subject: Moving: Insurance Can Put Your Mind At Ease [print this page] Moving insurance is not a well-known option among those in the process of relocating. Given the large number of complaints to the Better Business Bureau each year regarding these companies, it is economical and beneficial to purchase this type of product; especially for a long-distance displacement. There are many factors involved when considering this type of insurance.
Fabrications
There are many myth's regarding this type of indemnity. Individuals commonly believe that homeowner's insurance will cover damaged and loss during displacements. This is false. It only provides coverage during the packing of goods in your house, not during transport. Additionally the company only makes damage guarantees to a certain extent. The industry standard is around $0.60 per pound which is usually far less than the item is worth. The company also does not reimburse for mother-nature related disasters.
Variations Available
To insure the safety of goods at all steps during the displacement process, a full policy must be purchased. There are two primary policy types:
*Full replacement value - lump sum
*Full replacement value - valued inventory
Full Replacement Value - Lump Sum
This is typically only offered for interstate and international relocation. This type adds the value of all objects together to create a lump sum. The requirement is to declare $8.00 times the total weight of the shipment. Also, items that are worth a high amount should be specifically valued and then declared. Items worth less than $500 do not need to be listed on an inventory list they are simply added to the total weight.
Full Replacement Value - Valued Inventory
This type is available for interstate, intrastate and international displacement. Coverage is based on an itemized inventory list that also contains specific values for specific items. The values assigned to each object are representative of the replacement cost at the destination. The replacement cost is based on the current price of an item today. So if you purchased a couch in 2000 for $300, a similar replacement couch today would be around $800. Therefore the $800 should be used as the value. This option provides the best coverage as depreciation does not have an effect on settlement amount.
Moving insurance is a viable and beneficial option, especially when relocating a great distance with your property in the hands of another. There are two primary policy types with valued inventory being the most comprehensive. The myths are embellishments so it's best to talk to a provider for company-specific details.
by: Abigail Aaronson
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