It is only natural for you to get worried about the safety of your household stuff as you watch them being hauled into your new location. There are things that may happen on the road that can damage your most precious heirloom.
Reducing Your Worries Through Insurance
So, how can you reduce your tension and be able to sleep well tonight knowing that whatever happens, you will be compensated for whatever damage that may happen to your precious possessions?
You guessed it right – by covering your transfer by moving insurance. Yes, just like life or health insurance, you can be compensated for the unforeseen damages that may happen.
Therefore, apart from the expected moving expenses, you also should consider the matter of moving insurance. Insurance coverage for moving purposes includes the following:
1. Basic Coverage
You should know that the federal government requires all moving companies to offer two types of coverage to their clients on out-of-state moves.
The term they use for the first coverage is “Released Value Protection”. It is pegged at 60 cents per pound. Under this coverage, you will be reimbursed for any damage to your belongings at 60 cents per pound.
The moving company should include this coverage in their quote.
2. Full Value Coverage
But since your valuables are worth more than 60 cents a pound, truck movers like Hertz and Lowe’s also offer “Full Value Protection.”
The amount of this insurance is based on your valuation. Therefore, if you put a value on all your properties at $70,000, your coverage will cost around $700.
If any of your articles are lost or damaged during the move, the trucker is allowed to choose from two options that the government allows him to. He can either pay you the corresponding amount or he can replace the item.
It is your trucker, not you, who will decide how the amends will be made.
Caveat Used by Moving Companies
Moving companies usually resort to a caveat: they are not required to compensate you for any item that has a value of more than $100 per pound. That is, unless you have specifically listed its amount on your shipping documents.
The Surface Transportation Board is the federal organization that has determined this amount. It is the government agency that oversees truck renters and haulers.
Therefore, if you want to get the right compensation, you must list everything that has a value of more than $100 per pound and include them on the shipping documents.
Coverage Exemptions
You also need to understand that there are certain things that will not be covered by moving insurance. Among these things are:
- Items that they did not pack
- Damage on your items due to natural disasters such as hurricanes, windstorm, fire, hail, tornado and so forth.
- Damage on your items during storage which is not under the control of the moving company.
In addition, unless the box does not show significant damage incurred during the move, you will not be reimbursed on your damaged items.
Additional Moving Insurance Coverage
You can also upgrade the insurance coverage given by moving company if your risk tolerance is low. Here are some of the available options:
- Insurance coverage based on declared value
This coverage allows you to set a per-pound value on your belongings. For instance, if you estimated that your items are worth $5 per pound, and the total weight of your belongings is 5,000 pounds, the total valuation of all your shipment is $25,000.
- Assed value or lump sum value coverage
This coverage is almost the same as the above, only that you will set the amount by value instead of the weight of the item. Assed value coverage is preferred if you have smaller and lighter, but highly valuable items that you need to transport
Explore Your Other Options
More than likely, you already have some insurance protection if you have a homeowner’s policy. However, the extent of its coverage will usually not be worth that much. In addition, this policy covers your belongings while they are inside your house, not while they are in transport.
So, it would be good if you could check with your insurance company or insurance agent in this regard. Generally, the coverage will only be about 10 per cent of the value of the items while they are temporarily out of your house.
You can also ask the insurance company if it offers some type of moving insurance along with the present insurance coverage you are now holding.
Some insurance companies have a tack in their insurance policies which is called “relocation insurance.” It could be offered by your insurance company as a separate policy.
Such moving insurance are similar to lump sum coverage that most moving companies are offering. If your moving company does not offer this kind of coverage, you could get it from your home insurance company.
