What is Moving Insurance?
Moving insurance is often a misunderstood term. While technically there is no such thing as moving insurance, moving companies do offer what is called Valuation instead. Most significantly, the difference between valuation and insurance is that insurance is a contract with an insurance carrier. Valuation is a contact between a customer and the mover. A licensed mover has insurance with an insurance carrier. That insurance rarely comes in to play, unless there is a catastrophe that the mover is unable to resolve because of its magnitude.
Now that we’ve cleared up our terminology a bit, its time show you what Valuation is and how it works. Moving companies must offer two distinct types of valuation to homeowners when moving between states: Released Value Protection and Full Value Protection. Movers may also offer these types of valuation for both local and in-state moves as well.
- Released Value Protection is a basic form of protection for your goods. Moving companies offer this free of charge, but you must make sure to ask for — and agree to — receive this protection or you may not be covered. This type of valuation offers minimal protection for your goods — usually you are covered for about 60 cents per pound per item. This means if you have a 50-pound item worth $500.00 that breaks during the move, you’ll only be covered for $30.00 (assuming 60 cents per pound x 50 pounds.)
- Full value protection is the most comprehensive form of valuation, but you must pay a premium for it. Some full value policies contain deductibles as well. Most moving companies offer their own type of full value policies, so coverage amounts vary between companies. Additionally, some states require a minimum level of protection. When you file a claim under full value protection, the moving company has three options for fulfilling the claim: repair the item, replace with an item of similar value or make a payout for the repair. It’s important to note that under full value protection, there are limits to liability, and additional protection may need to be purchased to cover what are called items of extraordinary value.
There are many more fine details involved in understanding valuation, and this article is meant to help you gain a basic understanding of the concepts. It is important to deal with a licensed, reputable moving company who will work with you and explain in full detail what kind of coverage is available to you.
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