Insurance to move? Just like auto insurance or a homeowner insurance policy, moving insurance is a crucial form of protection against any damage to your personal belongings. While many people simply pass on this option believing that nothing will ever happen to their belongings.
Basic Carrier Liability
Basic Carrier Liability is the minimal amount of liability that must be provided to any consumer when transporting goods at no extra charge. Also called the "released value," this insurance policy is limited to 60 cents per pound per article. If you are moving locally, you can consult with the mover in your state on what is the minimal liability for that state. When moving out of state, the minimal liability is assumed to be not greater than 60 cents per pound per article. Under this coverage, if a 10-pound item valued at $1,000 was lost or damaged and you agreed to a released value of shipment, the mover would be liable for no more than $6.00.
Declared Value Protection
This coverage is based on the depreciated value of an item, regardless of current replacement cost. The whole shipment is covered at a value not to exceed the dollar amount that the customer declares and is subject to an additional charge of $1.25 times the weight of your shipment.
With this option, the mover assumes liability for the entire shipment at an amount equal to $1.25 per pound times the weight of your items. For example, if your item weighs 8,000 pounds, the mover will be liable for loss or damage up to $10,000. Though you have made no specific arrangements for this plan, the mover is entitled to charge you $7.00 for each $1,000 of liability. A charge of $70 will be added to your bill for additional liability. Under this arrangement, a 10-pound item valued at $1,000 in your allotted 8,000 pounds could collect the full value if an item that was lost or damaged. Your valuables are somewhat protected, under this plan, but you do pay a sizeable amount for this coverage.
Full Replacement Liability
If your shipment exceeds the liability of $1.25 per pound times the weight of your shipment, you may want to purchase a full replacement liability. This coverage equals the replacement cost or the repair of a damaged item. The mover can sell you or procure for your liability insurance in the amount you require, if you release your shipment for transportation at a value of 60 cents per pound per article. If any damages or loss to your shipment occurred during your move, the mover would be liable for an amount not exceeding 60 cents per pound per article, and the balance of the loss would be recoverable from the insurance company up to the amount of insurance purchased.
Full replacement value coverage is subject to a minimum charge of either $3.50 or $4.00 times the weight of your shipment. You should decide if the minimum coverage is enough to cover your load in case of loss or damages. This coverage may have a deductible. Remember that coverage with deductible reduces the premium; where you will also be responsible for the first $100, $250 or $500 of loss or repairs.
Extra Ordinary Value Items
Movers are permitted to limit their liability for loss or damage to articles of extraordinary value. All items in your moving boxes which are considered to be of extraordinary value must be identified. You must advise your moving agent in writing that they are in your shipment. These items are defined as items having a value greater than $100 per pound per article
It is your responsibility to understand this coverage by obtaining a complete explanation of this limitation before your move. Your mover will provide you with the explanation regarding this liability. However, it is suggested that these valuables should remain in your possession during the move. The mover's representative can advise you further on the availability of such insurance liability and the cost.
If you include items of extraordinary value with your shipment, a High Value Inventory sheet must be completed and signed by you prior to your move. In the event of a claim, any settlement is limited to the valuation you declare for the entire shipment.
You must declare the total amount of released value that you declare for your goods. This total should include the value of items, including all items of extraordinary value. Record the total value on the bill of lading.
Movers insurance isn't all black and white; one policy that may be right for you, may not work for someone else who is moving and vise versa. Although there are numerous rules, there is a policy out there for every one. Hopefully you will now think twice about insuring your belongings on moving day.