The world of insurance can be a confusing place. We navigate it personally with our auto, home, and health insurance and professionally with property and casualty and workman’s compensation coverage’s. However, the labyrinth of the insurance world does not end there. Insurance is sold to cover new appliances, cell phones, auto maintenance, and travel just to name a few.
Of all of these insurance or protection plans, moving company protection plans are some of the most confusing. The handling, transit, and delivery of people’s personal items are unique on a customer-to-customer basis. For that reason, moving companies use different coverage levels to satisfy the needs of different customers. Hopefully our explanations of moving coverage options will help you to make an informed decision.
Released Value Coverage – The federal government requires moving companies to provide this coverage at no cost to their customers.
Coverage amount = $0.60/lb
What does this mean? If your movers were to break or damage a 20 pound flat screen TV, you would receive $12. If your movers were to break or damage a 200 pound refrigerator, you would receive $120. ($0.60 x weight of broken item.)
Summary – This is a minimal coverage amount that is good for old, heavy items. If you are moving valuable paintings, electronics, or antiques, additional coverage will be needed.
Replacement Value Coverage = An amount requested by the customer
What does this mean? This coverage type is the most comprehensive coverage available. With this coverage, the customer “declares” the replacement value of their items being moved. Actual cash value takes into account depreciation of items.
Summary – This coverage option is the easiest option to enable a customer to select a total coverage amount for their move. In many cases, this coverage amount selected should coordinate with the value of your property under your homeowners/renters insurance. Coverage usually costs around 1% of coverage value.
Several Key Things to Note
- Check with your homeowner/renters insurance provider to see if moving coverage is included in your policy.
- Keep in mind that the moving company has the option to repair damaged items first before providing full replacement
- Items of extraordinary value such as jewelry, cash, collectibles, and artwork should be communicated to the estimator. Extraordinary value items are items that are worth more than $100/lb. For example, a painting that weighs 10 pounds but is worth $2000 costs $200/lb and is therefore considered an extraordinary value item.
- Customer packed boxes are not covered under almost all moving company coverage plans. If you want box contents to be fully covered, either have your movers pack them, or move them yourself.
We hope these explanations and suggestions are helpful. As you navigate the preparation of your move, don’t forget the importance of making sure you are properly covered. As always, our team is standing by to help you with any questions you may have about your move or moving coverage. Whether you are our customer or not, it is our goal to be a moving resource for the communities we service. We hope to have the opportunity to serve you too!