Is Moving Included In Your Home Insurance Policy?

Homeowners insurance applies to both the structure and your belongings, each subject to its own limit. Knowing how a homeowners policy treats belongings in transit is worth understanding before you book a mover.

So, does your homeowner’s policy protect you if you move? Contents are generally covered away from the home only for the causes of loss the policy names, and often at a reduced off-premises limit. That is narrower than most people expect, and it is why a mover’s own coverage matters. Check your declarations page for that limit. When you know what’s covered and what isn’t, you’ll be better prepared for any mishaps that may occur when transporting your belongings from one home to another.

Are my belongings covered by homeowner’s insurance if I move?

Partly, and the limits are the important part. Personal property coverage generally follows your belongings away from the home, including into a storage unit, but usually at a reduced off-premises limit rather than the full contents figure.

The causes of loss it responds to away from home are the same ones it names at home, which is narrower than most people assume.

Are damaged belongings included in home insurance coverage?

To answer your question, yes, but not always. While your personal belongings are usually covered by your home’s insurance, the loss must be due to a covered danger.

More specifically, the damage caused by automobile accidents or lost property isn’t always covered. Personal property is covered on a named perils basis under a standard HO-3 policy, which means it responds only to causes of loss the policy actually lists. In other words, it can cover harm caused by:

• Theft
• Smoke
• Explosions
• Objects that fall
• Ice, snow, or sleet weight
• Eruptions of volcanoes
• Vehicles causing damage
• Damage caused by aircrafts
• Vandalism or malicious mischief
• Water or steam accident
• Systemic freezing in the home
• Damage caused by electrical current that has been created intentionally
• Certain domestic systems are suddenly and unintentionally ripped apart, cracked, burned, or bulged.

Most of these situations are unlikely to occur during a transfer and influence your personal items. Although theft or fire might be an issue, you need to be careful in that case.

What to do after the move

Remember that submitting a claim after moving may have a deadline, so unload as quickly as possible to ensure nothing has been damaged. Make a list of the damage you’ve seen and take images of what you can. This will assist you with your claim.

Inquire with the moving firm about filing a claim for damages. Do not toss out the objects that have been damaged; instead, keep them on standby in case the moving firm needs further proof. If the moving company declines the claim, check with your own insurer whether the loss falls within your policy. To help expedite the claim, include as much information as possible.

Belongings in transit are governed by the same section of the policy as belongings at home, which is property coverage.

What the moving company offers is not insurance

This is the part that catches people, and it is worth understanding before signing the bill of lading.

For an interstate move, federal rules require a mover to offer two levels of valuation. Valuation is a contractual limit on the mover’s liability rather than an insurance policy, and the Federal Motor Carrier Safety Administration is explicit about the difference. A mover that does not hold an insurance licence cannot sell insurance at all.

Released value protection is the default and costs nothing. It caps the mover’s liability at 60 cents per pound, per article. That is item weight, not item value. A 25 pound television is covered for $15 whatever it cost.

Full value protection makes the mover responsible for repair, replacement or cash settlement, and it carries a charge. Federal rules set a minimum valuation of $6 per pound of total shipment weight for it.

Two traps sit inside that. Released value applies automatically unless full value is selected in writing. And items worth more than $100 per pound, which covers most jewellery, fine art and collectibles, must be listed in writing or liability for them can fall back to the 60 cent default even on a full value shipment.

These rules govern interstate moves. Moves within California are regulated separately, so ask which framework applies to yours.

So what actually protects your belongings?

Three separate things, easily confused. Your own policy, which follows your belongings at a reduced limit and only for causes of loss it names. The mover’s valuation, which is a liability cap rather than cover. And third party moving insurance, which is genuine insurance from a licensed insurer, regulated by state law. FMCSA itself suggests checking your homeowners or renter’s insurance before buying the third.

We can tell you what your own policy does while belongings are in transit and where its off-premises limit sits. Call the agency at (818) 322-4744, or request a quote online.

The coverage discussed is general. Your own policy and its endorsements determine what applies to you.

Disclaimer

This article is provided by Schneiderman Insurance Agency for general informational purposes only. It is not legal, tax, financial, claims, or coverage advice. We are licensed insurance professionals, not attorneys, accountants, or financial advisors, and nothing here should be relied on as a substitute for advice from a qualified professional in those fields. This content is general in nature and is not a review of, or a recommendation for, any individual reader’s specific insurance needs, policies, or circumstances. Insurance coverage depends entirely on the specific terms, conditions, endorsements, exclusions, limits, underwriting eligibility, carrier, and facts of each situation, and the actual policy language always controls. We do not guarantee any coverage, pricing, eligibility, underwriting approval, or claim outcome. Reading this article does not create an agent-client relationship. To understand how these issues apply to your situation, please review your own policy and speak with a licensed insurance professional, and consult legal, tax, or financial advisors where appropriate.