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Moving Insurance – Types of Moving Insurance

Moving Insurance is essential. No one can underestimate the value of an insurance cover during the moving process. For this reason, it becomes important for you to understand the various types of insurance covers that are available in the market today.

One of this is a full replacement value coverage, also known as a full value cover. A full replacement value coverage offers you two options; a valued inventory cover and a lump sum cover. The valued inventory cover is best for people that intend to move across states though it may also be used for international shipment.

You will be required to declare the value of all the items that you intent to move when you take out a valued inventory cover. Compensation for this form of cover is based on the average market value of the items that you have declared. On the other hand, a lump sum applies only to interstate and international shipment.

This form of cover will require you to calculate the average lump sum value of all your items though the amount that you finally come up with should not be less than the amount that will be specified by the insurers at the time of the contract.

The other type of insurance cover that is available today is a standard coverage insurance. Under this insurance cover, the mover is required by law to provide a free standard coverage to the person that is moving. Compensation for thus type of insurance cover is based on the total weight of the items that are being moved. Unfortunately, standard coverage insurance does not extend to items that are severely damaged during the moving process.

If you are not satisfied with a standard insurance, you could still obtain a third party insurance cover. This form of cover allows you to recover any additional cost from the company that sold you the insurance cover. However, you will be required to pay the cost of purchasing this cover.

A named perils- selected inventory cover is the other type of cover that you are bound to find being offered by insurers in the moving industry. Just as the name suggests, this type of cover applies to itemized and selected items. Any person taking out a named perils-selected cover is required to list down and value all items that will be covered by the insurance cover when taking out this type of cover.

Compensation for a named perils cover is based on the declared value. No reduction is made on the settlement amount during compensation making a named perils-selected inventory cover one of the most convenient forms of insurance covers in the market today.

The other type of cover that you may take out when searching for insurance is a storage extension cover. This form of cover applies to items that have to be placed in a warehouse during the moving process. It covers risks such as theft, destruction by storm, earthquake and vermin. Closely linked to this is a transit insurance cover that extends to items that are destroyed or lost while on transit.

Lastly, you may wish to check out a total value insurance cover especially when you wish to obtain a cover for your entire shipment. Compensation under this form of cover is based on the total value of your items.