If you are thinking about hiring the moving company for your relocation, you probably heard about the moving insurance and that you should really get it. Moving insurance is there to give you a piece of your mind. It is a guarantee that you will get compensation for any damaged or lost items. It’s a form of a backup plan. You probably wouldn’t need it, but it is better to have it. Just in case. Still, there are a lot of things you should know about the moving insurance, and this guide will help you with that.
What is moving insurance?
The first thing that you have to realize is that moving insurance isn’t really an actual insurance. The moving company will offer you something that is called valuation.
The difference in the name comes from the fact that moving companies aren’t certified to sell insurance and aren’t governed by federal regulations that apply to other types of insurance.
It has the same function as insurance – ensure compensation by the movers for your belongings in case of damage or loss.
So valuation has the same function as the insurance, it just needs to be called differently for the legal reasons.
You will recognize the reliable movers by the type of coverage they give you. Great moving companies, like miamimoversforless.com, will provide different types of protection to your stuff. That is why these movers are the best in the business. They will do their best to protect your belongings, and make sure that your shipment arrives at your new home without any damages.
There are different types of valuation
All moving companies have to have two different kind of valuation in its offer, especially if they are conducting the long-distance relocations.
Reputable movers will offer these coverage options whether you are moving locally or long distance.
Released value protection
This is the most basic coverage option that moving companies offer. It goes within the moving costs of the movers, so there’s no additional charge. Be careful – the moving companies that don’t offer this basic coverage are not reliable. The best way to avoid moving scams is not to do business with such movers.
While the released value protection won’t cost you additionally, you should know that it only provides minimal coverage.
To be exact, in most cases that means that moving company assumes liability at only 60 cents per pound per item. No matter what is the true value of the item. That means that if your expensive 50-pound flat screen TV suffers damages during your move, the moving company only have to pay you out $30 in compensation.
The released value protection implies only compensation of 60 cents per pound per item, not replacement or repairing of your items.
Full value protection
Full value protection offers a full value protection of your belongings. For this kind of insurance, you need to pay a premium upfront. However, many full value protection policies have deductibles, so be sure to clear with your movers what they are.
Selecting this kind of protection means your moving company is liable for the full replacement value of the goods they are transporting. You are declaring what you think your goods are worth, per pound. Then you pay a premium for that amount of coverage.
Most moving companies have some sort of minimum value you have to claim on your goods. There are also some states that have a regulation about what the minimum level of coverage is. They are typicaly $4 or $6 per pound per item.
Let’s explain on the example. If the total weight of your belongings is 1000 pounds, and you declare the minimum value on your goods is $6 per pound, the total value of your household will be $6000.
This amount is the maximum that you will receive in the case that your whole shipment is damaged or lost.
When we circle back to your 50-pound TV, if it suffers damages, you will receive compensation of $300. That still can be way lower than its actually worth, but it is so much better than $30 that you will get when to have basic coverage.
In the case of full value protection, the moving company has three options for fulfilling your claim:
- To repair the item
- Replace the item with an item of comparable value
- Pay compensation for the cost of repair or the current market value of the item
High-value item may not be included in your full value protection
When it comes to the high-value items, the moving companies have the right to limit their liability for such items. That include the items that are worth $100+ per pound, like antiques.
That is why you need to be sure that these items are included in the full protection value. Ask your movers about it. If those items are not in the full protection value agreement, the moving company will offer the opportunity to purchase additional coverage for these high-value items.
Third party options
If the valuation that moving company is offering you isn’t sufficient for you, you can buy additional moving insurance from the third party. It all depends on the total worth of your belongings.
Anyways, be sure to check does your homeowners or renters insurance policy. They may cover the protection of your belongings while they’re in transit. The most common case is that they don’t, but no harm in asking. Maybe your policy cover more than you think.
If it doesn’t, consult your insurance agent about the additional moving insurance. It can be tricky when you are moving on a budget, but it can really pay off.
What are the costs of additional moving insurance?
If you get full coverage and decide to purchase additional moving insurance, the price will vary from movers to movers. In most cases, the premium on full value protection is a percentage of the total value of your shipment. If you premium is 1% for the total shipment worth of $50,000, your premium will be $500.
Make sure that you understand all the costs that come with purchasing any form of coverage. Read a contract carefully in order to avoid hidden fees and calculate the cost of your move.
Things to remember when purchasing moving insurance
How you choose to protect your belongings, is totally your decision. Just remember this 5 important things when purchasing the moving insurance from the moving company.
- Moving insurance is not actually insurance, but facts in the same way.
- Released value protection offers only minimal protection, but it has no additional costs.
- Full value protection means that your belongings are fully protected, but requires you to pay an upfront premium.
- Full value protection doesn’t automatically cover high-value items.
- If you have high-value belongings, you will probably have to pay an additional coverage for those items.