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Moving insurance is protection or coverage for your household goods or business items while you’re moving. It’s hard to predict what can actually happen to your household goods while they are in transit or at any point during your relocation. This is why buying a moving insurance to cover your high-value items is absolutely important.
If you hire a professional moving company for your relocation, the moving insurance coverage they’ll provide would cover just $0.30-$0.60 per pound depending on whether you’re moving across state lines or within state lines.
This amount leaves a huge gap in coverage compared to buying additional moving insurance that guarantees the actual replacement costs of your items. If you’re wondering what other types of moving insurance are available, we’ve explained each of them in this article.
Types of Moving Insurance
The value of your household goods will determine the type of moving insurance that is best for you. There are four types of moving insurance options you can pick from. While all four options guarantee coverage, their replacements offer are absolutely different. Read on to determine what option is best for you.
1. Basic Carrier Liability
The least type of moving insurance option you can get is the Basic Carrier Liability. This option is the least amount of liability that the moving company you hire must provide free of charge by law when shipping your household goods.
This moving insurance option is also known as the “Released Value Protection” which is limited to $0.30 (intrastate) or $0.60 (interstate) per pound per article. You should ask the moving company you hire about what the minimum liability is for your type of move.
With the basic carrier liability coverage, a 20-pound household good that can cost $1000 to replace such as a home theater set, would only guarantee $6 in replacement for relocation within state lines and $12 for moving across state lines.
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2. Declared Value Protection
This type of moving insurance option guarantees that the amount due to you for damaged or lost items is determined by the depreciated value of the item. With this option, your entire household goods shipment is given a dollar amount (stated by the customer). Also, there is an extra charge of $1.25 multiplied by the weight of your entire shipment.
For instance, if your household goods weigh 10, 000 pounds, your mover is liable for up to $12, 500 only. With the declared value protection plan, the moving company you hire can charge you $7 for each $1,000 of liability. Also, the charge of $70 will be added to your moving cost under additional liability.
With this option, that same 20-pounds home theater set that was mentioned earlier could be liable for full replacement if damaged during the move. This moving insurance option guarantees more protection, though it costs more.
3. Full Replacement Liability
This moving insurance coverage guarantees the replacement cost or repair of any lost or damaged item. The moving company you hire will be responsible for the first part of the coverage which is $0.60 per pound per article. But any cost above that amount is covered by the insurance company to guarantee the replacement costs of your items.
But with this option, you should expect a minimum charge of up to $3.50-$4.50 times the weight of your shipment. Also, full replacement liability insurance comes with a deductible, and you’ll be responsible for that deductible in the event of repair or loss. This deductible cost is similar to other insurance and it ranges from $100, $250 or $500.
4. Extraordinary Value Items
Household goods are considered as extraordinary value goods if they are valued at more than $100 per pound per article.
Moving companies are permitted to limit their liability to articles of extraordinary value so you should let them know if you have any of these items.
These items are often considered as extraordinary value items:
- Currencies/Art collections
- Oriental rugs/furs
- Silver and silverware
- Gems or precious stones
- Video cameras/ Cameras
- Antiques/Crystals
- Computer equipment/software etc.
Once your extraordinary value items are identified, you’d have to complete a High Value Inventory sheet and sign it before you move. If for any reason you’ll have to make a claim for damaged or lost items, your settlement will be limited to the amount you’ve declared for the entire shipment.
But, in the event that you failed to list all items of extraordinary value or failed to sign the inventory sheet, liability is limited to not more than $100 per pound for each article.
Note: Don’t hesitate to inspect your items thoroughly as soon as you unpack. Many insurance policies have a 30-day claim period.
How to choose the right moving insurance
Here’s how to figure out what type of moving insurance option is right for you:
How valuable are your items?
Start by making an inventory or a list of everything you own. You can even make a video using your smartphone. Take note of all existing damage. While this may seem like a rigorous task, this inventory can save you from a lot of costs down the road.
While you’re at it, consider the cost of everything you own. From shoes, to furniture, electronics, dining set and more. What about rare collections and antiques? Put a price tag on what your items are worth and then calculate your moving costs using this free moving cost calculator.
Now consider basic carrier liability moving insurance and full replacement liability moving insurance, which one do you think is right for protecting your items considering their worth.
Figure out if basic liability moving insurance is sufficient for you
For example, if your household items weigh about 20,000 pounds and you opt for the basic liability moving insurance, your moving company will be liable for $12,000 of liability (60 cents multiplied by 10,000 pounds. If your items are worth $12,000 or less, you should stick to the basic liability moving insurance coverage.
Find out if the cost of full replacement value insurance is worth it
For example, if your household items are valued at about $140,000 and $12,000 worth of coverage cannot even replace a quarter of your items, you should consider a full replacement value moving insurance.
However, make sure you’re away from any additional costs attached to getting protection for stuff valued higher than $100 per pound (referred to as items of extraordinary value). Other key things to consider include your moving distance, and the value of items you’re moving.
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