After you have hired a moving company it is logical to assume any damages or broken items will be covered under their insurance. While there is a portion of responsibility they will assume should damages occur, this coverage is generally less than the actual cost of your goods. On average a moving company will maintain responsibility for 30 to 60 cents per pound per item depending on whether your goods are shipping in or out of state.
Understanding the types of moving insurance available will offer you more protection should anything be damaged or broken during your move.
Declared Value
This is calculated based on total weight of item by the amount paid per pound. Frequently this coverage is $1.25 per pound which means that a 100 pound item would have coverage up to $125. In the instance that damages should occur the insurance rate would be based on the depreciated value of the damaged item up to the maximum value of all shipped items.
Released Value
This is the coverage offered by the moving company, and is up to $0.60 per pound for each article. The same 100 pound item would have a maximum coverage of $60.
Full Value
The protection offered at full value covers all the damages or lost goods by repairing, replacing or reimbursing for them. Above and beyond the declared and released value protection purchasing full value protection from a specialty insurance company.
Valued Inventory
The most comprehensive insurance option available, but also the most intensive, gives you the full value of items broken and full cost of repairs. For this option you must list and declare a value of replacement on all the items you will be insuring. It’s easiest to categorize as a group such as “dining room set, 9 pieces” rather than listing every single item individually.
Lump Sum
Only offered on interstate and international shipments this cost is determined at a lump sum value on all items. This does have its limitations. For instance, the declared value of the shipment must equal no less than $6 times the total shipment weight. Individual items valued above $500 will need to be listed separately in order to receive coverage at their replacement value.
Total Value
This coverage is for an entire shipment and is determined when you place a total value on all your goods. Like in Lump Sum you will need to list separately any items valued above $500. To avoid being under insured you will need to declare a replacement value for your entire shipment.
Selected Inventory
Itemizing selected inventory means listing and declaring a replacement value on all items you wish to cover. Because this is the most comprehensive option it is also the best coverage available. There is no depreciation or co-insurance penalty, and the detailed list can be used as a base for your homeowners insurance at your new home.
Total Loss Only
This will only protect your goods against a catastrophe such as fire, flood, stolen truck, or truck accident. The result must be total damage or loss of the shipment, that is a 100% damage or loss to the shipment. This insurance type will not compensate you for individual items damaged or lost in transit.
Make sure to ask questions of the moving company about what insurances are available and make the decision on whether or not additional coverage will be necessary.
