Your Moving Insurance
You may assume that your goods are automatically covered by your transportation provider, whether it’s a moving company, mobile storage company or a rental truck company. The basic coverage a moving company is responsible for is 30 or 60 cents per pound per item depending if your goods are shipped within the state or across state lines. In the case of a mobile storage or rental truck company, this liability is set as low as 10 cents per pound per item.
Here’s a summary of the types of insurance coverage provided by most moving companies. When interviewing potential moving companies, ask what coverage each provides.
Released Value
Released Value is the basic insurance provided by most moving companies. The coverage of this insurance is 60 cents per pound for each one of your articles. If, for example, you have a table that weighs 100 pounds, the insurance will cover the table up to $60.
Declared Value
Declared Value is the coverage of the declared value insurance based on the total weight of your items times the amount paid per pound. Usually the coverage is $1.25 per pound. If the total weight of your items is 1,000 pounds, the insurance will cover you up to $1,250. In case of damage, the insurance will be based on the depreciated value of the damaged item up to the maximum value of all the items that you shipped.
Full Value Protection
Full Value Protection covers all damaged or lost articles by replacing, repairing or by sending you cash back for the value of the damaged or lost articles. Beyond the general coverage noted above that moving companies provide, you may want to consider buying specific coverage from a company that specializes in moving insurance.
Full service – All risk (They load and drive)
This type of coverage applies to goods transported or stored by a full service moving company, and there are two options to consider.
Valued Inventory
This is the most comprehensive insurance option available and provides the best coverage. This insurance is offered for interstate (moving from state to state), intrastate (moving within the same state) and international shipments. With this option, you must list and declare a replacement value on all of the items that you wish to insure. Items may be categorized as a group, such as “living room set, 7 pieces.”
Lump Sum
This insurance is offered for interstate shipments only (moving from state to state) and for international shipments. The total coverage amount is determined when you place a lump sum value on all of your goods to be insured considering the declared value of the shipment equals no less than $6 times the weight of the shipment. Any items individually valued at $500 or more need to be listed separately in order to be covered at their specific replacement value.
Full service – Named Perils (They load and drive)
This type of coverage applies to goods transported or stored by a full service moving company. Named Perils insurance covers only losses that result from causes explicitly listed in the Terms and Conditions. Coverage is available for both the transit period as well as the storage. Causes of loss for the transit and storage periods can be reviewed in the Terms and Conditions for this insurance type. There are two options within this choice to consider:
Selected Inventory
This provides coverage based on an itemized and selected inventory prepared by the insured prior to the shipment date. For your benefit and for proper coverage, you must list and declare a replacement value on all of the items that you wish to insure. This option is the most comprehensive and is the best coverage available, as it does not reduce the settlement amount for depreciation or a co-insurance penalty. This completed inventory could also act as a base for your homeowners or renters insurance policy at the new location.
Total Value
This offers coverage if you are interested in insuring your entire shipment. The total coverage amount is determined when you place a total value on all of your goods to be insured considering the declared value of the shipment. Any items individually valued at $500 or more need to be listed separately in order to be covered at their specific replacement value. To avoid being underinsured, it is required you declare the replacement value of your entire shipment.
Mobile Storage
Mobile Storage Named Perils insurance covers only losses that result from causes explicitly listed in the Terms and Conditions. Coverage is available for both the transit period as well as the storage. Causes of loss for the transit and storage periods can be reviewed in the Terms and Conditions for this insurance type.
Truck Rental
Truck Rental Named Perils insurance covers only losses that result from causes explicitly listed in the Terms and Conditions. Coverage is available only for the transit period of the move. Coverage is provided only for transported goods and not for damage or loss to the vehicle or its driver and passengers. Causes of loss can be reviewed in the Terms and Conditions for this insurance type.
Total Loss Only (TLO)
TLO is for all move types and is designed to protect your goods only against a catastrophe. This includes fire, flood, truck accident or a stolen truck, resulting in total damage or loss of the shipment. TLO is defined as an insurance type that offers coverage compensating for damages or losses only in case of 100 percent damage or loss to the shipment. This insurance type will not compensate for any individual items damaged or lost.
