Sure, having a little extra insurance can bring peace of mind, but you may not really need additional insurance just because you are moving. You should always weigh your options before signing up for moving ‘insurance’; otherwise you could be wasting time and money. In the relocation industry, consumer-based terminology of insurace is referred to as valuation converage.
The first thing you should understand is that during a move, accidents can happen. This can occur with the best of moving companies, during DIY moves, and everything in between. So, if you want to be sure your things are protected, you’ve got to know what the different types of valuation coverage are.
Before we even get started, just know that almost every moving company automatically provides valuation, not actual moving insurance. Valuation is a limit of liability stated on the bill of lading or moving contract that is determined ahead of time. It comes at no extra cost and has no real connection to the value of your goods. *Individual moves, specifications and coverage vary by region, check with a professioonal mover to see how this may affect your upcoming move.
In order to figure out if you are already covered or need additional moving insurance or valuation, here are the different types of valuation and moving coverage:
- Declared Value – This is the overall value of your stuff based on the total weight of your shipment. The specific amount per pound is to be determined by the local, state and federal government depending on the type of move you have.
- Assessed Value – This must be declared in writing on the bill of lading, but is usually used when your stuff doesn’t weigh a lot but is very valuable.
- Full-Value Coverage – This option will cover loss, damage and destruction of your property. It may also cover the repair and replacement of your stuff.
*Check with your local professional to see if this varies for your move.
So, take a look around your house. Is the basic valuation that the moving company provides going to cover your stuff if anything happens? If not, you may need additional coverage