No matter how thoroughly you plan, moving can be a risky time for the property you take with you. Of course, you need moving insurance, but how much and what kind? Read on to learn the basics!
Step 1: Itemize what you plan to insure and take photos.
As a rule of thumb, make sure to document your items well, before and after they get packed. Photograph the items you plan to insure during your move so you have proof of their pre-move condition.
Step 2: Choose your coverage.
Before you call in the movers, you’ll want to choose and purchase your moving insurance coverage. When you’ve listed the values of your items, they will help you determine which type of insurance you might need. There are a couple different types of moving insurance typically offered:
1. Valued Inventory: This means that your moving insurance will only cover items that you specifically list to be insured. It’s best to list each item individually – even items that go together. For example, if you have a dining set, list the table and chairs separately. If they are only available as a set, make sure to also get pairs/sets coverage. Also, don’t forget that these items need to be professionally packed for insurance coverage to apply.
2. Lump Sum: When you choose lump sum coverage, the value of your items will be calculated by weight of your shipment x $6, plus any high value items you list separately. So for example, if the weight of your shipment is 500 pounds, your insurance would cover $3,000 (500 x 6). If you listed your big screen TV separately, it would cover $3,000 plus the value you assigned for your television. Please be sure to list any items with a value of $1,000 or more separately, to avoid underinsuring your shipment. As with valued inventory, if you have items that go together, like a dining set, list the items and their values (i.e. table and chairs) separately. If they are only available as a set, make sure to also get pairs/sets coverage.
Step 3: Know the risk involved with packing your own boxes.
Packing your own boxes? The DIY approach seriously limits the scope of your moving insurance. With valued inventory coverage, items must be professionally packed. With lump sum coverage, owner-packed boxed are not covered unless:
a. New cardboard boxes are used (plastic boxes, storage containers, rolling file carts, etc. are not allowed.)
b. The maximum amount allowed in the event of a covered loss per owner-packed cardboard box is $250 and the maximum amount payable for loss or damage to CONTENTS of all damaged cardboard boxes is $2,500.
c. The box has to be noted as damaged upon delivery for insurance to apply. The damage must be written on the Bill of Lading delivery paperwork and signed by all parties, with a photograph of the damaged, sealed box.
d. The same documentation is required if a box is lost and not delivered at all. It must be noted on the delivery paperwork and signed by all parties.
e. In every case, the cause of loss must be specified (such as not delivered or damaged. If the paperwork says “condition unknown” the claim will not be paid.
For more information about self-packed items, you can read our blog post about five things that moving insurance won’t cover.
Step 4: Read your terms of service. Yes, we can hear you groaning, but understanding how it all works up front means you’re better protected and will face fewer surprises later on.
Stay tuned: In our next post, we will cover the ins and outs of moving insurance claim documentation.
