WHY your Mover needs insurance and HOW it works
Updated: May 15
So what is moving insurance?
Before we get into the specifics, keep in mind that transferring insurance isn't really insurance. Moving firms, on the other hand, have a service known as valuation. Valuation is similar to insurance in that it guarantees that your possessions are compensated in the event of harm or loss. Moving firms, on the other hand, are not licensed to offer insurance and are not subject to the same federal laws as other businesses.
RVP (Released value protection)
The most simple coverage option offered by moving companies is released value security. While moving companies will not charge you for released value insurance, the customer must request it and agree to it in writing.
Released value insurance is provided at no additional cost to you, but it only offers limited coverage. Liability is usually assumed by the moving firm at 60 cents per pound.
This means that if your 50-pound flat screen TV is damaged or lost during your transfer, the mover will only have to compensate you for $30—even if it's a high-end TV worth thousands of dollars. When you have released valuation insurance, products that are lost or damaged will not be replaced or fixed if you file a lawsuit. You'll be paid 60 cents per pound per item instead. There's no way around it.
FVP (Full value protection)
Complete value security is another tool for safeguarding your belongings. This coverage is much more extensive than the published value, but it comes at a cost. Deductibles are also common in maximum value insurance policies.
Selecting full value provisions ensures the moving company is responsible for the full replacement value of the items they are shipping, subject to certain restrictions. As a buyer, you can declare how much you believe your products are worth per pound and then pay a premium to cover that price.
Many movers have their own full value insurance policy, and most would require you to assert a minimum value on your belongings. Furthermore, some states have laws dictating the minimum cost of coverage, which is usually between $4 and $6 per pound on household goods. This means that if you're moving 10,000 pounds and declare a minimum value of $6 per pound on your goods, your household goods will be priced at $60,000 in total. If something in the shipment is missing or destroyed, this is the maximum amount you'll get.
When you make a full value insurance claim, your moving firm has three options for completing the claim:
The object should be repaired.
Replace the object with one of similar value.
Make a payment for the expense of the repair or the item's current market value.
If your 300 pound freezer is damaged beyond repair during a transfer, the moving company's claims department will either replace it with the same (or similar) freezer or pay you according to the item's current market value. In certain cases, however, you would be required to pay a $250-$1,000 deductible before the moving company will honour your petition.
Moving businesses have the right to restrict their liability for high-value products under maximum value insurance. These are referred to as "extraordinary value" objects. A high-value object is usually something worth $100 or more per pound, such as antiques or $1,500 shoes. Before the transfer, make sure you and your moving company are on the same page on when certain things will be moved.
For these high-value goods, most moving companies would offer the option of purchasing extra coverage. The more valuable your possessions are, the higher your premium or deductible would be.
For more questions / concerns please contact your team at Friendly City Movers.
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