Moving Insurance - Movers Valuation
It's important to know the difference between moving insurance and movers' valuation. While you may hear these moving terms used interchangeably, they're not the same thing. Everyone's financial picture is different and different people can handle different levels of the risk of damage or loss to their personal property, but at least if you understand your options you'll be able make good decisions that will help alleviate worry during your California relocation.
A number of different types of protection - valuation options - are offered by California moving companies. Each option provides a different level of payment for damages and loss, so therefore, each also carries a different cost for coverage. Whatever you do, you should not assume that your Homeowners or Renters insurance policy will cover you for the different types of exposure to loss that occur during a move.
There are two main types of occurrences that could take place during your move that would result in financial loss to you. Of course, both types are rare, but still they should be considered.
- Damage, breakage, scratching, etc. that could occur through your mover's actions. Homeowners and Renters policies don't typically cover this type of damage unless the damaged item is specifically named and valued on a personal articles "floater" policy.
- A casualty loss, like fire or theft of your belongings, that could occur while your property was in the possession of your movers, whether the loss was their fault or not. Most Homeowners and Renters policies cover these types of losses but may have restrictions, exclusions, and limitations for "off premises" occurrence and/or limits for specific types of property. Additionally, you could have a substantial deductible you might have to pay yourself. Check your own insurance coverage and talk it over with your insurer and/or your agent ahead of time!
Movers' Valuation
A term that is often used in moving is movers' valuation. Movers' valuation is a predetermined amount of responsibility - a maximum cost per pound that each damaged item weighs or a maximum amount the movers will pay for loss or damage for an entire shipment. The mover's responsibility typically begins when they arrive on your old premises and typically ends when you sign off on your delivery at your new residence. But there are more terms you should be familiar with when it comes to movers' valuation. They are:
- Released Valuation. Generally offered at no cost to you. This type of valuation provides protection at the rate of 60 cents per pound. The mover's responsibility for loss and or damage to your possessions would stop at $6,000. The limit for a single 30-pound item would be $18. For most people moving, this is totally inadequate. Most moving companies don't recommend this level of protection either, for that reason.
- Full Value Protection is available from your moving company at an additional charge. Most moving companies prefer to make this the standard coverage and build it in to your moving estimate and will require you to sign a disclaimer if you don't select this option. Specific amounts per shipment or per pound will be stated, but the per pound limit is not applied to individual items - only to your entire shipment. So, Full Value Protection at $4.00 per pound would result in a $40,000 limit on your entire shipment. There may be limits on specific items that are worth more than $100 per pound, so check the wording in your agreement carefully.
- Declared Value, With this valuation option you select a cost per pound that you think would represent the total value of your shipment. So if you think your 10,000 pound shipment is worth $50,000, you'd specify $5 per pound. Again, the limit doesn't apply per item - only to the total shipment.
- Assessed Value or Lump Sum is based on value and not weight, so if you are moving 40 pieces of art that are worth about $1500 apiece, you'd specify a $60,000 limit for your shipment.
Insurance and Moving
Check with your insurance agent or insurer before you move so you can learn what is and isn't covered under your existing insurance policy. Find out which items are specifically covered, like those items covered under a personal articles floater. See if you can get a rider on your policy for additional coverage during your move. See what's available and find out how much it will cost you, then weigh the benefit - including your peace of mind - against the cost.
You may also be able to find private moving insurance or relocation insurance by doing a web search. Make sure you understand the coverages being offered and are aware of limitations, deductibles and exclusions. If you've never heard o the private insurer before, check them out with the consumers section of the California Department of Insurance as well as the BBB. Insurers are required to be licensed in California.
