Its hard to predict what can actually happen to your household goods while they are in transit or at any point during your relocation. This is why buying a moving insurance to cover your high-valued items is absolutely important.
If you hire a professional moving company for your relocation, the moving insurance coverage they’ll provide would cover just $0.30-$0.60 per pound depending on whether you’re moving across state lines or within state lines. This amount leaves a huge gap in coverage compared to buying additional insurance that guarantees the actual replacement costs of your items.
What moving insurance option is right for you?
The value of your household goods will determine the type of moving insurance that is best for you. There are four types of moving insurance options you can pick from. While all four options guarantee coverage, their replacements offer are absolutely different. Read on to determine what option is best for you.
1. Basic Carrier Liability
The least moving insurance option you can buy is the Basic Carrier Liability. This option is the least amount of liability that the moving company you hire must provide free of charge by law when shipping your household goods.
This insurance option is recognized as the “Released Value” which is limited to $0.30 (intrastate) or $0.60 (interstate) per pound per article. You should ask the moving company you hire on what the minimum liability is for your type of move.
With the basic carrier liability coverage, a 20-pound household good that can cost $1000 to replace such as a home theater set, would only guarantee $6 in replacement for relocation within state lines and $12 for moving across state lines.
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2. Declared Value Protection
This moving insurance option guarantees that the amount due to you for damaged or lost items is determined by the depreciated value of the item. With this option, your entire household goods shipment is given a dollar amount (stated by the customer). Also, there is an extra charge of $1.25 multiplied by the weight of your entire shipment.
For instance, if your household goods weigh 10, 000 pounds, your mover is liable for up to $12, 500 only. With the declared value protection plan, the moving company you hire can charge you $7 for each $1,000 of liability. Also, the charge of $70 will be added to your moving cost under additional liability.
With this option, that same 20-pounds home theater set that was mentioned earlier could be liable for full replacement if damaged during the move. This option guarantees more protection, though it costs more.
3. Full Replacement Liability
This moving insurance coverage guarantees the replacement cost or repair of any lost or damaged item. The moving company you hire will be responsible for the first part of the coverage which is $0.60 per pound per article. But any cost above that amount is covered by the insurance company to guarantee the replacement costs of your items.
But with this option, you should expect a minimum charge of up to $3.50-$4.50 times the weight of your shipment. Also, full replacement liability insurance comes with a deductible, and you’ll be responsible for that deductible in the event of repair or loss. This deductible cost is similar to other insurance and it ranges from $100, $250 or $500.
4. Extraordinary Value Items
Household goods are considered as extraordinary value goods if they are valued at more than $100 per pound per article.
Moving companies are permitted to limit their liability to articles of extraordinary value so you should let them know if you have any of these items.
These items are often considered as extraordinary value items:
- Currencies/Art collections
- Oriental rugs/furs
- Silver and silverware
- Gems or precious stones
- Video cameras/ Cameras
- Computer equipment/software etc.
Once your extraordinary value items are identified, you’d have to complete a High Value Inventory sheet and sign it before you move. If for any reason you’ll have to make a claim for damaged or lost items, your settlement will be limited to the amount you’ve declared for the entire shipment.
But, in the event that you failed to list all items of extraordinary value or failed to sign the inventory sheet, liability is limited to not more than $100 per pound for each article.
Don’t hesitate to inspect your items thoroughly as soon as you unpack. Many insurance policies have a 30-day claim period.
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