Do You Need Moving Insurance?
Apr 11, 2022
What concerns you the most when relocating home? The process of loading and moving precious household belongings may cause damage. You can’t deny that relocating valuable items, like a plasma TV, lamps, antiques, furniture, etc exposed to various potential problems, which is why people pay attention to moving insurance.
You might have homeowners insurance policies, but they don’t cover items damaged during a move. However, many
Perth Removalists offer valuation options, particularly full-value protection, to their customers. Under this, they are liable for the replacement value of damaged or lost items in your entire shipment. So, choose your removalists wisely and make the right decision.
But, if you are still concerned about fire-related or weather-related damage to your goods, you should opt for third-party insurance.
Here we bring you a complete guide on moving insurance and the importance of buying it when moving.
What is Moving Insurance?
You can’t entirely rely on a moving company because
injuries and accidents can happen to even the most trained people or professionals. So, consider the moving insurance for the utmost safety of your household belongings.
Moving insurance usually protects your goods that get lost or damaged during relocation. The insurance coverage depends on your policy, but it can range from floods and fires to removalists accidentally dropping your delicate Plasma TV.
It is important to know that removals companies are not obligated to sell insurance, but they have to offer valuation options.
Types of Moving Insurance and Valuation Options
Valuation is the amount of liability a removals company takes if your items get damaged during a move. However, coverage undervaluation is very limited compared to third-party insurance and usually refers only to how much removalists will reimburse you for a damaged item.
Here are the two most population valuation options offered by moving companies in Perth:
1. Released Value Protection
Also known as basic coverage protection, this valuation option offers bare minimum coverage- not more than 60 cents per pound. You will be reimbursed for everything, including your expensive electronic item, at 60 cents per pound.
For example: if a moving company damage your 350-pound dishwasher that cost $1,500 when you bought it, the company will only be liable for $210 under this released value protection.
The best thing about this coverage is that companies offer it at no additional charge. However, you must sign a contract agreeing to it. That’s why most people don’t opt for this option because it serves no purpose, especially when moving an expensive item.
If you do not choose a released value, your items will be automatically transported at the full value protection level of liability, and you have to pay accordingly.
2. Full Value Protection
There is no denying that your household belongings are more than 60 cents per pound. For that specific reason, moving companies offer a ‘ full-value protection’ option.
The coverage depends on your valuation of the items being moved. The cost is estimated at 1 per cent of the valuation. For instance, if you have decided to relocate items worth $70,000, you will pay around $700 to get full-value protection.
The moving service providers are liable for the current market value of your good and will offer one of three options if they damage your belongings during the process:
• Replace the item with a similar one
• Repair them
• Offer a cash settlement equal to the damaged item’s current market value.
• If your five-year-old fridge is damaged, the company will not replace it with a new one. They will give the fair market value of a five-year-old fridge.
Tip: Do proper research and
choose the best house moving company for you precious possessions.
Know about caveats
Licensed removalists in Perth are not liable for items worth more than $100 per pound. If you want their coverage, make sure you specify in writing while hiring them.
How do I know if my moving company offers moving insurance or valuation?
A good removals company always offer valuation options, with released value protection included in every moving package. So, it is good to do thorough research and shortlist experienced and renowned options. Such companies offer some type of valuation policy. For more details, you can directly ask them or visit their official website.
Clearing all doubts about moving insurance before making the final decision will give you peace of mind.
What is not included in the valuation coverage?
Natural calamities, fires, and any other event beyond a moving company’s control are not covered by valuation. Here are some examples to help you know what doesn’t include in a valuation coverage:
• If you’ve packed your belongings on your own instead of professional removalists.
• Failed to report damaged or lost items immediately after the move.
• If you haven’t specified in writing before the move that an item has high value.
• If you packed hazardous items like chemicals, batteries and paint can.
Tip: If you are running low on budget, then consider
tips to pack your outdoor items, furniture and other belonging safely.
Why Third-Party Insurance Plays a Crucial Role?
In layman’s terms, third-party insurance providers manage moving insurance for removalists because they are not liable to sell insurance themselves. With this additional option, you can purchase full coverage and compensation for your belongings’ damage.
Make sure you know what covers in your third-party moving insurance to get the most out of it.
Final Verdict
Do You Need Moving Insurance?
This depends on how expensive and valuable your belongings are- and make your decision wisely. Make sure you hire good removalists in Perth and opt for the right moving insurance if you want the
safety of your house and much-loved possessions, especially for long-distance moves. It is good to prepare everything in advance when moving to Western Australia.
