Types of Moving Insurance
Several different types of moving insurance are available when relocating. The amount of coverage provided varies significantly. Each customer should carefully consider the value of household belongs moved by the company and decided if additional coverage is necessary.
Full Value Coverage
A full value policy covers the actual value of property transported. Of all types of moving insurance, this policy is the most sensible to buy. Property is protected if lost, damaged or destroyed regardless of cause. In most situations, repair cost or replacement cost is used to determine a customer reimbursement. Coverage begins when a moving crew arrives and covers all loss that occurred during the moving process. A policy that limits value artificially is not actually a full value policy even though a few companies may attempt to sell these types of policies.
Released Value Coverage
A released value policy provides reimbursement based on the weight of items shipped. These policies are also known as declared value polices. A pre-determined value per pound is provided in the policy, which in turn, determines the maximum liability accepted. For example, if the value per pound is $1.00 on a load weighing 12,000 pounds, the company may be liable up to $12,000 for total loss. If loss is less than 100%, the company’s liability decreases proportionally. These types of polices are the most affordable and provide the least protection.
Independent Coverage
Homeowners may choose to compare insurance costs available through the company to policies provided by third party insurance providers. In most situations, third-party policies cover losses that exceed released value coverage. Occasionally, a homeowner policy may also cover losses that occur while moving. Of all types of moving insurance, relying on a preexisting homeowner policy may be the most difficult because selling a home may automatically terminate a policy. If relying on homeowner coverage, verify all coverage terms and request confirmation in writing before moving.
Examine Property After Moving
Report any damage that occurs while moving as soon as possible. Customers have up to a maximum of nine months to file insurance claims, but waiting does not serve anyone’s best interest. Understandably, discovering items that may be lost in transit may take months. The company has up to 30 days to acknowledge a claim and up to 120 days to reimburse customers. In practice, an appraiser looks at damaged items and estimates repair costs if practical, or determines replacement value. An appraisal is general complete within a few weeks after receiving a claim.
Tips and Suggestions
Discuss the amount of the deductible before moving. In the most basic sense, all insurance policies are contracts. The company and customers may agree to increase or decrease deductible amounts by agreement. Lower deductibles cost more and higher deductibles cost less.
Consider preparing an inventory of all items moved by the company. For example, numbering boxes with color-coded labels will help movers unload, and help homeowners keep track of their possessions. A separate inventory list may include a description of the contents of each carton.
Before selecting between the types of moving insurance, personally estimate the value of all household items. An inventory list with individually estimated values is particularly helpful when discussing coverage with the company. In this way, all values are known and the amount of coverage necessary is easy to determine.
