Must the Homeowner Purchase Coverage for Their Move?
BY Jamie Furrate
When researching moving companies for your move, there are several variables to consider, such as: 1) What is the reputation of the company 2) Do I have friends or relatives that can provide sound recommendations based on their experience 3) Do I need a white-glove mover, or does a van line more suit my needs? Regardless of the type of moving company you need, the issue of having the proper coverage for your goods must be addressed.
There are generally three options when considering which coverage is right for you. These coverages are: 1) Released Rate Liability-Basic Coverage, 2) Full-Value Coverage-Increased Valuation, and 3) High-Value Move Policy.
Released Rate Liability or Basic Coverage provides the least protection for your goods. Federal regulations allow movers to be released from liability at $0.60/lb. Per article lost, damaged, or destroyed for interstate moves, the states set the rate for intrastate moves (Texas released liability is $0.60 lb.), and this coverage is free of charge.
Full value coverage or Increased Valuation is an increased liability the moving company agrees to accept for a fee. This can be coverage at a higher per-pound limit, with or without a deductible, or coverage for the total value of the shipment, with or without a deductible. If the coverage is for the total value of the shipment, individual items with a value of more than $10,000 must be listed with this coverage. Curtis Specialized Moving & Storage provides Full Value Protection (Valuation Coverage) for 1% of the total declared value ($10 per $1,000) with no deductible. Valuation coverage is not insurance. Moving companies do not have a license to sell insurance.
A High-Value Move Policy is obtained through the mover’s insurance company. This generally happens when the homeowner has items of extraordinary value and collectively exceeds the valuation coverage the moving company can offer at any time. For example, if the homeowner has works of art, statuary, antiquities, etc., with a value in the millions, this would be more than most movers can offer coverage for. A high-value policy would need to be obtained through the mover’s insurance company, which provides increased valuation coverage for an additional fee and is offered to the client by the mover on a one-time basis.
Many people ask, doesn’t the moving company have insurance? Why do I need coverage? As addressed above, state and federal regulations set liability limits for movers if you do not obtain higher liability limits (Valuation Coverage). That liability for interstate moves and moves within Texas is $0.60/lb per article. This provides almost no coverage! Example: If a 50 lb. 4K television is destroyed, and you would be paid $30 on your claim. Some people believe that their homeowner’s policy covers their goods in transit. It would be rare for a homeowners’ policy to provide coverage for all your goods in transit in the care, custody, and control of a 3rd party (the moving company). Please check with your insurance professional before you make a coverage decision that does not provide what you need. You will also want to see the movers’ Certificate of Insurance to ensure they have the proper coverages, including general liability coverage in the event the moving company causes damage to your home and workers’ compensation coverage if an employee of the moving company is injured on your property.