When do we ever think about insurance? Well when the bill is due and when we need to use it. I am happy the bill comes more often than the having to use it. The “At Peace” feeling you have knowing that no matter what the universe has lined up for you there will be no ripples allowed in your pond. Why ? Because Universe Buddy of mine , I have insurance.
Before you take a look at the insurance options and the meaning of each it is a good idea to make a list of all your significant items. That includes furniture, crystal, china and collections . Next, by each item write the weight of the item. With books you can pack the box and on that box write a number example books 1 , books 2 and so on and put the weight on each box. This system can work for boxed clothing, knickknacks and any other group of items that would be packed together.
On your list add a row for replacement value of each item or box. So now you have the item, pounds and replacement value. When the list is complete just add up the weight and the replacement value.
The value total helps with the decision on what type of coverage you need or want and cost you want to pay for that coverage. The weight total is important as some coverage options will be by the pound.
This list will be a helpful when calling your insurance company and deciding if you need more coverage. Insurance companies also sometimes ask for make and serial numbers off electronic items and purchase date of all items. Some insurance companies have online services for all the items and uploading a picture of the item. Also if you don’t have an existing policy your auto insurance company may have some low cost apartment and home rental insurance options to look at.
Moving on to insurance options:
If you have a homeowner’s insurance policy or renter’s insurance policy it is a good idea to check with them and see if your policy already covers moves. If so ask how much the policy covers. Write that information down. Tell them the value you have from your list if the existing coverage will not be enough for your items those items and ask how much it will cost to increase the policy to cover the move. I know when I make a purchase adding it to the insurance policy isn’t on my mind .
Any additional insurance policy that you already have or will purchase is called third-party insurance – this means that a third party (the insurance company) is insuring your goods against another party (the mover).
What is Valuation?
Full Definition: A valuation charge is another term for moving insurance that is based on the assessed value of your goods. A valuation charge protects your things should they be lost or damaged during a move. The amount that your things are covered vary by company. Make sure you ask your movers how much they insure then decide if you need to purchase more insurance. The first thing you need to know about valuation is that it is not insurance. Most moving companies I’ve hired have always included a valuation charge as part of the overall moving costs. This charge is usually the minimum required to cover a small amount of damage rather than insuring more valuable items or items that might be lost in transit.
The minimum value is often around $0.60 cents a pound. If your household goods weighs in at 1000 pounds, for example, then you can be compensated up to $600.00 for damage or lost items. Since this amount isn’t really a good estimate of what your household goods are valued at, it’s often in your best interest to purchase more insurance than the minimum the company provides.
Most people are moving more expensive items such as computers, large screen televisions and large furniture items such as sofas and dining room sets worth much more than what their weighted value rated at such a low amount per pound. In order to ensure full replacement value on your items, you’ll need to purchase additional insurance. Full coverage is expensive, but if you have high-value items, it may be worth the cost.
So, to know if you’re covered, you need to understand the three types of “valuation” the moving company may provide
Declared value: The value of your possessions is based on the total weight of the shipment multiplied by a specific amount per pound. For example, if the specific amount is $1.50 per pound, and your household goods weigh 15 000 pounds, the mover would be liable for a maximum of $22,500. The settlement is based on the depreciated value of the damaged goods
Lump sum value or Assessed Value: If your household goods do not weigh much, but are valuable, you may need insurance that is based more on cost than weight. This means you can purchase insurance for a specific amount per $1,000 of value. This must be declared in writing on the bill of lading.
Full value protection: This coverage includes lost, damaged and destroyed property. The coverage will pay for the repair or replacement of the goods. Usually there is a minimum coverage amount and applicable deductibles.
Some movers may offer to sell you a transit insurance policy, which helps cover loss or damage to your items, or you may wish to purchase transit insurance separately. Your mover is required to provide you with a copy of the policy and/or any other appropriate evidence of insurance purchased through them. Transit insurance is not regulated by the TxDMV or the Texas Department of Insurance so be sure to read the transit insurance policy carefully and understand the coverage and any deductibles.
Transit Insurance: An insurance policy that covers property in transit during a specific trip, being transported by a certain mode of transport.
Wise Moving Company, LLC offers Two Options of Moving Coverage and it is important for you to understand what they are:
1 – Release Value: 60 cents per Pound per Article
This is the most economical protection available and there is no cost to you. Under this option, Wise Moving Company, LLC assumes liability for no more than 60 cents per pound, per article. Loss or damage claims are settled based on the weight of the article multiplied by 60 cents per pound.
2 – Full Value Protection Coverage
Full Value Protection is declared by you, the customer, in the amount of the carrier’s maximum liability in the event of loss or damage to your goods. In other words, valuation provides a certain level of protection for loss or damage caused by the carrier while your shipment is in the care and custody of the carrier. Wise Moving Company, LLC does not sell insurance.
The standard formula for determining the amount of coverage to purchase is as follows:
Estimated weight x 6.00 per pound = amount of coverage to purchase.
Coverage minimum is $5,000.00 and increase in $5,000.00 increments. Full Value Protection coverage offered by Wise Moving Company, LLC has a $1,000.00 deductible.
For your own protection, you must choose the option which you wish to declare, in writing, prior to Wise Moving Company, LLC loading your shipment on the truck. It is important for you to note that you cannot change your mind about the option you chose once the crew begins loading your shipment. Please refer to our in-house policy for more details, available upon request.