Moving Coverage – Valuation vs. Insurance Coverage

Posted on March 15, 2010

Valuation is not insurance!

Before you sign your moving contract make sure you choose the coverage option that is best suited for you. Many people don’t weigh their options, assuming that noting will go wrong during their move, but accidents do happen.

Your mover may or may not inform you of your coverage options. If your moving company doesn’t offer a verbal explanation of your options and you do not read the fine print on your Bill of Lading, you will automatically be covered under your moving company’s Full Value Protection (FVP) coverage. Please note that FVP is not insurance, but valuation.

Valuation is the worth of your shipment to the moving company. All FVP rates vary among moving companies, but are usually calculated at $0.06. per pound and is based on the total weight of your shipment. Valuation is not regulated by a governing body, such as the State insurance laws are; rather FVP rates are left to the discretion of the moving company, but are typically calculated at $0.06 per pound for the total weight of your shipment.

Insurance coverage on the other hand is offered by a third party vendor and allows you to choose your coverage and deductible. If your belongings were to incur any damage, the insurance company would pay the cost of lost or damaged goods minus the deductible. You can choose the deductible you are comfortable with. On average, a higher deductible will reflect a lower cost and vice versa.

Visit your Miami Movers often for pertinent information that affects your moving services.