If you have ever used a professional moving service before, you probably are somewhat familiar with the insurance options that are available to you. A good moving consultant will be able to explain the different options you have for insuring your possessions and will be able to explain to you both the advantages and disadvantages of each option. Not every insurance option is right for everyone, so it is important when hiring a professional mover to understand the different options available to you. Remember, no matter how much insurance you do or do not have, it is always a great idea when moving to use proper packing materials.
You have three options regarding insurance coverage when you decide to move with a moving company. They are Full Value Protection, Released Value, or using a Third Party Insurance Company.
Full Value Protection
Full Value Protection is purchased by you, from the moving company you hired to relocate your belongings. If you elect this coverage and suffer a damage or loss, your mover will either repair your item, replace your item with a similar item, or make a cash settlement to either replace the item in full or repair the damage to the item. The cost for this level of protection varies from mover to mover so be sure to ask your moving consultant how much this coverage would cost if you were to hire their company. Most companies have a minimum amount of coverage that must be taken in order to select this option. Always ask if you are not sure.
This is the most basic insurance coverage available for your move and it is automatically included with your move free of charge, unless of course you elect a different insurance option. Please keep in mind that this coverage option is very minimal! With the Released Value option, the mover is liable for your items for no more than 60 cents per pound per item. So let us assume you have an item weighing in at 10 pounds whether it be a jewelry box, a speaker, or an end table. Regardless of what the item is, under this coverage, your mover will reimburse you a maximum 6 dollars for your item. (.60 x 10 pounds)
Third Party Insurance Companies
Third party insurance companies are generally recommended if you wish to have your items fully covered in the case of a damage or loss. Like full value protection, insurance from a third party company also covers your household items in the event of a loss or damage. Rates with insurance companies also vary, and different amounts of coverage come with not only a price to obtain the coverage, but a deductible associated with the quote as well. Eagle Lines moving consultants often recommend using a third part insurance carrier if you elect to have additional insurance coverage because their rates are often less expensive, and they are set up to handle your claim in a fast and efficient manner. Some third party insurance carriers that Eagle Lines recommends are Baker International, and relocationinsurance.com which is an insurance hub featuring multiple insurance companies.
Movers will have their customers elect which insurance they would like to have on the bill of lading, the day of your move. Keep in mind that most third party insurance carriers require you to purchase additional coverage two days prior to your move. Also, there are some items that, regardless of the coverage you have, will not be covered by insurance. Common items that fall under this category are furniture made up of presswood or particle board. Furniture made of this material often falls apart very easily, and depending on its age, will almost always incur damages while being disassembled.
If you wish to learn more about the different options of insurance coverage, visit The Federal Motor Carry Safety Administration's website. .