No one wants to anticipate problems – loss or damage – during a move. However, even the best planned and executed move may encounter difficulties. It is important that you fully understand your mover`s liability in the event that any of your goods are lost or damaged during your move.
What is valuation?
Valuation is NOT insurance. Valuation is the amount of liability a moving company will accept for the value of your goods if damaged or lost while in their possession. Valuation is limited to the moving company’s own coverage, and in many cases is as low as $0.60 per lb. per item.
What is insurance?
Insurance is a system of protection against loss in which an individual agrees to pay a certain sum for a guarantee that they will be compensated under stipulated conditions for any specified loss. It is a contract guaranteeing such protection.
- Insured/Assured: a person whose property is insured against loss.
- Insurer: a company that insures others against loss or damage: underwriter.
Why should I purchase insurance instead of valuation?
There are many reasons to consider insurance instead of valuation:
- In the case of our All Risk insurance type, insurance provides a Full Replacement Value coverage, meaning it will compensate for the replacement value of the damaged or lost item. Valuation will pay the Actual Cash Value of the item, meaning, the depreciated value only. In case of our Total Loss Only type, insurance will compensate the total insured amount, less the deductible. Valuation programs offer limited coverage and will not provide full compensation.
- Insurance will offer protection against “Acts of God” (e.g. floods, tornadoes, lightning strikes, etc.) and will cover you specifically for the items listed on your contract at their replacement cost.
- When buying insurance, you will receive an actual Certificate of Insurance from a leading insurance company as a proof for your coverage, rather than a note on your Bill Of Lading when purchasing the valuation.
- When you purchase valuation, you purchase it from the vendor which provides you with the moving service. By purchasing actual insurance coverage, you are obtaining the service of an independent, third party insurance company.
- Insurance will cover your household goods for a period of up to 90 days (depending on your choice of insurance carrier) while in transit or in storage, including when being hauled by a subcontracted carrier different from your original mover. In addition, you can extend your coverage by purchasing a Storage Extension so your coverage will not lapse while in storage. Valuation does not offer this coverage.
- insurance offers coverage for Mechanical and Electrical Derangement and/or Pairs and Sets. Valuation does not.