Insurance And Your Move

You should always make sure you have good insurance coverage when you move.

It is always a possibility for accidents to happen even with the most careful people or moving companies.

The following are some tips on making sure your possessions are protected during your move…..

Basic Coverage:

Federal regulations require each moving company to offer 2 different types of coverage for out of state moves.

One coverage is called “released value protection” and the cost of this coverage and $.60 per pound.

What this means is in the case of an accident or damage you will be reimbursed for everything ranging from scissors to family heirlooms at $.60 per pound.

The coverage of this insurance is usually included in the quote given to you by the moving company.

You’re probably thinking to yourself that your valuables worth much more than just $.60 per pound and more than likely they are worth much more than that. This is the reason long distance movers offer a ” full value protection”plan.

This coverage is based on your valuation of your items being transported. The cost of this coverage is 1% of the total valuation so in other words, if you value your contents being transported at $40,000, you would pay $400 for full value protection.

You should always keep in mind that any article valued at more than $100 per pound must be specifically listed on the shipping documents for you to be reimbursed in the case of damage or the article being lost.

Expanded Coverage:

If you haveĀ  a low tolerance for risk, you will probably want to expand and upgrade your coverage. If you decide to do this you have several options open to you.

Ask the moving company if they offer expanded valuations. Expanded valuations are a declared value allowing you to set a per pound value amount for processions. If you decide your belongings are worth six dollars per pound and your shipment is 10,000 pounds, your valuation would be $60,000 on the total shipment. This is the maximum amount you would be reimbursed in the case of the entire shipment being lost or destroyed.

Individual items would be replaced with like-kind items, a three-year-old refrigerator would be replaced with a three-year-old refrigerator. This is an important consideration because some items like used clothes have little to no cash value at all but in this case you could ask your moving company if they offer a lump sum value, which is also called the assessed value. This coverage is basically no different than other coverages except with assessed value, you set your amount by value instead of by weight and this is a much better option if you are have a lot of smaller, higher value items that weigh very little.

What Is Not Covered With Valuation Coverage:

If you opt for valuation coverage you should remember that your movers will not be held responsible for any items placed in boxes that they did not pack themselves and unless the box is showing significant damage on the outside, it is possible that you may not be covered for anything damaged inside the box.

You will also not be covered in the case of a natural disaster, like a fire, rain, hail, etc. You should remember also that any of your items that may become damaged while they are in a storage place that is not managed or controlled by the moving company, you will not be covered.

Other Options To Consider:

There is a good possibility that you may already have some bit of insurance coverage through your homeowners insurance policy, even though it may not be worth very much because most homeowners policies cover your possessions that are in your house and not on the road you decide of a big truck.

You should check with your insurance company and your insurance agent about this.

There are some insurance companies that offer “relocation insurance”and these policies are somewhat similar to the lump sum and declared value coverage policies offered by moving companies.

 

Updated: 1st February 2016 — 2:48 pm

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