Moving Insurance

You are getting relocated to a new home. You are moving everything to the new premises.  There is every chance for your possessions to get damaged, stolen or even lost in transit. Under the circumstances it is imperative that you insure everything. Now the question arises: how much and what kind of moving insurance you ought to get to ensure the safety of your goods. The answer depends on a few things. What is your budget? How valuable are the things that you wish to be moved? Even the level of your comfort zone should be taken into account.

To begin with insurance policies and liability for interstate moving are not the same. Insurance policies are subject to the insurance laws of a particular state. There are moving companies that provide separate insurance policies in which the insurance carrier pays for certain claims and not the mover. You can choose from a wide choice of moving insurance options and it is better to place a sufficient value on your goods before moving.

Now let us turn to the different levels of liability. There are four of them actually. There is the Released Value or Basic Liability, which does not cost anything extra, but the mover’s liability is limited to no more than 60 cents per pound per article. Another level is called the Declared Value which is the valuation based on total weight of the shipment multiplied by approximately $1.25 per pound. Here claims are calculated on the depreciated value of lost or damaged articles up to the maximum value of the whole shipment. The mover may charge you anything from $7 per $1000 of liability coverage. Then there is the Lump-sum Value, which is akin to the declared value. But here you can bring the total value of the shipment to what you consider accurate. This also will cost you $ 7 or so per $1000 of valuation.

In the fourth level Full Replacement Value, the insurance cover includes repair or replacement with similar items at the prevailing prices. Here there is no depreciation involved at all. Since the cost of this option varies, it is for you decide whether to bring down the cost by paying a deductible. Either you can go for full replacement coverage of all your goods or decide to go for a lesser value, as the danger of the whole shipment being damaged is minimal.

But if you possess highly valuable items like fine art, costly collections like antiques, it is better to go for”high-valued articles” coverage. This tern is referred to any item that costs more than $100 a pound. But be sure to list the value of the items separately in your contract so that the mover’s liability for possible damages is not limited. In this context, it is better to consult your homeowner’s insurance policy because it may cover special items in transit under an “all perils” clause.

Most folk file a small insurance claim instead of a large one.  Interstate moving entails claims being handled through a federal claim and arbitration program. But while moving within a state there are a different set of rules and disputes handled by a state agency connected to the state attorney general’s office.

If you are filing your claim under the federal liability program, it must be for loss or damage within nine months. Make sure that the mover acknowledges the claim with 30 days of its being reported damaged. This problem must be noted on the moving vehicle driver’s copy of the inventory before you sign it. And within 120 days of receiving your claim, the mover can either deny it or pay up.

 

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