Moving to a new city or state can be a very stressful and hassling ordeal without any additional considerations. However, when you are depending on a moving company to transport all of your household possessions or goods with extraordinary value, it usually adds an extra level of anxiety to your move. Moving company reps often use the terms ‘moving insurance’ and ‘moving valuation.

Do you really know the difference between valuation and moving insurance? It is understandable if you are a little confused. This is because you may have heard a moving company employee refer to “insurance” as “valuation” and vice versa. It is no secret that this creates more confusion and uncertainty between you and your mover than the various coverage options that are available for your goods. 

Although both moving insurance and valuation coverage provide reimbursement in case, your goods and possessions get lost or damaged during your move, note that there are some key differences between these two coverage choices.

What is Insurance?

Note that insurance is a comprehensive system of protection against loss where a person agrees to pay a specific sum of money for a written guarantee that they’ll be compensated under stated conditions for any specified loss. Insurance is a contract that guarantees this protection. It is worth mentioning that only insurance companies or their licensed agents can sell you insurance. Moving companies are not insurance companies and therefor do not have the proper license to allow them to sell you insurance!

So, do not make the mistake of assuming that your moving company will fully cover the cost of your possessions and goods should they become damaged or lost. If a violent hailstorm rolls through on your moving day and destroys most of your stuff, then your insurance provider would cover it.

You should also be careful of unscrupulous moving organizations that tend to represent valuation coverage as insurance. Insurance may also offer coverage for loss because of acts of God, fire, flood, and some other unforeseen events. Baker International is a know provider of moving insurance. Very Select high end providers of home owners such as Pure or Chubb may also provide their clients with this type of coverage. It never hurts to check with your agent.

What is Valuation?

Moving valuation, on the other hand, is coverage for goods and possessions that are destroyed, lost, or damaged during a move. Note that it is your carrier’s maximum level of liability. For instance, if a mover trips and loses his balance walking up the stairs and drops your expensive vase, with moving valuation, you are covered.

Most importantly, despite what you may have heard, valuation is not insurance. Moving valuation is usually the maximum liability that your moving company will accept for the value of your possessions and goods if lost or damaged while in their possession. Keep in mind that your mover will usually agree to pay a certain sum of money, typically based on weight, in case your property is lost or damaged. Also, note that valuation coverage in the country is regulated by federal law.

Final Thoughts

At Harrington Moving & Storage, inc., we are dedicated to making your move as simple as possible. Before you sign a moving contract with any company, understand exactly what the moving company does and does not offer. Also, have them take you through the different types of valuation coverage so that you can make the best decision.