Everything You Need to Know About Moving Insurance

There are a few insurance coverage options that your Denver moving company will be able to offer you, and it's up to you to decide what is the best option for you and your move to Denver. So, what are these options and how do they work?

Valuation Coverage

This option is not an actual insurance policy. Valuation coverage is simply the amount of liability your Denver movers are willing to accept—this will be noted in the contract you sign with them. Should any of your items become lost or damaged, each level of liability will determine how much your movers will reimburse you. Again, valuation coverage is simply what your movers are willing to accept liability for and not everything on the moving truck may be covered.

Released Value Protection

By law, this is one of two liability options your mover must offer you if you are making the long-distance move to Denver from another state. As a matter of fact, this coverage option must be offered for any and all moves across state lines throughout the entire United States.

Released Value Protection is always automatically included in your move, no matter what. It is the federal bottom line for all interstate moves. It does not correlate whatsoever to any cost or value of your belongings. No matter what, released value protection must be offered at a minimum of 60 cents per pound for the entire bulk of your belongings. For example, though you may have a 300lb. desk that cost you $1000, your movers will only be liable for $180 minimum if it were to become damaged or lost.

Full Value Protection

This is the second type of coverage that must be offered by an interstate mover by federal law. This level of liability is not mandatory for a customer to purchase, but your Denver movers must offer it to you anyway. Of course, this option will be much more comprehensive than Released Value Protection, but it does not necessarily mean you would get every cent back that you spent on any particular item.

What is meant by Full Value Protection may be explained by its other name, Actual Cash Value Coverage. Essentially, this means that your Denver movers will be liable for the current, possibly depreciated market value of any lost, broken, or otherwise damaged items. For example, if you had bought your TV five years ago for $500, its value depreciated once you got it out of the store, then, over time, it had lost even more value, and may now only be worth $100 in a reasonable market. That $100 is the amount of compensation for which your movers will be liable.

With Full Value Protection, your movers can either repair any damages to the item, replace it with a similar item, or make a cash settlement for the current market replacement value.

There is also a legal loophole in the insurance policies, which notes that movers are not liable for items of “extraordinary value,” which are items which exceed a value of $100 per pound. In the case that you have items of extraordinary value, you must inform your mover of these items explicitly and in writing.

If you are moving items you deem very valuable, it would be in your best interest to purchase Full Value Protection. Consider it wise to speak with your mover about your insurance and liability options before signing-off on your move to Denver!