One of the biggest stressors in any move is worrying about the safety of your possessions. After all, you are trusting that that all the things you own that you’re moving are going to arrive at your destination unharmed after being removed from their current location, wrapped, packed, loaded onto the truck, transported, unloaded, delivered and unpacked. That’s a large number of chances for something to go wrong.

That’s why it’s wise to check into what kind of protection your items will have during their move.
This is what brings up the topic of moving insurance, one of the most misunderstood topics in moving.

Insurance vs. Valuation

First of all, what most of us refer to as “moving insurance” isn’t technically “insurance” at all. Instead, it’s what’s called “valuation” coverage, and works a bit differently. Insurance is generally regulated by the states, while valuation coverage promises to reimburse owners for items that were lost or damaged in the move.

Types of Valuation Available
Since lost or damaged items are only covered to the amount of their valuation, it’s important to recognize that the amount of valuation can vary widely.

The major categories are:

• Declared value: This type of valuation coverage is based on the weight of the items being shipped. Most moves within the same state are covered at $30 per 100 pounds, and moves across state lines are covered at $60 per 100 pounds, and comes automatically when using a licensed and bonded moving company. However, you can request higher dollar amounts of coverage per 100 pounds at a higher premium.

• Assessed Value/ Lump Sum Value: Rather than valuing items by their weight, this type of coverage is based on the total dollar amount of the worth of the goods, based on $1,000 of the depreciated value of the goods. One thing that should stand out right away is the fact that unless you are declaring the full replacement value of the goods (which is actually the last type of coverage, Full Value Protection), you are guaranteed to get less than the full value of any possessions lost or damaged during the moving process.

• Full Value Protection: While you might expect that any type of valuation protection would pay to replace any items that were lost, damaged or destroyed during a move, that isn’t the case. Only Full Value Protection will provide that level of protection for possessions involved in your move. It comes as no surprise that this is the most expensive type of valuation coverage because it represents the highest amount of potential liability for the moving company.

Choosing the Right Type of Valuation Coverage

The decision on what type of valuation coverage to purchase for your move comes down to what type of coverage you can afford and how important it is to be able to replace a damaged item from your move. The base valuation coverage under Declared Value is typically provided as part of your overall moving expenses, making it the least expensive, but it is very unlikely to provide the type of coverage you would want if items like computers, big screen TV’s or either items are damaged during your move. Full Value Protection usually provides the highest level of compensation but is the most expensive to buy.
Before you make your final choice, you should also check with your insurance agent about programs that they may offer, either as separate “riders” for existing policies you already have or as standalone policies. This might save you a fair bit of money on your move.

Just follow this easy guide and you’re likely to find the exact type of coverage for your needs.

Here are three more moving resources:

* Please click here to get you FREE Moving Advice and Tips on movers.

* One of our most popular articles is our Change of Address Tips Guide, which includes advice on virtually eliminating “junk mail” and commercial telemarketing calls.

* You can also get regular updates on the latest moving news by going to our Moving Tips Blog.

Good luck with your move!

Popularity: 26% [?]