Insurance Guide

Most insurance coverage that can be obtained through the moving company is limited to the mover's liability and will not completely cover the value of your belongings against loss or damage. It is very important to make sure that your valuable belongings are adequately insured before you move.

When Selecting a Moving Company you must review the moving company's terms for insurance coverage. Determine the extent of liability coverage for items loss or damage your mover will provide. Examine the contract and find a section that addresses the estimated value of your possessions.

Determine the maximum liability dollar value of the insurance provided by the mover and the process involved in case you need to place a claim.  Please note that factors such as government regulations, taxes, and laws limit the actual amount you may be entitled to in case of a claim.  The insurance provided by most moving companies only covers a portion of the total value of your belongings and you will have to get additional insurance to be fully covered.

Insurance Available through Your Mover

Insurance that your moving company will provide you is based on valuation. Basically, valuation is the method of determining liability - by you and your mover. There are three types of valuation:

Declared value

The value of your belongings is based on the total weight of your shipment multiplied by a specific amount per pound (example; $1.25 per pound). For example, if your shipment weigh 10,000 pounds the mover would be liable for up to $12,500. Claim settlement is then based on the depreciated value of the item(s) damaged.

Lump sum value

If you want insurance that is based more on value than on weight you can get insurance for a specific amount (the amount is dependent on the insurance provider) per $1,000 of value. You must know the value of what you are shipping and make a declaration in writing on the bill of lading.

Full value protection

This type of coverage includes lost, damaged, and destroyed shipment. The coverage will pay for the repair or replacement of the item(s). Usually there is a minimum coverage amount and applicable deductibles.

Calculate the amount of insurance you need

Begin with taking into consideration the total weight of what you are moving, the number of rooms you are moving, and the contents of your move.

Create an inventory of all the items you are moving

What you are moving (sofa, dining room set, refrigerator, etc.). Estimate the weight of each item you are moving The value of each item you are moving.

Make sure to have totals that summarize your inventory

Total number of items you are moving. Total weight of the items. Establish the total replacement value of all your property. Take pictures of what you are moving. This is important in establishing the condition of your belongings and it helps in confirming the inventory list.

Homeowners Insurance as a Supplement

Most homeowner insurance policies cover about 10% of the value of your personal property; including coverage for breakage and theft in transit, minus the usual deductible.

Transit Insurance as a Supplement

Transit insurance is another good supplement to the insurance provided by your mover. This coverage can save you a lot of money and is usually available with your moving company, a move-it-your-self company, or with your homeowner's insurance company.

Some Additional Helpful Tips

If you are moving fine art, valuable musical instruments or antiques, you should consider special measures to ensure their safety and protect against their loss or damage. If these items are not covered while in transit by your home policy, you would be advised to purchase additional coverage. In the event that something should happen to your belongings and you have to file a claim, you must do so within (9) months of your delivery date. You should also note the problem on the moving van driver's copy of the bill of lading before signing it. Your mover will then have 30 days to acknowledge receipt of your claim. Within 120 days of receiving your claim, the mover must either deny the claim or make an offer to pay.

Third-party Insurance

If you select Released Value, some movers may also offer to sell or obtain for you separate liability insurance. The cost of this insurance is not included in the basic move and must be purchased separately by you.

This is not valuation coverage governed by Federal law—it is optional insurance regulated by State law. If you purchase this coverage, the mover remains liable for the amount up to 60 cents per pound per article; but the rest of the loss is recoverable from the insurance company up to the amount of insurance you purchased.

Your mover is required to issue the policy or other written record of the purchase and provide you with a copy at the time of purchase.

You also have the option of purchasing insurance from a third-party insurance company. Before purchasing insurance, check your homeowner's insurance policy to see if you're already covered.

If you're moving within your State

Each State may have its own rules and regulations governing moves within the State. Check with your State, county or local consumer affairs agency or State moving association if you're moving to a new location within the same State.

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