Educating Your Customers about Relocation Insurance

Many consumers decline relocation insurance for one of two reasons: a) they believe it to be an unaffordable luxury purchase; or b) they believe their belongings are fully covered through their homeowners insurance or through the mover's valuation. The common thread between the two reasons is lack of education on the topic. As insurance professionals with strong relocation backgrounds, it is our responsibility to provide the clarity our customers need in order to make well-founded decisions and protect their belongings.

The Cost of Moving Insurance

The truth is, the cost of our All Risk policies tends to stay between just .07% and 1.75% of the declared value of the insured items. Think about that. To cover a $1,000 television during a move, the shipper would typically pay from $70 to $175.00! On a larger scale, an entire shipment with a declared value of $50,000 could cost just $400 to insure.

Homeowners Insurance and Mover's Valuation

Most homeowner’s insurance policies do not cover one's belongings once they've left the home. Homeowners are encouraged to review their existing policies carefully, but unless they have added on relocation coverage specifically, chances are that policy will not cover the value of their items in transit or storage.

Movers' valuation is not the same as insurance and will not cover the full value of one's belongings. Of course most of our readers are well aware of this fact, but it is worth noting if only to remind you all to make sure your customers are well aware of it. All My Sons Moving does a great job of educating their customers on the various coverage options available, and illustrating the differences between valuation coverage and relocation insurance. (Incidentally, AMS carriers consistently rank amongst our top movers!)

Are your customers typically confused about their coverage options? What are some reasons your customers give for declining insurance coverage (if offered)?