May is National Moving Month and every year more than 40 million Americans will move, according to the American Moving and Storage Association. As you pack up your belongings and move across town or across the country, make sure you don’t forget to “pack” your insurance coverage.
Home Sweet (New) Home
When you move from an apartment to a house or house to house or apartment to apartment or condo to… well, you get the idea… your homeowners or renters insurance won’t follow on its own. Because a homeowners or renters insurance policy takes into account factors such as the building material used to construct your home, fire prevention systems like smoke detectors, sprinklers, etc., moving to a new home means that these factors could very well change, and as your risk changes, so should your insurance.
Depending on whether your move is across the street or across the country it’s important that you discuss your move with a Trusted Choice ® Independent Insurance Agent.
Is my stuff covered during the move?
Let’s say that you’ve got everything but the kitchen sink (which you’ve left for the people moving into your old home) packed into the truck for the big move, but there’s an accident with the truck and as a result antiques, carefully packed china and the 60” flat screen are all damaged beyond repair. Are you covered?
Well, that depends on whether you’re moving the items yourself or have contracted with professional movers and where you’re moving to. If you use a professional moving company, under federal law interstate movers are liable for the replacement value of lost or damaged items, so if you’re moving from North Dakota to North Carolina the moving company is liable for your stuff. However, they may present you with different options for coverage, including Full Value or Released Value. According to the US Department of Transportation, Full Value is more comprehensive coverage but it may cost more out of pocket, whereas Released Value is offered at no additional cost, but may only cover your belongings up to 60 cents on the dollar. If you opt for the Full Value, make sure you have an up-to-date estimated value for the belongings you’ll be moving. If you have an accurate and comprehensive home inventory, this shouldn’t be too difficult of a task.
If you’re renting a truck or a van for the move, the rental company may offer you some coverage. One argument for taking the coverage is that if something does go wrong and can be covered by the rental policy, a loss would not reflect on your own insurance coverage, but again, the coverage they offer may not be enough to replace or repair damaged or lost items. Talk to your Trusted Choice agent about how your existing coverage would respond to a loss.
Mind the Gap
You have coverage for the contents of your home under a standard homeowners or renter’s insurance policy, so the best option to protect those contents (and a Trusted Choice agent can help with this) is to make sure that there is no gap of time between the expiration or cancellation of your policy on the home you’re moving out of and the effective start date for the policy for the home you’re moving into- one way to do this is to have the new policy start the day you are planning on moving. Not only would this help provide coverage for your contents, but it would also provide you with personal liability coverage during the time of the move.
Because Trusted Choice agents have the ability to work with multiple insurance companies, they can work to help you find the coverage that’s right for your new place and for getting you and your stuff there. If you’re moving out of state, ask your insurance agent if they’re licensed in the state you’ll be moving to, and if they aren’t, ask them if they are able to refer you to another agency or use the Find an Agent locator for a Trusted Choice agent in your new hometown.