BY PEGGY HUGHES
Are you properly insured during your move? One of the most confusing issues anyone using a moving company to move their household goods is Movers’ Insurance. I am going to try to explain it to you. (Please note: contact your Insurance Broker a few weeks before your move date to find out if you need Movers’ Insurance in the first place!!!)
There are usually three types of coverage offered to a homeowner, whether they are moving Coast to Coast, or locally. And local means your City…. be it New York, Los Angeles, San Francisco, Chicago, or anywhere in between in the United States. Canada and Mexico, Europe, Great Britain, and Asia have their own technicalities that I won’t go into here.
BASIC Insurance: $0 cost and damage is adjusted at $.60 per pound of weight and is automatically included on ALL standard Moving Services and Freight Bill. So what does that mean? If a box drops, and there are 12 crystal stemware wine glasses that originally cost me $60 per stem – I’ll get $7.20? Nope. A typical box of stemware, packed correctly, weighs around three pounds. 3 lbs x $.60 = $1.80!
Actual Cash Value (ACV) Insurance: Cost depends on each mover, but typically costs about $4 per $1000 of valuation with a $250 deductible per claim. So $40,000 total valuation for your furnishings will cost you about $160. Let’s take that same example – 12 stemware purchased at $60 per stem is $780. HOWEVER, this insurance takes into account ‘wear and tear’, otherwise known as Depreciation. So, the insurance company DEDUCTS a percent (%) from your original purchase price, then applies the deductible and you will end up with maybe $350. Not so great.
Replacement Cost Insurance – Here is what most people think they are buying and, in my opinion, what they should buy with a $250 deductible . We’ll again use the same box of stemware. We know its value is $780. With replacement cost insurance, the only amount not covered is the $250 deductible. $780 – 250 = $530. Much better. But, much better, costs more! Movers that I work with charge around $9 per thousand of valuation. Using that same valuation of $40,000 of coverage, times the $9 per thousand will equal a cost $360.00. Do you think it’s worth the cost? Only YOU can decide.
As a moving organizer, I generally recommend it is better to have the insurance and not need it… because if you need the insurance and don’t have it, you will surely be disappointed.
Peggy Hughes is a Professional organizer specializing in moving & relocation, residential and commercial organization and productivity. She also stages homes to sell. Contact: PHA/Peggy Hughes Associates at 917-771-2276