to three different kinds of insurance that covers events that occur during a move. There is Actual Cash Value, BASIC, and Replacement Cost Insurance. Here’s what you need to know:
Actual Cash Value insurance
Actual Cash Value insurance attempts to place a value on your belongings that reflects their perceived level of wear and tear at the time of a damaging incident during the move.
In some ways, this insurance is great because it only costs a few dollars per thousand dollars of coverage. The major drawback, however, is that depreciation is stacked on top of a deductable that is fairly high relative the average value of household items likely to be lost or damaged during your move. Let’s say you have a television that cost you $1000 a couple years ago and it gets destroyed during your move. That TV may be depreciated to about $500 in value, and then you may face a deductable as high as $250. You are now only getting $250 on your TV, which will certainly cost you much more than that to replace it with a new TV of similar size and quality.
Basic Insurance has no premium but all damage is compensated by approximately sixty cents per pound. This gets included automatically for many professional moving service. This level of coverage is functionally rather useless for anything of real value. At sixty cents a pound, you would only get back around $15 on that broken TV.
Replacement Cost Insurance
Replacement Cost Insurance is a more robust coverage plan. If you are ever going to pay a deductable, it should be for this movers’ insurance plan. It isn’t based on depreciating the value of your items, so that TV that was broken can be valued at $1000, minus a deductable of $250 would come to $750. The catch is that you are paying more money per thousand dollars of coverage. You may have to pay closer to $8 or $9 per $1000. So this plan is more expensive if nothing goes wrong, but far better if something does.
Zooz Moving Insurance
At Zooz Moving, we work with the world renowned company Baker International to provide you with the moving insurance that fits your need. Visit their website and please call us with any questions. We’re happy to recommend an insurance plan that best covers your local, long distance, or commercial move.