Moving Insurance and Valuation
Option 1: Released Valuation
Option 2: Full Value protection
Option 3: Insurance
Option 4: Full Replacement Value - Interstate only (Traveling State-to-State)
Option 1: Basic Valuation Coverage:
(Offered by Fresh Start Moving Services at no additional cost)
Basic Valuation is the minimum coverage under which your goods can be released and is provided by FSMS at no additional cost. The maximum liability for your shipment is established by multiplying the weight by $1.00 per pound per article.
In the event of loss or damage, the total amount the customer will be entitled to recover is $1.00 per pound per item, irrespective of item’s value. Written Binding Estimates provide $1.00 per pound per item valuation.
Example: A dresser weighing 150 lbs:
$1.00 per pound per article: $150
Example: B stereo weighing 10 lbs:
$1.00 per pound per article: $10.00
Option 2: Increased Valuation:
(Offered by Fresh Start Moving Services at an additional cost)
Under Increased Valuation, your mover is liable for the replacement value of lost or damaged goods in your entire shipment. This is the more comprehensive plan available for the protection of your belongings. Unless you select the alternative level of liability described above Released Value your mover will transport your shipment under the Full Value Protection level of liability. If any article is lost, destroyed or damaged while in your mover’s custody, your mover will, at its discretion, offer to do one (1) of the following for each item:
■ Repair the item;
■ Replace with a similar item; or
■ Make a cash settlement for the cost of the repair or the current market replacement value.
Under this option, movers are permitted to limit their liability for loss or damage to articles of extraordinary value, unless you specifically list these articles on the shipping documents. An article of extraordinary value is any item whose value exceeds $100 per pound (i.e., jewelry, silverware, china, furs, antiques, etc.). Ask your mover for a written explanation of this limitation before your move.
Example: 1,000 lb. home @ $6 per lb. = $6,000 Coverage.
(a minimum of $10,000 coverage is applied)
Option 3: Insurance:
The cost of this insurance is not included in the basic move and must be purchased separately by you. This is not valuation coverage governed by Federal law – it is optional insurance regulated by State law.
To purchase an insurance policy through Movinginsurance.com for your move, please click here.
Before purchasing insurance, check your homeowner’s insurance policy to see if you’re already covered.
Option 4: Full Replacement Value
Interstate Only (Traveling State-to-State):
You have two options when you purchase this type of moving insurance:
Full Replacement Value - Valued Inventory
More comprehensive than valuation, this coverage choice generally offers added options (deductible levels, higher coverage, etc.) As the process of initiating this coverage is more involved, it needs to be obtained prior to the actual move day.
This option allows coverage for specific items. For proper coverage, you must list and declare a replacement value on all of the items that you wish to insure. Items may be grouped together, such as clothing and bedroom sets. Please remember in the event that a claim is filed for any of those sets, the settlement amount may reflect the average value of the declared items in that set.
Full Replacement Value - Lump Sum (Available on Interstate shipments only)
The total coverage amount is determined when you, the assured, place a lump sum value on all of your goods to be insured, reflecting a minimum of $6.00 times the total weight of the shipment. Any items individually valued at $500 or more need to be listed separately in order to be covered at their specific replacement value. Items under $500 do not need to be listed to be covered.
Both options utilize the same policy, refer to the same Terms and Conditions and are based on the same rates.
The main difference is that with Full Replacement Value - Valued Inventory, you need to list each and every item that you are moving and need coverage for, and declare the replacement value amount of each item. Items not listed under this option are not covered; however, to fully insure your shipment, you need to list all items being shipped.
With this you can simply declare a lump sum amount, reflecting the total coverage you desire for your shipment. With this option, you only list those items that are individually valued at $500 or higher. These items will be considered as part of the declared lump sum and not calculated as additional value, as long as their total value is not higher than the total Replacement Value declared.
With the Full Replacement Value - Lump Sum option, the declared value must be a value equal to at least $6.00 times the total weight of your shipment. This will prevent your goods from being underinsured.
To purchase an insurance policy for your move, please click here.
Insurance Coverage for your Move
Homeowners or Renters Insurance
Seldom, if ever, will a homeowner insurance policy cover your household goods in transit. If a homeowner policy does provide coverage, it will be on a very limited basis. It may not compensate you for the many types of damage that typically occur in association with a household goods move. It is best to contact your home owner insurance agent to acquire the most accurate information regarding your policy.
Insurance for your goods is referred to as Cargo Insurance. Moving companies carry many forms of insurance coverage, one of them being cargo insurance. What movers offer you is an option to be compensated for any loss or damage to your goods while in transit with them. They are not selling you insurance. They are selling a coverage and accepting a degree of liability in return for a premium paid. Even sales representatives confuse this fact. Only insurance companies sell insurance. The movers ask you if you want to be protected under their policy or not and to what degree.
Do not pack an item classified as dangerous goods. If any damage resulted from a dangerous good, your insurance would be void. You wouldn't even get $0.60 per pound. Ask your moving consultant where your local disposal site is.
Shipment Protection Plans
The public mover offers the following options in the event of damage to your shipment. These options are described in the "Mover's Responsibility for Loss and Damage" section of the brochure entitled "Important Notice to Consumers Using Public Movers and Warehousemen."
What is a deductible?
A deductible is a clause in an insurance policy stating that the insurer will pay that portion of a loss or damage remaining after a stipulated amount, to be paid by the insured party. When you purchase insurance from us, in case of a claim, you are responsible for any loss up to the chosen deductible amount. The insurance company will compensate you, based on the Terms and Conditions, for any amount above your deductible.
What is the deductible on my moving insurance?
In most cases, we offer several levels of deductible: $250, $500, $750, $1,000, $1,500 and $3,000. The deductible you choose determines the cost of the insurance you are seeking to purchase, and is a one-time deductible and NOT per item claimed. Please choose a deductible that best meets your needs. Remember, a higher deductible will reflect a lower cost, and vice versa.
Source: (to read more)