Moving insurance and valuation coverage
Moving insurance is divided into several categories, each covering a different aspect of the industry. Every moving company is required to have cargo, liability and workers compensation insurance and is also required to provide free valuation coverage of your goods. Free valuation coverage differs from state to state and must appear on the moving company’s bill of lading, which you sign on the day of your move. Moving companies that offer storage must also provide warehouse insurance to protect your goods while in storage.
Cargo insurance covers your goods while they are in transit in cases of automobile accidents or other damage that occurs on the road. Cargo insurance also covers goods that are lost or stolen from the truck while it is en route.
Liability insurance covers any damage that occurs to your home whether in an apartment or a private home and also covers damage to things like street signs, elevators, lawns and driveways. Any damage caused by the movers during
the moving process or by the truck while in transit, is covered by liability insurance.
Workers compensation covers any injuries to employees of the company during the moving process. Be aware that, if a moving company does not offer workers compensation, you can be held responsible for injuries to workers including hospital charges and long term care.
Valuation coverage must be offered by all moving companies. Some companies offer only the minimum coverage required by state laws, while other companies provide you with different coverage options and offer the option of purchasing additional coverage. Most states require moving companies to offer free valuation coverage at the rate of $0.60 per pound, per Article. A few states only require $0.30 per pound or per article and you should check with your state to find out the going rate.
Free valuation coverage is very limited and will be inadequate to reimburse you in the case of extensive damage or loss of your goods. We recommend contacting your home insurance provider and finding out if they offer moving insurance. Many times, home insurance companies are able to offer cheaper valuation coverage than moving companies.
You may also choose to contact an online insurance company that specializes in insuring houses and businesses during the moving process. Coverage rates will vary widely depending on the type and volume of the goods to be insured and which moving company you hire so, make sure to contact several insurance providers to find the best rates.
The last option is to purchase full coverage directly from your moving company. Some moving companies may not offer a wide range of valuation coverage, but most will offer at least one insurance package that provides for full coverage of your property. Most moving companies will not, however, cover extraordinary items such as art collections, antiques, coin collections, oriental rugs, jewelry or silverware. Look into the options provided by your moving company and decide if you need to purchase additional insurance to cover your most expensive items.
Full coverage is often expensive but, if you are moving out of state or preparing to move a large number of expensive or highly valued goods, it may be worth your while.
”A good moving company is not the one that has no record of loss or damage, a good moving company is a company that accepts claims and processes them to the customer’s satisfaction.”
