While moving goods from one place to another during relocations, utmost care
is taken by the customers as well as
moving companies in packing
and moving the items in such a manner that they don't get damaged. However,
there are many uncontrollable factors due to which the goods can get damaged
while moving. In such a situation, it is always beneficial to have some or
the other kind of moving insurance. Many insurance companies provide
insurance products specific to relocations. In fact, there are many moving
insurance companies that deal with moving insurances only.
Types of Moving Insurance Coverage
Most of the insurance providers offer insurance for
residential relocations as well
as commercial or
office relocations.
All Risk Insurance Coverage
All Risk Insurance coverage applies to goods transported or stored by a
full service moving company.
Generally there are two options under this cover:
Full replacement value against valued inventory: A list of each and
every moving item is prepared and their replacement value is declared. The
items which are not listed do not get covered. All items listed are insured
up to the replacement value based on the terms and conditions of the
insurance company. The disadvantage lies only in the fact that if the
customers do not list all of their personal belongings, the entire shipment
is not insured. This type of insurance is normally available for all types
of moves- from
local moving to
international relocations.
Full replacement value in lump sum: The customers simply declare a lump
sum amount which represents total coverage they desire for their shipment.
They can also list some items that are individually valued at a specified
amount mentioned by the insurance company, for example, $500 or higher.
These items are taken as part of the declared lump sum and not calculated as
additional value, as long as the total value they are declared for is not
higher than the total replacement value declared.
Limited Insurance Coverage
This type of coverage applies to goods transported or stored by a full
service moving company as well as during
self
service moving as when hiring truck rentals. Limited coverage
insurance, sometimes called Named Perils insurance, covers only losses due
to the causes explicitly listed in the terms and conditions of the insurance
company. Coverage is available for both the transit period as well as the
storage. Generally, it does not provide coverage to losses occurring at time
of loading or unloading of the insured goods. Here also, two options are
provided by most of the insurance companies:
Selected Inventory Coverage: It provides coverage according to an
itemized and selected inventory made by the customer, prior to the shipment
date. The customer lists and declares a replacement value on all of the
items that are wished to be insured.
Total Value Coverage: It covers the entire shipment. The customer
places a total value on all of his goods to be insured based on which the
total coverage amount is determined. Any items individually valued at
specific amount as per company policy (for example $500 or more) require to
be listed separately so that they may be covered at their specific
replacement value.
Total Loss Only Insurance Coverage
Total Loss Only (TLO) type of insurance provides coverage against a
catastrophe like fire, flood, truck accident, stolen truck, etc., that leads
to total damage or total loss of the shipment. In these types of coverage,
compensation is granted for damages or losses only in case of 100% damage or
loss to the shipment. It does not compensate for any individual items
damaged or lost. It is, in fact, a low cost alternative to the All Risk type
of insurance.
Read
Should I Buy Moving Insurance or Not?
