How does moving insurance work?

Can you please inform me how moving insurance works for full service moving companies?

Thank you for your great question! Let me start off by explaining that moving companies generally do not offer "insurance." Rather, they offer tariff based loss/damage liability which moving companies call "valuation." Although mover's "valuation" functions much the same as insurance it has many distinct differences and it is incorrect to refer to it as "insurance." Here is an article about the difference between valuation and insurance which will help explain the differences to you. Now onto your question!

If you receive a moving cost estimate from a moving company and you ask "does this price include insurance" the mover will most likely say "yes." However, you should ask "what type of insurance?" because the mover has most likely included only the very basic tariff valuation of $0.60 per pound per article which -- if your shipment was to weigh 10,000 pounds (which is a lot of stuff!) -- would provide you with $6,000 should your shipment suffer a catastrophic loss (10,000 pounds x $0.60 = $6,000). You should know that a more realistic replacement value for your 10,000 pound shipment is $60,000.

Therefore, if your shipment experienced a total loss and you had selected the $0.60 per pound per article loss/damage valuation then you may be out up to $54,000 ($54,000 being the $60,000 true replacement value less the $0.60 per pound valuation you selected). Such a loss would harm you greatly.

You should be aware that most movers offer optional full replacement value loss/damage valuation which -- at our company's present rate structure -- would have the following costs for $60,000 of full replacement valuation...

  • $560.00 (with a $0.00 deductible)
  • $392.00 (with a $250.00 deductible)
  • $322.00 (with a $500.00 deductible)

It would certainly be wise of you to ask your mover "what kind of insurance is included in your price" and to inquire as to the additional cost of full replacement value coverage.

At the very least, you should go into your relocation knowing exactly what you are covered for and what your potential loss might be if your shipment experiences a once in a million catastrophic loss.

Further detail may be obtained by reading the article The ABC's of Moving Insurance...or by browsing all of our moving insurance (valuation) articles.

I hope this answered your question and please don't hesitate to ask any other questions you may have! Smiley

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