When you’re moving to a new state (or across the country), you might be feeling a mix of emotions. On the one hand, there’s the excitement of a new adventure and a new home. But on the other hand, you might have questions about whether your belongings will make it safely to the new place. That’s where getting answers about coverage options can take a HUGE weight off your mind. We’re here to talk about Moving Insurance and valuation coverage, why they matter, and how to get the coverage you need to protect your belongings.
Why Moving Insurance Is Necessary
Hypothetical situation: When the moving truck arrives at your new home and starts unloading, what happens if you notice your flat-screen TV is cracked like Humpty Dumpty? That would NOT be the best start to settling into your new home! Now, a quality moving company would never be careless with your belongings. We know you have enough stress without worrying about your things getting damaged. Moving partners (like us!) prioritize properly packing, loading, storing, handling, and delivering your items.
But it’s an important question: What happens when something gets lost or damaged during the move?
The federal government requires licensed moving companies to protect your belongings during the move. This is called valuation coverage. Let’s dive into what this means.
Types of Movers Insurance
Two levels of coverage licensed moving companies offer.
Released Value Protection
The basic level is called released value protection (also known as “basic carrier liability”).
- Released value protection is usually included as an option at no extra cost.
- The value of an item isn’t fully covered.
- A moving company is required to reimburse damages up to sixty cents per pound, per article.
Let’s say someone dropped your 30-pound speaker and it breaks. Under released value protection, you’d be covered for eighteen dollars (which isn’t much if you paid a hundred dollars a year ago, and now speakers cost more). This is a limitation of this level of coverage — it offers some compensation, but not much.
Full-Value Protection
Licensed moving companies also offer full-value protection (this is different from Moving Insurance). Under this level of protection:
- All items are covered at their current replacement value.
- If something unexpected happens, the moving company will either fix the item, replace it, or compensate you for the item’s current market value (subject to important conditions).
- The dollar amount is calculated by the value of your belongings and the weight of the shipment to determine the mover’s maximum liability.
- High-value items (like a pair of diamond earrings that don’t weigh much) should be documented on a high-value inventory form.
Before the mover begins loading your cargo, you can always “up” your valuation. Full-value protection is more expensive, and (depending on the moving company) there might be a deductible. But for many customers, this level of valuation is worth the cost.
It’s important to distinguish: Valuation isn’t movers insurance. Insurance is a different legal process, with different policy terms. With valuation protection, you don’t have to prove that the mover was negligent — we’re responsible for your claims (with certain limits). Some movers offer additional, third-party insurance on top of the federally-required valuation coverage. The cost and amount of this separate liability coverage varies (depending on the moving company and the state). There are companies like Baker International or MovingInsurance.com who can offer additional coverage when needed. If you have questions about extra insurance, talk with your moving partner. We’re here to answer your questions and make sure you get the service you need.
Key Considerations When Choosing Moving Insurance
When you’re considering your coverage needs, think about what your items are worth.
- Is the item very valuable (either in dollars or sentiment)?
- Are you moving valuables (like antiques or electronics) long distances?
- Do you understand the provider’s policies and terms?
- Are you clear about what’s NOT covered?
- In case you need to later, do you understand the process of filing a claim?
A reliable moving partner can help you understand the details of movers insurance and valuation coverage.
Common Mistakes To Avoid
As a moving partner, we want to make sure your move is as streamlined and low-stress as possible. Here are a few common mistakes you can avoid when you’re considering coverage options:
- Don’t skip the fine print, and make sure you understand what’s actually protected.
- Make sure you have the right level of coverage for your move. Your moving partner can help you understand the options.
- Check out a company’s Google Reviews and reputation. Always be cautious of moving brokers — they don’t handle the move themselves, and they might not properly vet their subcontractors.
- Don’t worry about asking too many questions! Your moving partner is there to make sure you have the answers you need and feel confident in the details.
FAQs
1. What’s the difference between valuation coverage and moving insurance?
Valuation coverage and movers insurance are two different legal transactions with different policy terms. Moving companies offer valuation coverage to compensate customers if something happens to their belongings during the move. Movers often offer base-level released value coverage at no extra charge, and full-value protection at an additional cost. Some movers also offer third-party insurance, so make sure to talk with your moving partner to find out which options they provide.
2. Is valuation coverage enough to protect my belongings during a long distance move?
It can be, but it depends on your specific move. Moving companies offer two levels of valuation coverage and can help you understand which they’d recommend for your unique move. Your moving partner must have the right valuation coverage, experience, and equipment to handle your move.
3. Will my homeowner’s or renter’s insurance cover my belongings during the move?
Maybe, but it depends on your career. Some policies might have you covered, but others might not when it comes to moving. Even if your policy covers your move, talk with your insurance company to know how much is covered and the details. Talking directly with your agent about whether movers insurance is included is best.
4. How do I file a claim if something is damaged or lost during the move?
Contact your moving company immediately if something is damaged or lost during the move. Document and take pictures of the damage (or note what’s missing), and let your move coordinator know. Here at Scobey, our aim is always to make things right. A quality moving partner has policies and will walk you through filing a claim.
5. Can I purchase additional insurance for items that have a higher value?
Absolutely! You can upgrade your coverage at any point before your mover begins loading your shipment onto the truck. For high-value items, you can fill out a High-Value Inventory Form to ensure everything is documented. If you want to look into third-party movers insurance, ask your mover about the available options.
Understanding Your Options, Making Sure You’re Covered
At the end of the day, it’s all about knowing that your moving partner has you covered. We want you to feel confident that your mover has the experience, equipment, and coverage to make your move successful. As you’re considering coverage options, take the time to ask questions and get the information you need. Getting answers before your move means a lot less worry when you’re on the road to your new home! Here at Scobey Moving & Storage, we know it’s not just about moving your belongings — it’s about moving your life. Let’s make sure your moving experience is streamlined and as stress-free as possible.
