What You Need to Know about Moving Coverage and Insurance for Your Goods
While planning your move there are inherent risks every time your belongings are relocated. Motor vehicle accidents, adverse weather
conditions and human error are just a few of the risks that can potentially cause damage to your household goods. And as much as trained and professional our movers are, accidents do happen. For these reasons, it’s important to consider your moving coverage options while you are planning your move with us.
Generally, there are three types of moves: Intrastate (moving within a state); interstate (moving across state lines); and international. Learn more about intrastate, interstate and international coverage below or proceed to the moving insurance portal.
Coverage for In-State (Intrastate) Moves Including Local Moves
Moving within your state? Since no state borders are crossed, the coverage rules and regulations governing moves are determined by each state, which may be different than federal regulations.
Option 1:
$0.30 (thirty cents) per pound per article valuation. For hourly charged moves, based on the NYS Department of Transportation regulations, your Bill of Lading issued by us provides a “valuation”, at no cost to you, of the greater of (i) thirty cents per pound per article; or (ii) $2,500 for the entire shipment. This is a minimum amount of protection and it does not provide full coverage for your belongings. Having this protection does not exclude the purchase of additional third party insurance.
Option 2:
$0.60 (sixty cents) per pound per article valuation (i.e. Released Valuation). On moves that are based on a fixed price, based on the NYS Department of Transportation regulations, your Bill of Lading provides a “valuation” at no cost to you, of the greater of (i) sixty cents per pound, per article; or (ii) $5,000 for the entire shipment. This is a minimum amount of protection and you should be aware that this may not provide full coverage insurance for your belongings. Having this protection does not exclude the purchase of additional third party insurance.
Option 3:
Full Replacement Value Insurance. For customers who are seeking full protection for their goods while in transit, the best option is a third party insurer. In some instances, your homeowner’s insurance may cover moving from one residence to another, or a portion of it, so please check with your insurance broker. Otherwise, we recommend www.movinginsurance.com. This coverage needs to be obtained prior to the actual move day.
Coverage for Long-Distance (Interstate) Moves
Moving across state lines? The federal government regulates interstate moves. By federal law, interstate moving companies must provide two coverage options to protect your belongings: full value protection or released value. In addition, you may purchase moving insurance from a third party provider such as www.movinginsurance.com. Below are details about each of these three options:
Full value protection
This option protects your entire shipment of goods, requiring us, your moving company, to be liable for any lost or damaged items up to the stated value. If any object is destroyed, the moving company can decide to replace the item using one of three options: repair the item, replace with a similar item, or offer money to replace it at current market value. There is a limit on the replacement value of an item. Any item that is worth more than $100 per pound (jewelry, china, antiques) is considered to have an extraordinary value and will not be completely covered. Ask your moving company for details about insuring extraordinary value items.
Unless you select the released value option below, the full value protection is automatically selected for your belongings. It will cost you, but will provide you some coverage.
Released value
At no additional charge, this plan is the most economical if you only desire minimal protection. For interstate moves, the mover is liable for no more than 60 cents per pound per item. For example, if your mover has destroyed your 10-pound stereo system that is worth $1,000, you would only be compensated $6 (10 pounds x $0.60).
To make the released value plan effective, you must sign a specific statement agreeing to this contract. And remember, if you do not select the released value, the full value protection will be automatically chosen and you will be charged accordingly.
Moving insurance from a third party provider
Another coverage option for both intrastate, interstate and international moves is insurance from an outside company. Federal law does not regulate this insurance; it is optional insurance that is governed by state law. It is also not included in basic moving company-provided coverage and must be purchased separately by you, or in some cases (international moves) by your moving company on your behalf.
For example, if you agree to the released value coverage for your interstate move, you can obtain additional protection from a third party such as www.movinginsurance.com. If your belongings are damaged, and the insurance company will cover your claim, according to the policy terms.
The types of insurance available for each are as follows:
- All risk: This is the most comprehensive insurance that covers the full repair or replacement value of damaged or lost items, with no depreciation. Before the move, a list of all your belongings with their replacement values must be submitted.
- Named Perils: covers only losses which result from catastrophic causes explicitly listed in the Terms and Conditions. Coverage is available for both the transit period as well as the storage.
- Total loss: As a low-cost alternative, coverage is only provided if 100 percent of your belongings are lost or damaged in a catastrophic event, such as fire, flood, stolen truck, sunk vessel, etc. It does not cover any individual items that have been injured during the move.
Insurance for International Moves
International moving insurance, also referred to as marine insurance, marine transit insurance, and marine cargo insurance, is coverage for any overseas or across country border moves. There are several ways to obtain international insurance — directly from a moving company, through a third-party insurance company, by a marine insurance agent or going through the insurance company your employer has chosen.
If you are purchasing international insurance, make sure the company offers a “door-to-door” policy. This means that the company is responsible for your belongs from the time the items are packed into boxes at your old house to the time the articles are delivered to your front door at your new home. If you are planning on packing any of the boxes yourself, check the policy! Some policies don’t cover items that have been packed by somebody other than the movers.
For more information on your moving coverage options, talk to your moving company or visit www.movinginsurance.com.
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