Archive for the ‘Moving Insurance’ Category

Head to Head: Moving Companies Valuation versus Insurance

Friday, December 12th, 2008

Moving rentals’ insurance and homeowners’ insurance have huge limitations if something gets lost or damaged in a Do-It-Yourself move. But just how wide is moving companies’ protection compared to other sources?

Options from Moving Companies
Valuations are governed by federal requirements. The limited liability or basic carrier liability-release value is free; however, coverage is only the “carrier’s liability” or the “released value” which is usually 30 cents per pound in in-state moves. Interstate moves are around 60 cents per pound per article which will not do much to replace high-value items. Homeowners should sign a releasing document called the Bill of Lading if they choose this.

A more expensive option is the “full-value replacement protection” which will replace, repair or pay for any destroyed, lost or damaged item. Items with values over 100 dollars per pound should be listed in a high-value inventory sheet provided by the moving people.

Insurance/State-Regulated Options
Third party insurance usually covers below 1 percent of the item’s value. Meanwhile, homeowners’ insurance policy covers full or partial costs. However, it is advisable to have a separate moving insurance to avoid any claims from affecting homeowners’ insurance policy.

Other Options
The Declared Value Protection is offered for intrastate moves. The total shipment is covered at a value not exceeding the dollar amount that the client declares to the moving service, or at an amount usually equivalent to 1.25 times the weight. Depreciation costs over the years will also affect the amount of coverage.

In case of damages or loss in interstate moves, a claim can be made within nine months. Homeowners should still pay the movers via cash on delivery or credit. Companies are required to respond, and homeowners may sue for damages if he is not satisfied with the results of arbitration. To prevent incidents like this, check the company’s reputation with the Better Business Bureau first.

Also, remember to check state laws and moving companies’ terms as protection policies may vary.