Is moving insurance worth the cost?

Is moving insurance worth the cost?

Deciding whether to take out moving insurance involves assessing the value of your possessions against the potential risks of transit. For many, it provides essential peace of mind, protecting against financial loss should something go awry during the move. The term "moving insurance" encompasses various levels of protection, and understanding these is key to making an informed decision.

Understanding Valuation and Coverage Options

Removal companies in the UK typically offer different levels of liability, which are not always full insurance policies. It is important to distinguish between these:

• Standard Liability (Basic Cover): This is often included in the cost of a professional removal service. It is not a comprehensive insurance policy but rather a limited liability for loss or damage based on a predetermined rate, often by weight (e.g., £40-£60 per item or per cubic metre) or a very low monetary value per item. This type of cover is sometimes referred to as Released Value Protection. It typically means the removal company's responsibility is capped at this rate, regardless of the item's actual market value. For instance, a valuable antique cabinet might only be covered for a fraction of its worth.
• Full Value Protection: This is an enhanced level of cover, often offered as an optional extra by professional removal firms or through a third-party insurer. With Full Value Protection, the removal company is liable for the cost of repairing, replacing, or providing a cash settlement for any item lost or damaged at its current market value, up to a declared total value. This provides a much higher level of security but will come at an additional cost.
• Third-Party Moving Insurance: If a removal company's standard offerings do not meet requirements, or for self-moves (e.g., hiring a van), third-party moving insurance can be purchased. These policies are specifically designed to cover goods in transit and often provide comprehensive protection.
• Home Contents Insurance: It is worth checking whether existing home contents insurance provides any cover for goods in transit. Some policies offer limited protection for belongings while they are being moved by professionals, but often exclude items packed by the homeowner or during self-moves.

Factors to Consider When Deciding

The decision to purchase additional moving insurance depends on several key considerations:

• Value of Your Possessions: If you are moving high-value items, such as antique furniture, valuable artwork, sentimental heirlooms, or expensive electronics (e.g., a large flat-screen TV), the cost of repair or replacement without adequate cover could be substantial.
• Fragility of Items: Delicate items, such as glassware, ceramics, or specialty items like a grandfather clock or an aquarium, are at higher risk of damage, even with careful handling.
• Distance and Complexity of the Move: Longer distances, moves involving multiple transhipment points, or challenging access at either property (e.g., flights of stairs, narrow doorways) can increase the likelihood of an incident.
• Who is Packing: Many insurance policies specify that items must be professionally packed for full cover to apply, particularly for delicate goods. If you are doing your own packing, ensure you understand any policy limitations.
• Cost of Insurance vs. Potential Loss: Compare the premium for additional insurance against the maximum potential cost if your most valuable items were damaged or lost. For many, the peace of mind justifies the expense.

Specific Considerations for Man and Van Services

When using a 'man and van' service, it is particularly important to verify their insurance coverage. Many operate with 'Goods in Transit' insurance, which typically covers items for loss or damage while being transported in the vehicle. However, the level of cover can vary significantly, often limited by weight or value, similar to basic liability. It is advisable to ask about the specifics of their 'Goods in Transit' policy and public liability insurance. Understanding what insurance a man and van needs will help clarify what questions to ask.

The Verdict

For most households and businesses, moving insurance is a worthwhile investment. While the vast majority of moves go smoothly, accidents can happen. A misplaced box, a bump to a favourite antique, or unexpected damage to a washing machine (even with transit bolts secured) can be frustrating and costly. Having appropriate insurance means that if the worst does happen, you are not left out of pocket.

Always review the terms and conditions of any cover offered or purchased, paying close attention to deductibles, exclusions, and the claims process. This ensures full understanding of what is protected and any responsibilities on your part, such as declaring accurate values for your belongings.