Moving insurance is one aspect of relocation that most of the people often overlook. In fact, the best moving companies in the network of iMoving, a platform that plays as an unbiased medium between moving companies and customers, claim that moving insurance is the first thing one must discuss with the moving services provider.
Irrespective of the distance you are moving to, it is imperative that you not only have the assurance that your valuables are safe but also that the company has a backup plan in case there is some damage caused. To make sure you get your facts straight about moving insurance and do not get influenced with the vague information, we have put together this user-friendly guide.
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So, what is moving insurance?
Busting the myth, moving insurance is not really insurance literally. Instead, the moving companies will offer you valuation of your belongings which serves as insurance. Valuation, in simple terms, is the cost estimate of your belongings that the moving company will compensate in case of any damage to the belongings during transition. The Federal laws allow moving companies to sell insurance and there are no governing laws as well.
What are different types of moving insurance or better said ‘valuation’?
There are two key types of valuation that moving companies offer to customers moving across state lines. However, if you partner with a credible moving services provider, you will get the same insurance options for your local and interstate moves too.
Released Value Protection:
Released Value Protection is a basic coverage offered by movers. The best moving companies will not charge a penny for released value protection, however as a consumer, it is your responsibility to discuss the option and mutually agree to the coverage.
It is a minimal coverage insurance and hence it is free of cost. The moving company takes that liability of offering a cover of only 60 cents per pound per article. It means that depending upon the value of the item broken or lost, the company will offer only one cent per pound which means you will get $30 for an item valuing $ 50.
Full Value Protection:
Full value protection is the second option you get to protect your belongings from loss or damage. The consumer needs to pay a premium amount in advance as the service covers much more value than the Release Value Protection option. Moreover, the premium paid for Full Value Protection insurance is tax deductible.
If you choose this valuation, the moving company will be liable to compensate the full value of any damaged or broken item they were transporting. Although there are some limitations, it is a better option.
The consumer has to declare the value of the goods and then pay a premium accordingly.
If you avail the option and then file a claim, there are three ways the moving company can proceed:
- Repair the item
- Replace the good with an item of comparable value
- Make a payout for the cost of repair or the current market value of the item
There is another provision that safeguards the moving companies while offering Full Value Protection. They have the right to limit their liability for items with high value. Such items are technically termed as items of extraordinary value.
Third Party Options:
There is always the option of getting Third party Insurance, especially when we have cleared out that moving insurance really isn’t insurance. Availing such an option is a choice and the net worth of your items must be considered before you finalize the decision. This type of insurance adds to your protection cover and offers you more assurance that you will be compensated for any damage or lost product.
It is very important that you read the terms and conditions of the insurance policy before you sign for it. There are certain clauses that can put you at loss. For example, the clause may state that your items will only be protected when in transit. This means that if the movers accidentally dropped something while loading on the truck or unloading at your new house, you will not be compensated.
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How to choose the right valuation:
It is confusing but can be done easily by considering the following points:
- Know the worth of your belongings
- Use your calculation skills to find out if released value protection would be enough
- Evaluate whether or not the additional cost of full value protection is worth it
When you choose the best moving company, the professionals will help you in determining the right choice. You must discuss your concerns with them and make sure they guide you right. Moving insurance or valuation is important to ensure your valuables are safe during the transit and if in case something goes wrong, you have a right cover for the losses.
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