Renters insurance covers your items as well as liability for injuries that occur on your premises. It also covers relocation expenses if you are forced out of your rental for some time due to “loss of use” coverage.
Does renters insurance cover relocation damage?
Your goods and furnishings get protected by renters insurance against damage caused by covered events, sometimes known as insurance risks. A hazard is an occurrence that has the potential to harm your possessions. Theft, fire, and storms are all common insurance dangers. Damage during your move is not covered unless an insurance hazard causes it. If you move, your renter’s insurance will only cover you to a certain extent.
According to State Farm, most homeowners’ and renter’s insurance policies do not cover damage to your belongings while in transit during a move. However, there are situations when this coverage would be beneficial to your possessions. Even if the theft of your goods occurred outside of your rental apartment, it is protected. For instance, if someone steals your belongings while you’re loading them into your car, personal property coverage under renters insurance would cover the theft.
Personal property coverage, on the other hand, has some limitations. The average cost of renters insurance for devices is roughly $2,500. Limits on jewellery are usually lower, at $1,500. You should increase your restrictions or seek an add-on rider or endorsement if your electronics or jewellery exceed certain limits.
Suppose you’re renting a truck to move. In that case, State Farm suggests getting rental car insurance through the trucking company, which “protects not just the rental vehicle, but also the driver, passengers, and your cargo, depending on the level of coverage you choose.”
If you employ movers, you need to have moving insurance.
Get moving insurance if you hire movers to protect your goods from damage and loss. According to the Federal Motor Carrier Safety Administration, movers must have minimum liability coverage and “interstate movers must offer two separate liability choices referred known as value coverage” (FMCSA). If you are moving within your state rather than interstate, the laws for moving companies may be different. To find out what rules apply to local movers, the FMCSA recommends contacting your state’s movers associations.
Moving companies are needed by federal law to offer both released and complete value protection (FVP). Some moving companies also provide third-party liability insurance. The most basic coverage is released value, but total value offers comprehensive coverage for your goods during relocation.
For released value coverage, the FMCSA provided the following example: “If your mover lost or damaged a 10-pound stereo component valued at $1,000, you would only receive $6.00 in compensation (60 cents x 10 pounds).” On the other hand, complete value protection ensures that goods are replaceable if lost or destroyed. So, in the $1,000 stereo example above, total value replacement would replace the stereo at $1,000, whereas released value replacement would only offer $6.
The replacement cost or actual cash worth of lost or damaged items depends on your purchase of third-party insurance. The expense of replacing an item with a new or used product is known as replacement cost. The item’s depreciation is factored into the actual cash value (ACV). For example, if a five-year-old leather sofa gets damaged during the move, the actual cash worth is calculated using the furniture’s age. The replacement cost value is frequently lower than the actual cash worth.
Tips on how to move your belongings
- Using a spreadsheet or a video diary, make an inventory list to catalogue your items. If you have lost or damaged something, you can include it in your insurance claim. To aid in creating an inventory list, the FMCSA provides a moving checklist.
- Discuss with the Federal Motor Carrier Safety Administration if a moving company is registered.
- Know the distinctions between an estimate, an order for service, and a bill of lading.
- Signing blank documents is not a good idea. To help you avoid common scams, the FMCSA offers a free moving fraud prevention guide.
|Actual Value||Full value protection||Third-party insurance|
|Inclusion||The mover assumes less than 70 cents per pound for each article.||The mover is responsible for the replacement cost of any lost or damaged items.||Mover is responsible for the first 60 cents per pound per piece, while the insurance company is responsible for the loss balance.|
|Exclusions to coverage||–||Any item worth more than $100 per pound (such as jewellery, silverware, china, furs, antiques)||Consult a third-party insurer.|
|Options for filing a claim||Actual monetary value and replacement value are excluded.||The cost of replacement||Actual cash value or the replacement value|
|Cost||There is no additional cost.||In addition to the expense of moving, and it varies depending on your deductible||Costs paid to a third-party insurer|