I am moving from Texas to Illinois and I have already chosen a mover. My question regards the insurance the mover offers for my move. The mover's estimate includes "sixty cents per pound" insurance and they offer optional "full replacement" insurance which costs an extra $400.00. Should I take the extra insurance? Would you please give me your opinion? Thanks!
Should I purchase extra insurance for my move?
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Thanks for your good…
Thanks for your good question. Let me start my answer by explaining that...while the loss or damage liability offered by moving companies acts much like "insurance"...it is not truly "insurance." Here are the differences between moving company "valuation" and "insurance"...
These differences, and more information is outlined in the many articles you'll find in our Insurance (Valuation) Articles.
Now that we've gotten this out of the way, let me address your question.
You must assess your risk Bill. You are not moving around the corner...rather you are moving over 1,000-miles...so you risk is much greater than a local move. In addition, you should consider catastrophic loss. Most of us by life insurance, although we don't plan on dying anytime soon...rather, we buy it because we are aware that a catastrophic accident may happen and we need to be covered in the event such an accident occurs. With the $0.60 per pound liability, if such an accident occurs to your shipment, you would be reimbursed the weight of your shipment times $0.60. For example, if your shipment weights 8,000-pounds times $0.60 you would be reimbursed $4,800.00 when (in reality) an 8,000-pound shipment has a replacement value of (at least) $40,000.00. Therefore, the $0.60 valuation reimbursement shortfall of $35,200.00 and that is a lot of moola to loose.
So my answer is "yes," by all means go for the extra full replacement value liability. In the end you will probably not need it. However, if you do need it, you will be thankful for the rest of your life.
I should also mention that most movers offer different full replacement value deductible levels and you may want to consider selecting of of these deductible levels to lower the cost of the full value loss or damage valuation.
I hope answers your question. Thanks for visiting Avatar and good luck with your move!
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