When it comes time to move, you have a lot to consider. One such item is whether or not you should obtain moving insurance. Sometimes, moving insurance is money well spent, other times you can save money by passing. The following will explain more about moving insurance covering the types and worth. This information will hopefully give you a better idea whether or not moving insurance is worthwhile in your situation.
What is Moving Insurance?
Put simply, moving insurance is insurance coverage protecting your obsessions during a move.
Basic Limited Liability Protection: Moving Valuation
This type of moving insurance comes along with a signed contract and is federally regulated. In other words, if you sign a contract with a moving company to transport your possessions, you have this basic coverage. Unfortunately, the value of your belongings and the coverage amount often do not match. The rate of value provided by the moving company is called moving valuation. The valuation amount provided typically begins around $0.30 to $0.60 per lb for local moves or per item or article per long distance move. This type of coverage is not actually moving insurance as valuation only provides replacement or loss for goods damaged within a move, not punitive damages. For this reason and the fact that it often does not provide “enough” coverage for lost or damaged items, many people opt for additional moving coverage.
Additional Moving Insurance
Various moving companies label this type of insurance differently. Some call it Declared Value Protection others label it Full Value Protection (FVP). However it is labeled, it means you are paying an additional amount of money in order to protect your items during transport. Full value protection works like other forms of insurance. There is an amount of coverage provided and most coverage features a deductible. You can determine the amount of coverage you would like and where you what your deductible set. The valuation given to your items will again be based on the items’ weight. If you do not want this and would prefer to instead have your coverage determined on cost of replacement, you can choose Lump Sum Value coverage. With this, you simply insure your items up to a certain amount. Be sure any additional insurance coverage is added to your Bill of Lading agreement with your moving company before allowing them to move one item.
Third Party Insurance Options
If the moving company you choose doesn’t offer additional insurance options like Full Value Protection, you can buy your coverage from a third party. The rates will vary based on which company you use and the amount or value of coverage you need. Be aware, some third party companies will evaluate the moving company’s damage history before providing you will moving coverage. Obviously, if a moving company has had a negative history in terms of accidents and damage claims, you might have to pay a higher rate to be insured if you choose to use them.
As with any type of insurance, moving insurance is something you hope you never have to use. However, having the coverage present can be a life saver if something does occur to your items/possessions during transport or during the loading or unloading process. Ultimately, you have to decide if additional coverage is worth the money. In general, though, the more valuable your possessions, the more seriously you should consider obtaining additional insurance on your move.