Does Your Home Insurance Plan Covers Damages During Moving?

Posted on: Apr 15, 2024 | 3 mins | Written by: HDFC ERGO Team

Does Your Home Insurance Plan Covers Damages During Moving?

Home insurance policy protects your home by providing financial assistance for property damage, theft, fire, and under other circumstances. Being a homeowner, you should always consider the factor of moving to a different place while buying any home insurance. Knowing your insurance's inclusive and exclusive coverage is necessary to proceed with any home insurance.

Let's answer the burning question: Does home insurance cover moving, and what is its inclusive coverage?

Does your home insurance cover moving?

There are many home insurance policies; all offer different coverages. However, homeowners' insurance plans usually do not cover personal property damage during the move. If the damage occurs due to covered peril, your insurance company will provide its coverage. Covered peril is a list of events that your insurer may cover. They are mainly events like lightning, wind, fire, water, hail, accidents, or theft.

To claim reimbursement for covered peril, you need to know whether your insurance company offers such coverage. While buying a policy, check for this coverage and save your hard-earned money. Furthermore, some insurers provide coverage of a maximum of 10% of your personal property limit against such incidents. However, if damages occur due to improper packing or lack of precautions while shifting the property or items, the insurer will not pay any amount for those damages.

Is there any additional coverage?

The homeowner insurance covers damages against your property. Insurers replace the item or pay you the amount to purchase a new one for the damage. However, such damages must be included under the coverage policy.

Furthermore, home insurance typically does not cover breakage during the move. To avail yourself of such facilities, you can opt for their add-on coverage, such as trip-transit insurance. This insurance covers the lost or broken item coverage during the move. Special peril coverage is for fragile items. Check your insurance policy for this option.

Does homeowners insurance cover damage caused by movers?

Homeowners' insurance doesn't cover damage or theft during moving. If any moving professional is moving your property or items, you won't be allowed any coverage in case of damage. Even if your moving company's truck was interrupted during the transfer and your valuable stuff was stolen, the insurer is not likely to provide any financial assistance for such belongings.

But if you hire a normal driver, and while moving, the driver loses control of the truck, which leads to an accident causing damages to your stuff, the insurer will cover your damages. Under a standard home insurance policy, insurers must cover most personal property during the transit. But such coverage is done by named or covered-peril only. If your covered peril includes conditions for coverage during transit, the insurer will follow those and is likely to provide financial assistance during those situations only.

How do you get moving insurance?

Home insurance policy does not provide moving coverage other than mentioned in a covered peril. However, you can check for add-on coverage when moving from your insurer. Usually, licensed or professional movers have their insurance, and thus, if you hire a company, you should check for the policies they offer while moving. And if you rent any truck for moving, they, too, provide insurance at daily rates. Check for these policies carefully before moving your belongings or opting for insurance policies.

You can always opt for moving insurance from your mover company; its rate will be included in your total transit bill. There are three major types of coverage offered by moving companies:

1. Released value coverage

The insurer pays you at least 60 cents per pound for each damaged or lost item in this coverage option. You can get this movers' insurance coverage when finalising and paying for moving items.

2. Full value coverage

Some movers' insurance companies offer full-value coverage. Check those coverage features and exclusions of your movers' insurance to know their details. However, movers usually reimburse you for lost or damaged items during a move. The value for reimbursement is decided through the market value of the item. This coverage option is better than released value coverage.

3. Separate liability coverage

Such insurance coverage offers complimentary protection against your losses. The value provided by the mover insurance is comparatively higher than the released value. This means that movers will pay you 60 cents per pound for damage, which will also cover the remaining difference in item value. Get a written record of this coverage from your mover insurance company at the time of its purchase.

Types of moving insurance to move by yourself

If you decide to move your belongings in your truck or vehicle, you can opt for a moving insurance coverage option to fill the gap. Here are some standalone insurance plans:

Trip-transit insurance

This insurance covers any damage caused to your possession while moving. Check its exclusions and inclusions before buying.

Rental truck moving coverage

If you rent a truck for moving, your rental company will provide coverage for you and your cargo depending on the distance, possession, fragility, and package you opt for. They offer coverages like cargo protection, medical insurance for you or passengers, accidental damage waivers, etc.

Conclusion

Homeowners insurance offers comprehensive coverage plans, but does home insurance cover moving? They typically do not cover damages caused by movers to your possessions during moving. In some situations like fire or accident, the insurer may cover your losses, but those situations should be as per the covered peril. Such coverage will be only up to the specified limit of the company's insurance policy. However, licensed moving and rental companies also protect your belongings during transit.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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