Moving accidents can happen, even if you take multiple preventive measures. This is when moving insurance comes into play. These offer protection for your items that get damaged during a move.
Moving companies cannot sell insurance directly. However, as per federal law, genuine moving companies need to provide valuation options. Many third-party insurance providers can offer you insurance policies.
What are the available insurance options?
Released value protection
Released value protection usually provides you with coverage up to $0.60 per pound for the item. It does not cover the full market value. This insurance option comes standard in moving package
Full-value protection (FVP)
Full-value protection provides you with full coverage on all your inventory. It involves repairing broken items. It replaces broken items as well. It offers a cash settlement as well. It does not cover items of extraordinary value that is more than $100 per pound.
This type of insurance covers damage from natural disasters, such as floods, tornadoes. This insurance covers items of extraordinary value, usually those that are more than $100 per pound. This insurance type supplements value protection valuation.
How to define valuation?
It is true that insurance can cover any damage caused to your items during the move. When it comes to valuation, it can be defined as the amount of liability a moving company takes if your items get damaged during transit. Usually, the coverage undervaluation is pretty limited as compared to that of insurance. In case of valuation, the coverage is the amount that the moving company will reimburse you on your specific item.
Valuation exists in various forms as well. There are two most common forms of valuation, namely, released value protection and full-value protection.
Released value protection
This type of valuation is the most basic coverage protection. It offers bare minimum coverage. Usually, it is included in intrastate moves and interstate moves. When it comes to intrastate moves, this option covers $0.30 per pound per item. For interstate moves, this valuation covers $0.60 per pound per item.
Keep in mind that your items won’t be covered as high as their market value. However, this option will provide you with a huge advantage since it will be included in the cost of your move.
Full-value protection (FVP)
This type of valuation certainly costs extra. After all, it offers more extensive coverage than the basic coverage. However, still, it is not as comprehensive as insurance. Here, moving companies are liable for the current market value of your items. Mainly, it will offer three solutions if they break one of your items while moving. These are:
- Repairing your damaged item
- Replacing your item with similar items
- Offering compensation in the form of cash settlement
Does the valuation cover everything?
The answer is a brief no! Things that take place beyond the control of licensed movers, is not covered by valuation.
There are times when your movers cannot be held liable for the damage to your goods. Some of the common situations are:
- In case you packed your own items all by your own
- In case you did not report lost or damaged items right after the move
- In case you did not specify in writing before a move that an item has great value
- In case you packed dangerous items without informing your mover
Thus, moving insurance can be a better option for most of you. After all, it does not have liability limits on damaged items. Thus, it covers things such as natural disasters and some other unforeseen circumstances.
When it comes to third-party insurance providers, they tend to handle moving insurances for moving companies because moving companies are not really authorized to sell insurance directly. Availing third-party insurance, you can still buy full coverage. However, you can get it only from a different provider.
Prior to getting third-party insurance, you must see if your homeowners or renters insurance policy covers you.
Do you really need moving insurance?
Well, the answer is different in different cases. If your items and goods are highly valuable, go for insurance. Also, if you have to choose between valuation and insurance, go with insurance! However, if you are moving locally, you can just go for a valuation option.
Usually, most home-owners insurance policies do not cover household goods in a move. Most times, their coverage is highly limited. Home-owners insurance policies usually cover your items when movers are packing those items in your home. However, your items won’t be covered in transit.
If the valuation is not enough to provide you with enough peace of mind, go for moving company insurance. However, you will have to get it from a third party since moving companies do not sell it directly.
What is the value of my household items?
You must try to understand the value of your household goods before a move. It comes in handy while preparing for the replacement cost. You must study up on how to perform a home inventory.
At the time of searching for the right moving insurance, make sure to look at the quoted weight of your load that has been given to you by your South Florida Movers. When you have this info, it will be easy for you to gauge the approximate cost of a room. You will have an idea as to what to expect in compensation.
In order to figure out the approximate cost of an item, do a good deal of online research. You can also take photos of your items prior to moving. If required, you might be required to file a claim.
In case you want to protect your items against weather-related damage, just go with third-party insurance.
When you decide to go for valuation, you must go through your contract. Also, if possible, try to look into your bill of lading. This will enable you to find as to what all is included. In short, be mindful at the time of making your choice!