Should I Purchase Moving Insurance or Select the Valuation Option

If you are preparing for your first move with an rental truck, you are probably wondering if you should purchase moving insurance for your belongings. With the numerous options available it is likely that you have questions about which type is the best for you.

There are two basic ways to protect your belongings. Moving companies in the majority of states are not allowed to directly sell their customers. You can purchase third party moving insurance or you can select one of the valuation options that is provided by your moving company. Let us take a look at the two types and figure out which one is right for you.

Valuation

The most basic and affordable option is called released or declared valuation. If you consult your bill of lading you will typically see a check box for this and is actually offered to you free by your moving company. By selecting this type of valuation your level of protection is equal to this simple calculation: cents per pound per item with the cents amount being predetermined by your moving company. What this means is that they are only liable for $5000 if the total weight of your goods is equal to 10,000 pounds and their predetermined payout amount is equal to $.50.

You can also purchase full value option which will cover the cost of missing items or damage caused during the move, from either (LINK) packing or any other stage. This item is available for purchase at an additional cost from your (LINK) moving company and you may have to pay deductibles up front.

Insurance

You can purchase an insurance policy for your move from a third party provider. You can generally purchase moving insurance up to 2 days before you move but it is best to purchase your policy before you being to pack your belongings. Also keep in mind that insurance policies are only good for a specified time frame so if the date of your move changes you will need to make sure to adjust your insurance policy to reflect that before the movers arrive.

Another thing to check on is the insurance provider’s policy on “packed by owner” or PBO boxes. Most of the time the policy does not apply to boxes unless they were packed by professional movers who are on the insurance companies list of participating moving services. Consider upgrading your move to a full service move if this is something you would like to take advantage of. If your policy does cover PBO boxes read the fine print around it. Most times coverage is only a couple of hundred dollars a box. During the delivery of your belongings if you notice that a box is missing you will need to note this on your inventory list provided by your moving company and have your driver sign as a form of acknowledgement.

Most insurance companies will offer a policy covering a specific number of items. If you are moving a car or expensive artwork this is the type of insurance you will want to invest in because it is value based and not weight based.

If you purchase full value insurance you will need to fill out an itemized list of your possessions and their value. As tedious as this might seem it is actually a very handy list to have. When signing up for your new home owner’s policy you can use the list to make sure all items of value are included coverage. You can also use the list as a checklist for when your belongings get delivered to make sure everything is accounted for!

One alternative is to purchase insurance that only covers your belongings in the event of a complete catastrophe and all of your belongings are either lost or destroyed. This is cheaper in the long run but if the movers deliver your belongings and your couch is torn in half you can not file a claim to recoup your loss.

Like any insurance policy there are deductibles that will need to be met before you can collect money for your claim.