If you've hired movers, then you'll need to consider moving insurance and whether you need to purchase more than the moving company provides. While determining how much insurance you might need is complicated, a good place to start is with knowing the basic terms and facts. Here are some definitions of key moving insurance terms and concepts to help get you started.
For more information on moving insurance, check out these articles:
1. Carrier's Liability
Carrier's liability is the liability that the moving company assumes for your household goods. The amounts varies according to the mover. It's important to note that this is not insurance and you should know the difference. Speak to your representative and ask about the conditions under which you're goods are protected.
A statement that indicates the damage or loss of your household goods that occured during the move. It's important to submit your claim as soon as possible to ensure that the missing goods or damage is covered.
3. Declared Value
This is the value you need to declare for the household items you're moving. Your insurance will be based on this amount so make sure you assign proper values to all your goods.
4. Declared Value Protection (DVP)
Declared Value Protection (DVP) is used to determine the value of your goods should movers lose of break items during your move. It's based on the depreciated value, meaning it's current value less the amount it has depreciated over time. This is usually set at $1.25 per pound. Remember to always check to make sure your things are properly insured before you move.
5. Full Replacement Value Coverage
The amount of money per $1,000 of item value you will need to pay to protect your household goods for their full replacement value. Full replacement value is the amount of money it will cost to purchase a replacement for a damaged item regardless of the damaged item's age.
If a deductible is applied, it should be stated in your contract.
Most policies require the entire load be covered, not just specific items. Ask your carrier for terms.
6. High Value
High value is a term used to describe items that are worth approximately $100 per pound. This value may vary. It is important to know which items are considered high value so that you're properly insured. Also, a mover will want to know which items are high value and will ask that you prepare a high value inventory sheet.
7. High Value Inventory Sheet
If you've hired movers instead of moving yourself, and you have household goods that are considered valuable, then the movers will ask you to complete a high value inventory sheet. Items such as original artwork, fine crystal, antiques, etc... are all considered "high value". See the description for high value in the glossary listing.
The purpose of filling out this inventory sheet is to provide the movers with a detailed list of all valuable goods to ensure that they arrive safely at your new home. The mover will want to verify that the items are properly packed and well-marked (boxes should indicate "fragile" or "handle with care"). If a mover isn't satisfied that the item is properly packed, they may refuse to move the item or ask that it be repacked.
You'll fill out the sheet before the items are moved, then they are rechecked upon arrival, after which you'll sign the sheet indicating that the goods were moved without damage.
8. Standard Coverage
By law moving companies must provide a minimum amount of free coverage, and refers to the amount of money you will receive per pound of damaged goods. Typical amount is 60 cents per pound. This coverage is a bare minimum and should not be relied upon to cover you for any significant damage. For example, if you have priceless crystal which weighs 2 pounds, you would be entitled to only $1.20 should the crystal be damaged during the move.
9. Total Loss
Restricted insurance for your household goods based on complete loss of your belongings. Make sure you check the details to ensure your covered.
10. Transit Insurance
This is the insurance that covers your household belongings while they are in transit between your old property and your new one. Check what kind of coverage you have before you move to ensure you're properly insured.
11. Valuation Charge
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.
Remember, valuation charges are usually calculated per pound. Valuation charges may range from 40-80 cents per pound. So when determining if you need extra insurance, figure out how much you'll receive in compensation for your most expensive items.