Moving insurance is simple right? You hire a moving company, make sure they have insurance, and if they break your stuff, they pay for it. And if nothing happens to your property (knock on wood), that may be all you need to know about moving insurance. But when something does happen, moving insurance becomes a little more complicated. Here’s some information from our South Florida movers on what moving insurance really means, and how you can make sure your belongings are fully protected.
South Florida Movers Don’t Sell Insurance
First of all, a moving company is not an insurance company. Although it may sell its moving services, it does not (and cannot) sell insurance. Instead, moving companies offer what is known as valuation. Valuation functions as insurance, in that it protects your belongings from loss and damage, yet valuations are not covered by federal regulations that apply to other types of insurance. However, for your intents, purposes, and general peace of mind, the terms valuation, and moving insurance are more or less interchangeable.
Two Types of Valuation
Now that you know what valuation is (basically moving insurance, to reiterate), the next thing you should know is that there are two types of valuation: released value protection and full value protection. Here’s a bit from our South Florida movers about what they are, how they work, who should use them, and why you should know about them.
Released Value Protection
Released value protection is the most basic type of valuation, which comes at no cost to the customer. But as the words “most basic” usually imply, released value protection only provides minimal coverage. In this type of valuation, the moving company only assumes liability for 60 cents per pound per article. (Think your 50-pound flat-screen TV for a reference). Forget about filing a claim; when you opt for released value protection, fifty pounds equals $30, no matter how much you paid for the item.
Full Value Protection
Of course, a moving company completely reimbursing you for your damaged or lost belongings is not a complete myth. There is such a thing as full value protection, but unlike released value protection, there is an upfront premium involved. Additionally, many full value policies come with deductibles (we’ll get into those later).
With this type of valuation, you decide what your belongings are worth per pound and pay a premium for that amount of coverage (typically 1% of the total value).
In the case that you need to file a claim under full value protection, your moving company can either:
- Repair the item
- Replace the item with one of a comparable value
- Make a payout for the repair cost or current market value of the item
Yet, while those premiums cover the loss of your furniture, there are still those pesky deductibles to deal with. In many cases, you’ll have to pay anywhere from $250 to $1000 before your moving company comes through. (Thinking that 60 cents/ pound sounds like a good deal right now?)
Add to that the fact that your South Florida movers have the right to limit their liability for high-value items. “Items of extraordinary value” (anything worth more than $100/pound, such as those Christian Louboutins or that Faberge Egg) may not be covered by your full value protection policy. Check with your moving company beforehand to make sure your high-value belongings are covered.
How Do I Know Which Valuation to Choose?
Choosing the valuation that’s right for you may take a bit of consideration, but our South Florida movers are nothing but considerate. That’s why we put together some guidelines that will make the decision as easy as key lime pie.
How Much Are My Belongings Worth?
Why not just do the math? Make a list of everything you own, including important details such as existing damage. As you do so, think about the relative market value of your belongings (as is). Determine the dollar value of your belongings, and then estimate the weight of your household goods by using a weight calculator. Compare the costs and choose the one that makes the most sense.
Is Released Value Sufficient?
Let’s just say you’ve calculated the weight of your household goods at 10,000 pounds. If you choose released coverage, that means that your moving company will take on $6,000 of liability. The question then is whether or not your belongings are equal to or less than 6,000 dollars. If they are, released value protection is the way to go.
Is the Additional Cost of Full Value Protection Worth It?
Now say you’ve just tallied up the value of your household goods, and you’re looking at a figure of about 80,000 dollars. Six thousand dollars won’t be enough to replace your Titleist Golf Club Set. Even if you have to shell out $1000 for the premium and $500 for the deductible, it will be worth it if you’ve got a $1500 flat screen in the truck.
Insured and Licensed South Florida Moving Company
As we pointed out before, a moving company is not an insurance company. It’s not our job to sell insurance, but it is our job to make sure you have the safest and least stressful moving experience possible.
At Moving Squad, we offer insurance because we want our customers to have peace of mind when they hire us. But we know it takes a lot more than a valuation policy to ensure that. We’ve built our reputation on transparent pricing, customized service plans, and experienced South Florida movers that will handle all aspects of your move.
Free Rate Quotes
Our relationships with our customers begin with our free transparent rate quotes. You tell us your budget; and we’ll come up with an expense breakdown so you can see exactly where your costs are coming from. We want you to be comfortable with our pricing so you can feel good about working with us.
Another way our South Florida movers show their love for their customers is by tailoring plans to meet your needs and budget. We offer flexible packing options, storage services, and even our patented express packs to give you end to end support. No matter what your move entails, our friendly, experienced staff will be in constant communication, answering all your questions, addressing your concerns, and making sure your belongings are safe and secure.
At Moving Squad, we hope you never need insurance, but if you do, our South Florida movers want you to know your options. Request our free rate quote today, and feel free to contact us with any questions or concerns about our valuation policies.