Knowing how to protect your goods during shipping can take a load off of your mind and help you focus on the journey ahead. Liability for your goods during shipping can vary significantly between moving and shipping companies. To safeguard yourself against potential damage, it’s essential to understand four key aspects of coverage before finalizing your agreement. Whether you’re working with Jacksonville movers, movers in Dallas, or movers in other cities, being informed about your coverage options can make all the difference.

1. Valuation coverage is not insurance

Insurance is a contract between you and an insurance company. You pay a premium, and the insurance company will protect you from loss up to the limit covered in the policy. It may also provide coverage for loss due to acts of God, fire and other unforeseen events. On the other hand, valuation coverage is regulated by Federal law and is a level of liability that shipping companies assume—meaning that, if your goods are lost or damaged, the mover agrees to pay a specified amount and will only pay on a claim that is directly caused by the mover.

2. Shipping companies cannot sell you insurance

Only an insurance company or licensed agent can sell you insurance. Don’t assume your moving company will cover the full cost of your goods should they become lost or damaged. Be careful of unscrupulous moving companies who will present valuation coverage as insurance. This practice may constitute fraud, and should a claim arise, you could find yourself undercompensated for lost or damaged property.

3. If you purchase insurance, insure for the proper amount

If you choose to decline valuation coverage and purchase third-party insurance, insure your goods for 100% of their value. If your property is insured for less and you have loss or damage, you could face significant out-of-pocket costs. Take the time to properly assess the value of your goods.

4. Under Federal law, moving companies are required to offer valuation coverage

Under the Federal Motor Carrier Safety Administration (FMCSA) regulations, a moving company must offer you at least two different levels of liability: released value protection (RVP) and full value protection (FVP).

RVP

This will protect your property at $0.60 per pound, per item, and is included at no additional cost. In the event of damage, you’re compensated by the weight and not value of the damaged item. Though RVP is the most economical valuation coverage option, protection is minimal, so you must sign to elect RVP instead of FVP. Keep in mind you could end up being grossly undercompensated for damage to an expensive item that doesn’t weigh very much.

FVP

This coverage requires movers to be liable for the replacement value of the item with options to repair it, replace it with similar or pay a cash settlement. This option will generally cost you $8 to $12 per pound, per article, and is the highest level of protection available other than insurance. Be aware that items of extraordinary value (more than $100/pound) must be declared on your shipping documents. If not, your mover will not be liable for loss or damages. You have the right to decline both valuation options and purchase your own third-party insurance to protect your move.

Before signing a moving contract, understand exactly what your moving company offers and have them take you through the types of valuation coverage.

Five features to look for in a good policy:

1. Full replacement value — typically you value your shipment for replacement cost at destination, not what you purchased it for at origin location
2. Pairs & sets coverage
3. Mechanical derangement
4. Storage in transit coverage
5. Mold & mildew component

Your Moving Company

International moving companies like Suddath offer a variety of valuation coverage options as part of their moving services.

When you hire Suddath for your move, you’ll be assigned a dedicated international move coordinator, and this moving specialist will discuss the specifics with you about the valuation we offer. Be sure to check out our international moving guide for more help with planning your international move.

As reputable international movers, Suddath takes all the necessary precautions to ensure that your belongings arrive safely and on time. Our international moving teams are highly trained and certified in the latest international packing standards.

In the unlikely event that something gets damaged during your move, our claims team is here to handle the settlement process. Your agreed-upon insurance coverage will determine the settlement for any potential claims. Our claims filing process is fast and easy and can be completed online.

Moving Insurance Policies

When planning an overseas move, it’s a good idea to familiarize yourself with the insurance terms you’ll hear when discussing coverage options with insurance agents and international moving companies.

Marine cargo insurance is another name for international moving insurance, and the coverages of these policies can vary from company to company.

Here are three specific types of moving coverage and a summary of each one:

• All Risk: If you want complete coverage, consider an all-risk policy. Anything that can go wrong is covered unless an item is expressly excluded from the policy. This coverage is comprehensive and even covers mold and mildew damage, which are common exposures during international moves.
• Named Perils: Not as extensive as all risk, named peril coverage only covers perils or hazards that have been named. Examples of common perils are vehicle accidents, fire, lightning, smoke, and theft. If you decide to purchase a named perils policy, it’s important to know which perils it covers.
• Total Loss: Some people looking to cut costs opt for total loss coverage. This risky option doesn’t apply to damage to individual items. Instead, it only pays out in the event of a complete catastrophe that affects the entire load.

Other Types of Insurance to Consider

In addition to the coverage that international moving companies may offer, a move to a new country can affect other types of insurance, such as health and life insurance. You will need to consult with your own insurance providers to confirm details, but here’s an overview that can help with your overseas move planning:

Health Insurance

Getting sick or injured while uninsured can be financially disastrous, and your current health plan probably won’t cover you while abroad.

Although you may already have a plan for obtaining new health insurance after establishing residence in your destination country, you may find that there will be a gap in coverage during the transition.

Some countries require foreigners to carry health insurance to ensure that they don’t become a burden on public programs, which is why an international policy is often the best choice for coverage during the moving process and beyond.

Travel Health Insurance or an International Health Plan

Travel health insurance or an international health plan can be temporary solutions until you’ve obtained health insurance in the new country. An international or global health plan could work, not only during the transition but also after the move.

International health coverage will be convenient if you plan to travel outside your destination country after the move. There are also other benefits to investing in a global plan. For example, if you’re moving to a place that does not have adequate medical facilities, you could select an international health plan that includes evacuation coverage. Another potential benefit of dealing with an international health insurance company is that they will usually provide a translator if there’s a language barrier.

Life Insurance

Life insurance policies can be more flexible than health insurance policies. If you purchased a life insurance policy before moving, it might stay in force for a while. That said, becoming an expatriate can sometimes invalidate your insurance altogether, especially if you’re moving to a higher-risk country.

Insurance premiums are determined in part by where you live, so failing to notify your insurer of such a drastic change of address could, in some cases, render your policy null and void. Be sure to contact your life insurance provider before your big move.

Homeowners or Renters Insurance

Most homeowners recognize the importance of homeowner’s insurance, and if your home is financed, your lender requires it.

Renters insurance is not as widely used, but it may be more important than you think. When you’re relocating to a home in unfamiliar surroundings, it’s a good idea to be prepared for losses due to break-ins, natural disasters, and other unexpected events. Be sure to also talk to your insurance agent about whether your home policy might cover your belongings during transport.

Vehicle Insurance

With any form of insurance, it’s essential to disclose to your insurer that you plan to leave the country so they can make the necessary adjustments to your insurance.

Many insurance companies offer international insurance as an add-on, which is an easy way to protect your car, motorcycle, or other personal property when you move to a different country. Also, be sure to let them know if you are in the military because many insurance companies offer discounts and special services for military families.

Questions about valuation or other shipping coverage? Contact us to talk about your upcoming move and the options available to you.