Moving Companies Insurance Coverage requirements
Trusting a moving company with your valuable possessions is nerve-racking, so consider the following information as guidance on what insurance coverage your next moving company should be carrying. Accidents and mistakes happen, do your due diligence on the coverage every mover should carry.
Standard Coverage
Any mover is required by law – federal regulations – to provide two types of liability coverage for their clients on non-local moves. First, insurance coverage called released value liability protection coverage. It is standard at $0.61 per pound of goods. This suggests that you will be covered for anything you own that is moved at the 61 cents per pound rate. This policy information should be provided during the quote.
Full-service value liability protection gives moving companies several options if household goods are lost or damaged. This policy coverage is values at 1.1% of the total value of your estimated property. This, if you conclude all of your possessions being moved are worth about $100,000, you would them be required to pay approximately $1,000 in full-coverage value protection. Now, the mover has two options in providing claims on this coverage – they can repair or replace the damaged good(s) at their discretion. Further, replacement value is will value property at fair market and not replacement value. This means if you have a three-year old dryer, then the fair market value will be the reduced price of a dryer that has three years of on it vs a brand new dryer price. Another consideration is that moving companies are not required by law is that high-value items (defined as more than $100/lb) are not required to be covered unless specifically called out in the bill of lading. This applies to high value but low weight items, such as jewelry, art, etc.
Ask moving companies you are getting quotes from it they offer value-based reimbursement options. Remember also, that movers are prohibited by law from selling insurance policies. Conversely, you as the customer, are paying for expressed liability – that is, you set limits on your moving company’s insurance policy if your items are damaged or lost. Also note, that some movers offer valuations expanded beyond normal policy limits. If you declare value, you are setting a per pound limit to your possessions. You also have the options of a lump sum value, also called an assessed value proposition. This is where a moving customer sets value in lump sum vs weight.
Standard Coverage
Any mover is required by law – federal regulations – to provide two types of liability coverage for their clients on non-local moves. First, insurance coverage called released value liability protection coverage. It is standard at $0.61 per pound of goods. This suggests that you will be covered for anything you own that is moved at the 61 cents per pound rate. This policy information should be provided during the quote.
Full-service value liability protection gives moving companies several options if household goods are lost or damaged. This policy coverage is values at 1.1% of the total value of your estimated property. This, if you conclude all of your possessions being moved are worth about $100,000, you would them be required to pay approximately $1,000 in full-coverage value protection. Now, the mover has two options in providing claims on this coverage – they can repair or replace the damaged good(s) at their discretion. Further, replacement value is will value property at fair market and not replacement value. This means if you have a three-year old dryer, then the fair market value will be the reduced price of a dryer that has three years of on it vs a brand new dryer price. Another consideration is that moving companies are not required by law is that high-value items (defined as more than $100/lb) are not required to be covered unless specifically called out in the bill of lading. This applies to high value but low weight items, such as jewelry, art, etc.
Ask moving companies you are getting quotes from it they offer value-based reimbursement options. Remember also, that movers are prohibited by law from selling insurance policies. Conversely, you as the customer, are paying for expressed liability – that is, you set limits on your moving company’s insurance policy if your items are damaged or lost. Also note, that some movers offer valuations expanded beyond normal policy limits. If you declare value, you are setting a per pound limit to your possessions. You also have the options of a lump sum value, also called an assessed value proposition. This is where a moving customer sets value in lump sum vs weight.