Insurance is one of those things you purchase, that you hope you never have to use. It’s always good to make sure that your goods are safe by choosing a good moving company, but still, things can go wrong. At the very least, your moving company provides a free type of insurance or you may find that you may be covered by your homeowner’s insurance. However, these types of insurance may cover only a portion of the value of your goods, and the money you get may not even be enough to replace the broken or lost items. It’s always good to make sure you have enough insurance to cover any potential damage to your belongings.

When shopping around for insurance, you’ll have a couple of options:

Limited Liability – Also known as “released value” or “carrier’s liability” insurance. By federal law, this is the bare minimum moving companies should have (don’t deal with companies who don’t offer this). If you’re on a budget and don’t have many valuable items, then this should be ok. Limited liability is free and is included in price quote, but you get what you pay for. The mover is only liable for $.30 to $.60 per pound. So that means if the movers drop your 2 pound antique vase, you’ll only get $1.20 at most.

Declared Value Protection – similar to Limited Liability, liability is dependent on weight. However, this type of insurance covers 1.25 times the weight of the entire shipment, minus the depreciation of the item.

Full Value Replacement – This is the most comprehensive coverage available and will pay for the repair, replacement or give you the full value of cash. The premium varies per company, but much of it depends on the declared value of your items in your contract. For some items, you may be required to show proof, such as an appraisal or reciept. A way to reduce the costs would be to get an “Extra Ordinary” insurance for some items. If you have highly valuable items, like electronic equipment or antiques, you can declare them and the value individually and purchase additional insurance just for those items.

Whatever type of insurance you get, make sure that you read and inspect the inventory carefully. Declare the appropriate amount for the value of your goods. If you find that your homeowner’s insurance may cover your move, check what and how much exactly it covers. You can get additional insurance from a 3rd party if you feel it’s lacking.

If something does happen, then make sure you report it immediately. File a claim with your company:

• If you find any broken items, leave them in the box (especially if the movers were the ones who packed); take pictures for documentation purposes
• Take note of all broken or missing items and make a list. Go over each item with the movers, and have them sign and date the list
• File your claim immediately – for inter-state moves, a homeowner has 9 months to make a claim; for local moves, timelines may vary

Reputable companies should give you no trouble when processing a reasonable claim. However, if you have difficulties, try going through arbitration to settle the matter. Worst case scenario, it is possible to go to court and sue them. Hopefully, though, that won’t be the case and you can make your claim easily.