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Life is unpredictable. Accidents happen, things get lost, even to the most careful and responsible of movers. This is why choosing the right coverage for your belongings during a move is so important. Both moving companies and insurance companies offer customers different solutions which we will review here.
Moving coverage offered by the moving company is referred to as valuation. Moving insurance can be purchased independently or through the moving company from a third party insurance provider. But which kind of moving protection do you need?
In some states, movers are obligated by law to provide a released value/minimum liability coverage for customers moving locally. This valuation is regulated by the Federal Motor Carrier Safety Administration (FMCSA) and covers your belongings at 30-60 cents per pound per article. This might mean a $12 compensation for a flat screen TV, which is why many customers are opting for greater coverage.
Movers may offer more comprehensive coverage for local moves at an additional cost (full valuation) and third party insurance policies can also be purchased independently.
Moving companies carrying out interstate moves are held accountable by federal law for damage or loss incurred while the customer's belongings were in their care. They are required by law to offer at least two protection plans, full valuation and released value/minimum liability coverage.
Full valuation covers up to an agreed amount based on policy, usually with a deductible amount of $250-$500. Different states have different regulations for movers' valuation premiums, and all premiums must be specified in the moving company's Tariff (price chart). In case of any loss or damage, the moving company will compensate you by either replacing the item, repairing it or giving you its market value’s equivalent in cash.
Note that moving companies will only accept liability for items that were packed by their staff. Items packed by owner are in most cases not covered, unless specifically mentioned in the moving agreement. Released value/minimum liability valuation covers as previously mentioned at 30-60 cents per pound per article, and third party insurance is also available.
An overseas move is comprised of several segments:
Depending on your mover, you will be offered different valuation options for the first part of the move. Between departure and arrival port where US laws do not apply it is highly recommended to purchase third party insurance. Typical costs are within 1%-5% of the insurable value. If you are using a professional service or a broker to coordinate your move, they may offer you an insurance package which covers all legs of the trip or connect you with the steamship line and a local provider in your country of destination.
Whether you are moving locally, long distance or internationally, you have the option of purchasing third party moving insurance. In fact, your move may already be covered by your existing homeowner's or renter's policy. Before you purchase moving insurance, check with your insurance professional to see if you are already covered. If you are, choose released value/minimum liability. In case of damage or loss you will not be able to claim the full amount from both providers in any case.
The best way to determine which insurance package to purchase is to carefully examine your inventory's value. Rule of thumb is you will pay 1%-5% of the insured value, so compare prices and terms to find the best deal.