When you are shifting your base from one place to another place, household belongings are exposed to various types of potential risks. From physical injury to loss of belongings, one can face loss or damage in any form during household moves. In such scenarios, moving insurance plays a significant role in providing financial assistance.
What is moving insurance?
This insurance provides financial protection for your household belongings when you are transporting from one place to another. There is a risk of being lost, stolen, or damaged during the transit. There are various types of moving insurance available based on the scope of coverage offered. The coverage can range from basic to comprehensive to cover the loss of your belongings.
Availing of insurance can offer peace of mind during your household moves by ensuring financial security in any unforeseen events during the move.
How does moving insurance work?
Coverage in moving insurance is decided based on the value of the item. The insurance company determines the applicable coverage amount once you declare the value of your belongings. In case of any unforeseen event during the move that causes the loss or damage to your belongings, the decided amount of coverage is reimbursed. The reimbursement amount may depend on the type of insurance policy availed. This could be reimbursing a predefined amount per kilogram per item or compensating for the full value of goods.
Types of moving insurance
There are three types of moving home insurance cover offered. Let us understand these moving insurance types in detail:
Insurance with released value protection
Released value protection refers to insurance coverage that offers only basic coverage and no additional coverage included. This coverage can be availed at affordable moving insurance rates. Regardless of the actual value of the item, this insurance policy type provides coverage up to only a certain amount per pound per item. And, this coverage is predetermined. Let’s take an example to understand this coverage.
Let’s say you’re moving with released value protection as included in moving service of the company you have chosen. Let us assume this policy offers coverage of up to INR 50 per pound per item. One of the items a refrigerator weighing 200 pounds that you are moving gets damaged totally during the move. According to released value protection, here is how the reimbursement amount is calculated regardless of actual value of the refrigerator.
Reimbursement amount = INR 50 X 200 pounds = INR 10,000.
That means, the maximum reimbursement is restricted to INR 10,000 even if the actual value of the refrigerator is INR 35,000.
Third-party insurance
Instead of availing of the coverage included in the moving service offered by the company, some people prefer to buy insurance through third-party insurers. Such policies are generally referred to as third-party insurance. This can offer a more comprehensive coverage designed as per the individual need at an additional cost of premium.
Insurance with full-value protection
Full-value protection in moving insurance provides complete value protection to the goods as its name implies. Though the insurance rates can be relatively higher for this type of cover, you can be reimbursed for the replacement or repair value of damaged or lost goods.
Do non-moving violations affect insurance?
Non-moving violation refers to violation of traffic rules, administrative infractions, and more. Though violation of laws governing these types of activities is directly related to the moving process, it has no direct effect on the insurance.
However, it is extremely important to be aware of the policy coverage limitations, exclusions, terms, and conditions specified in the policy before buying any type of insurance.
Conclusion
To some up, the coverage limits, specific process, and the cost of insurance can vary from one insurance provider to another depending on various factors. Understanding the various types of moving insurance coverage available can help one make a rational and need-based decision.