Do you know the difference between moving insurance and valuation? Both insurance and valuation coverage offer reimbursement should your property get lost or damaged during a move. There are important differences between these two coverage choices, however.
Coverage Is Outlined in Your Moving Contract
A moving company is liable for loss or damages they cause to your belongings. Liability amounts are detailed in the moving contract. The amount of reimbursement depends on the type of coverage you choose.
Here’s what you need to know before you decide on coverage that’s right for you.
What Is Valuation?
Valuation is the amount of liability your moving company assumes when it enters into a contract with you. The mover agrees to pay a certain amount, usually based on weight, if your property is damaged or gets lost. Valuation coverage is regulated by Federal law.
How Is Insurance Different From Valuation?
Valuation is coverage a mover can purchase through a moving company. Homeowners insurance sometimes includes moving protection. Contact your insurance agent or check your policy to learn the specifics of your policy.
Two Levels of Valuation
We offer two levels of coverage. The valuation you choose will appear on the bill of lading. Here are the key differences between the levels of coverage.
- Released Value Protection: This protection is included at no additional charge. It is the most affordable option. You don’t pay a premium. You can choose this level of coverage no matter where you’re moving. Coverage is 60 cents per pound per item. For example, if you have a 10-pound lamp that’s damaged in the move, the maximum reimbursement would be $6
- Full Value Protection (FVP): This type coverage is also called replacement cost protection. For this option, we take an inventory of your property. We’ll itemize the items in your shipments, noting the condition before and after transit. Here are the basics:
- You can declare a value for your belongings of $10,000 or higher. Estimate of the value of your property, by referring to your homeowner’s or renter’s insurance.
- Master Movers will weigh your shipment if you’re moving long distance. For local moves, we estimate weight based on the national average of 7 pounds per cubic foot.
- FVP cost is calculated on whichever number is higher: the value you declare or the calculation based on cubic foot. The amount should be calculated at no less than $6 per pound. This is based on 7 pounds per cubic foot.
Valuation coverage is an affordable way to protect your possessions when you move. We work hard to get your belongings safely to your new home. It’s good to know, however, that valuation coverage offers reimbursement in the event of an accident.
Master Movers is happy to answer your questions about valuation coverage. Contact us today!