Moving Insurance Guide and Helpful Tips

by: MyMovingQuote Editorial Staff
01 Nov 2010

Be sure you actually read these lines so you can accurately put a value on your shipment.
Check with the local Better Business Bureau to get information on how the mover has handled claims in the past, in case that you have loss or damage as a result of your move you have nine months to make a claim however you are still responsible for paying for the move in a timely fashion.

This insurance is covered in the base price and does not cost you any extra money. It is the most economical option available however your goods are covered to no more than 60cents per pound per article. This is the level of coverage for an interstate move. This minimal amount of liability that must be provided to any consumer when transporting goods is called “released value”.

can you guarantee that the goods when you reach the destination will be exactly in the same condition as they were when you started out? There is every chance that the property can be damaged at any point of time i.e., when they are being packed, getting loaded or unloaded from the van or during the transit. Because everything is handled by men, there can be mistakes. Your items might have slipped hands and broke, or while loading something just hit it on a corner and there is a dent and so on and so forth.

The insurance which is provided by the moving company is not just sufficient to cover the full value of items. And therefore it is a must to be adequately covered.

most moving companies cover only a portion of the total value of possessions and you need to take additional insurance protection to get fully covered.

Check in to details how much is covered by the moving company.

Examine the contract and find how will the moving company estimates the value of your possessions.

Determine the maximum liability dollar value of the insurance provided by the mover and the process involved in case you need to place a claim. ( how ever the maximum claim can get discounted due to factors like government regulations, taxes etc)

The insurance available through the mover is based on something called valuation. It simply means the method of determining liability ? by you and the mover. Basically there are three types of valuation

Declared value: this is the simplest of all. You multiply with some number, the weight of the things you move. That is the total weight of the shipment multiplied by a specific amount per pound gives the maximum amount that the mover would be liable. As for example, you are covered at $.6 per pound of weight and your belongings totaled some 10,000 pounds, then the insurer would be liable to the extent of .6 x 10,000 = $ 6,000. note that this value is the maximum amount the mover is liable, the claim is based on the depreciated value of the item (s) damaged.

Lump sum value: an alternative to the declared value based more on value than on weight. You can take for example, per $1000 of value, $50 insurance like that. The amounts, terms vary as per the insurance companies. But to avail this you should know the value of the belongings and declare them in writing on the bill of lading.

Full value protection : this is the comprehensive of all the kinds and covers almost all kinds of loss. It pays for the repair (s) or replacement of the items lost or damaged. Note that there would be a minimum coverage and deductibles (an amount compulsorily deducted from the claim) are applicable.

To understand the difference between full replacement coverage and the actual cash type, assume you have a 5 year old TV. The TV is dropped by the driver and smashed in little pieces. If you have actual cash coverage, the claim department will apply depreciation and pay you the value of a 5 year old TV. If you have full replacement coverage, you will be paid for a new TV.

If a carton is delivered in exactly the same condition as it was picked up and there is damage inside, you will most likely not be covered. The reason being if the carton is properly packed, there should be no damage inside with normal handling. Only when the exterior is damaged and interior too, then you will be covered. This is not the case when the packing is done by the movers themselves in which case you are always covered.

It is better to take photographs of all the items you are moving in order to have the proof of their condition before moving so that in case you need to make a claim, you have proof of the condition too.

This option is often referred to as full replacement value protection. With this plan, any goods lost, damaged or destroyed during the move will be either repaired, replaced or a cash settlement made at the movers discretion.
This is the most comprehensive insurance plan available for the protection of your goods while in transit. Costs vary depending on the mover however by choosing a higher deductible you may be able to reduce the cost. Remember that coverage with deductible reduces the premium however you will be responsible for the first $100.00, $250.00 or $500.00 of loss or repairs depending on the deductible amount. The mover can protect himself from loss or damage to high value items i.e. value of over $100 per pound unless you list these goods on the shipping document. Jewelry and furs are examples of high or extraordinary value items. Talk with your mover so you can get a clear understanding of your options and make more informed choices.

You can have two kinds of liability insurance ? homeowners insurance and transit insurance. Homeowners insurance policies cover about 10 percent of the value of personal property, including coverage for breakage and theft in transit, minus the usual deductible. On the other hand transit insurance should cover the gaps left by other policies. This is important in the sense that it can save you a lot of money and is available through the mover, a move-it-yourself company, or through the home owners insurance company, here we provide you with moving Insurance company such as Baker moving insurance.

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