Moving Insurance: What Does it Protect?
By Stephen Davis
Special to USInsurance.com
Many people think it is unnecessary to purchase moving insurance. Some people consider it to be an unnecessary additional cost where commonly no major financial loss is frequent. However, you should never move without proper moving insurance. During moving, things get damaged, especially during interstate and international moves.
For most local and intrastate moves, the moving company is only responsible for $0.3 per pound per item. For interstate this is $0.6 per pound per item. If, let’s say, your 40 pound television gets damaged during the move, you will only be paid $12. This is a big loss where televisions cost $300 and above. And if you have a light thin screen… you get even less. There are a number of value protection insurance plans, but the moving companies won’t stress much in them. It is your responsibility to get information about added insurance to protect your items.
If you have high value items like family heirlooms, antiques or works of art, make sure that you purchase a separate high value insurance plan. This is very important as such items are irreplaceable. This will require you to fill a separate high-value inventory sheet before the move. There are also various moving insurance plans for every move - here is a list of some common insurance plans.
Released Valuation: This is the type already mentioned where a moving company gives a compensation of $0.3 per pound per item. This is hugely insufficient a coverage for your goods.
Declared Value: In this method of calculation, the value of the things is based on their total weight multiplied by a specific amount. Let’s say if the amount you agreed on was $3.00 and the total weight of the shipment is 10,000 pounds then the movers will be liable for $30,000. If there is some damage, the claim is settled based on the depreciated value of the damaged item.
Lump Sum Value: This type of insurance is suitable if you need a policy based more on value than on the weight of goods. In this method you can get insurance for a specific amount per $1,000 of value. The owner needs to determine the value of the shipment and make a declaration in the Bill of Lading.
Full Value Protection: This is the best coverage available for your goods. It compensates each good by replacing, repairing or providing full cash reimbursement for its value. However, there is a minimum coverage amount with applicable deductibles. This option is very expensive and needs to be purchased in advance. Hence this is suitable for high-value or precious items like computers or refrigerators.
In addition to these coverage provided by the moving company, extra insurance can be purchased from an independent company for the duration of the move. Most moving companies can assist you in purchasing additional insurance from companies.
Also keep in mind that your renters or homeowners insurance will cover approximately 10 percent of your goods during moving. This includes damages like theft and breakage. Obtaining insurance will make sure that you'll save significant financial loss on your next move.
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