Valuation vs. Insurance - What’s Really Covered
In the moving industry, the words valuation and insurance are used in a way that can be confusing to the average consumer. Understanding the difference between the two terms will help you get the right coverage for your move.
Valuation is the worth of your shipment to the moving company. The valuation charge is the compensation to the moving company for assuming more liability for your items than what is provided in the base transportation charges. Most moving companies will give you a minimum amount of valuation for your move at no additional cost. This valuation is typically set at 60 cents per pound, which is very low for valuable items such as large screen televisions and computers.
Given the low valuation that is included in a typical moving quote, many consumers choose to add additional valuation coverage based on the weight of the shipment in order to have full replacement coverage for their items. The industry norm for full coverage is $6 per pound for a damaged item. If you had 8,000 pounds in your shipment, you would need to spend $48,000 to have full replacement coverage. You won’t have the option to have full replacement coverage on anything less than your entire shipment.
If your shipment includes items highly valuable items, consider adding more valuation. Full replacement coverage is not an inexpensive option and can easily run from $500-$1,000 for a larger size move. You’ll be purchasing your replacement coverage directly from your van line agent or moving company.
Moving insurance
Alternatively, some moving companies market moving insurance on behalf of insurance carriers. Moving insurance works similar to other types of property coverage and involves paying out a deductible. Deductibles are usually $250 or $500, and then your moving insurance policy would pay out any damage claims above your deductible.
Compare valuation and insurance options on the basis of coverage and cost to determine which one is best for you. Be sure to ask your moving company for all the details on the available options and read all of the contract information to ensure that you understand exactly the type of coverage that you have.
Before you choose to purchase additional valuation coverage or moving insurance, make absolutely sure that your homeowner’s or renter’s policy does not cover the transportation of your household items. Many insurance companies will cover claims for losses from fire or natural disaster when your items are being moved by a professional mover. Most often, these types of policies will not cover your damages if they’re caused by the movers. You should review your particular situation with your insurance agent before finalizing the details with your moving company.
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