The three main types.
Limited Liability
This is the minimum required by law. It is normally included in the base price of a move. You will receive 30 cents per pound (60 cents for long distance moves) for any lost or damaged items. Although this is better than nothing, 30 cents on the pound is not going to replace a lot. Consider how much your computer weighs. Is 30 cents per pound going to come anywhere close to replacing it? Not likely. If your moving van disappears, the company will often pay the maximum amount of $2,500 and that is it.
Lump Sum Value
This coverage requires you declare how much your goods are worth, then you pay a premium based on that amount. This type of insurance costs you more, but it will actually cover damages and loss. Depending on the premium, you could end up paying an additional $35 for $5,000 worth of coverage. This is well worth the investment should something go terribly wrong. Of course, valuation is not guaranteed. You must be able to show the damage was caused by the mover to get your money.
Full Value Protection This is the top of the line insurance.
This policy guarantees that the moving company will replace any damaged or lost item with a like item or it will pay you a cash settlement for the current market price for replacement, regardless of age or condition of the damaged item. The exact cost for this type of coverage varies from mover to mover. Check around.
Other Places to Check You may already have coverage.
You may also want to check out your homeowner's insurance. Some cover goods in transit. Or you may be able to take out a rider with your current company to cover your move if you property is very valuable.
What Is Not Covered Be sure to check the details.
Items that are packed by you are not covered by the insurance. Since the mover had no way of controlling the packing process if you did it, he or she is not held responsible.
Claims How do they work?
In most cases, you have nine months to file a claim against your mover. However, it is best to call immediately upon discovering the damage or loss. The earlier you call, the easier it is to prove your claim. The mover is legally obligated to acknowledge any claim within 30 days and to resolve it or offer a settlement within 120 days.
But a bad move doesn't let you off the hook.
You are always obligated to pay for the move, regardless of the amount of damage. If you can, work with the moving company to deduct the damages from the amount you owe. If this is not possible, and often isn't because of timing and insurance inspections, pay the mover for the service and pursue reimbursement for the damage.
You're Ready for the Move...
But can you talk to the movers? Here is a handy vocabulary guide.
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