Damage is unavoidable when it comes to shifting home belongings. Even though you are relocating with professional help, there are chances that your goods might get damaged or lost during transit and storage. It is highly advisable to take a moving insurance policy for your household belongings and valuables.
In India, insurance coverage is offered by several packers and movers companies for a nominal fee. Any damage or loss occurring during the move would get compensated for it. Therefore, when hiring a packing and moving company, verify that you are getting the right relocation insurance. Keep reading to know more about moving insurance.
What Is Moving Insurance?
Technically speaking, moving insurance is not actually insurance but collateral against the estimated value of your belongings. The valuation of your belongings is estimated by the cost it would require to replace everything if anything is lost or damaged. This more or less functions like insurance. If anything is lost or damaged during the transit, you will be compensated with the same amount as the item’s value.
The purpose of this type of valuation coverage is to incentivise packers and movers to take better care of your belongings. By opting for moving insurance, otherwise known as movers insurance you can rest assured that if anything is damaged or lost during transit will be replaced anew.
The logistics of moving insurance can vary depending on different policies. Some may only cover losses due to theft and loss while others would only be concerned with fires and floods. Hence, you should always read the details of your insurance policy before signing. It is best to opt for a policy which covers a wide range of scenarios from theft and natural disasters to mishandling.
To ensure your house moving insurance is valued correctly, you should also cross-check the insurance valuation of each item. For all purposes and uses, except for the legal terms, this will function as collateral insurance.
What Makes Relocation Insurance So Important?
One question that almost every person would have while relocating is “Do I even need relocation insurance?”. After all, if your belongings are sturdy enough to endure the journey or if it is a short route, paying the nominal fee would sound like an unnecessary expense.
But the thought of anything being lost, broken, or destroyed during the transit can cause a lot of grief and even keep you up at night. Insurance for movers and packers is important for this very reason. You also have to consider the fact that accidents do not occur predictably.
If due to any foreseen events, you lose a costly item, it will be the responsibility of the moving company to replace it. Bad weather, poor infrastructures and roads, and human errors can occur and there is no way to prevent them; however, paying a nominal fee can save you from having to pay the full amount for any lost or broken goods. These are several reasons that make relocation insurance a must during shifting.
3 Things To Look For When Taking Insurance
Understand the claim procedure from the insurance company as well as from packers and movers. If you receive damaged goods, you have to file claims and knowing this information will be crucial. You must know and understand the claims procedure. Some companies may have specific protocols for filing claims, and submitting documents, being aware of these protocols is of utmost importance.
Before the moving day, do all the necessary transit insurance paperwork. Without proper documentation, you will not be able to file a claim in case of damaged goods. Ensure every document is signed and stamped and keep it handy till your goods reach you safely. Paperwork can also include providing an inventory of items along with their signed and agreed value.
Another important thing is to know the scope of the moving insurance coverage. Know in advance what the insurance will cover, such as mishandling, negligence loss and more. All these are important things to know before you go ahead with insurance. Read about the exclusions and limitations clause of the coverage and ask for changes if required.
What Are The Different Types Of Moving Insurance?
Every moving insurance or valuation will make the packer and movers liable for the goods they are transporting; however, the degree of liability can vary depending on the type of insurance. Knowing about the different types of moving insurance can help you make an informed decision about which insurance suits your needs.
1. Released value protection
Released value protection is the most basic moving insurance that you can get from your moving company. This type of valuation does not require any special services to be provided by your mover and is most likely to be included in your initial contract. However, you will still be required to ask the mover for released value protection and also sign a contract, agreeing to the coverage.
You do not need to pay anything more than the initially decided amount for released value protection. The liability of the movers towards your stuff is calculated based on the object’s weight, instead of its actual value. This can be problematic in the case of damaged items that are lighter but far more expensive.
If you only have released value protection, in case of items lost or damaged, you won’t have the item replaced or compensated for but will be given a comparatively small amount as per the weight. Released value protection is only useful in the case of small and non-valueable items.
2. Full-value protection
Unlike released value protection, a valuation that can ensure the safety of your belongings is full-value protection. The full-value protection household goods insurance is more comprehensive and covers a wide range of scenarios. However, unlike released value protection, it is not covered in the initial contract and you have to pay a premium of one to two percent of the total value depending on the company’s policies.
Under full-value protection, your moving company is completely liable for the replacement value of any damaged or lost item. There are always certain exceptions to this which you have to speak to your service provider.
Most companies have their valuation policy and the details and fine print of each can vary. There is also a maximum limit to the compensation in most policies. This means if the maximum amount compensatable for the shipment is 50,000 INR, that is the highest you will be compensated even if the actual amount of the damage is higher.
In case of damaged or lost goods, the moving company will have 3 options under full-value protection. The company will either opt to repair, replace, or compensate for the damage. The choice of which method is preferable is mostly with you.
3. Third-Party Moving Insurance
If you are not satisfied with the extent of insurance your movers provide or want the additional security of insurance, you can seek out a third-party insurance agency. The decision to opt for third-party moving insurance is often based on several factors. To see if you need additional insurance, you first need to assess how much your belongings are worth and compare it with the maximum compensation the existing valuation provides.
Under third-party insurance, your moving company will be liable for the damages to the extent of its coverage and the rest will be paid by the third-party company. These types of insurance also have several clauses that you must be aware of. Under certain contracts, the goods are only insured from theft and damage when they are in transit. Once the truck reaches its destination, the insurance will not cover any loss or damages.
Other contracts may only insure goods when they are in temporary storage or goods that are stolen. As a result, when you buy an additional moving policy, you need to read the fine details to be aware of what is covered in the policy and what is excluded. It is advisable to speak to the insurance provider about your moving requirements beforehand.
What Does Moving Insurance Cover?
The specifications of moving insurance coverage depend on the specifications of the policy. Generally, good moving insurance should cover any damages or losses to your belongings during the transit, storage, and unloading of the goods from the truck. If your stuff is stolen, broken, or damaged due to mishandling of the crew, you will be paid a certain amount.
Other policies might also cover damages due to natural disasters like earthquakes, floods, or storms. It is one of the most important questions that you need to ask your home shifting services provider. The moving company must also provide you with more than one coverage options to choose from.
How To Choose The Right Valuation For You?
To choose the right valuation, you first need to create an inventory list of everything you own. You can write everything down on paper or take a video just to be safe. Document everything from chairs, books, and shelves to shoes and pens. Even write down the number of each item you own. This may seem very tedious at first but will save you from a lot of headaches in the long run.
Next, find out the relative value of each item and how much it will cost you to replace them. Also consider if something is antique, irreplaceable, or rare. Adjust your belonging’s worth according to depreciation and any stains or scratches that can diminish their value.
Finally, calculate the total value of your belongings. This will help you understand if your goods are worth paying an additional premium for protection or if the basic plan will suffice.
Tips For Ensuring A Smooth Moving Experience
- Keep Track Of Your Stuff: If you have insurance, it will be very helpful to keep track of your belongings during claims. It is best to take pictures or videos to show items in their existing conditions in case they are broken.
- Pack Carefully: Pack your belongings carefully, especially fragile items, so they do not break during transit. Improver packing can make you liable for damages, which the moving company does not have to compensate for.
- Don’t Wait To Report Claims: In case of any loss or damage to your belongings, you should contact the company as soon as possible. Waiting too long to file a complaint can often hurt your case and result in the dismissal of your claim.
Choosing the right moving insurance for home and office shifting services can be difficult, but that’s what this blog is for. Moving insurance is a crucial thing and should be a norm for all types of moving, such as office shifting, home shifting and fine arts moving. Anyone who is planning to move should always be informed properly before taking the next stop.
At Mega Pack and Carry, you can get the best advice from expert insurance providers for your belongings. To know more about this, visit our website today.