Moving -- even in the best of circumstances -- can be a traumatic experience. In fact, a list of life's 20 leading stressors developed in the 1960s includes, you guessed it, a "change in residence."

As bad as moving can be in general, it can be worse in specific cases. Your possessions can be lost or damaged.

At this point you might think, "well, ahem, what about moving insurance?"

Good question.

In general, there are four approaches.

• Released Value: No charge for the policy, but in the event of trouble you only get 60 cents per pound for goods that are lost or destroyed.

• Declared Value: You pay for coverage, and "coverage" in this case is $1.25 per pound. If you lose a ton of stuff, you get $2,500. This coverage, says BadMovers.com, takes into account depreciated values. In other words, "if the sofa is ten years old they might pay you $100, claiming that they can get one in similar condition from the Salvation Army for that price. "

• Lump Sum Value: Additional coverage above $1.25 per pound. For $7.00 per $1,000 in coverage, you can get additional protection which is related value rather than weight. This means you must know the value of what is being shipped and, according to the American Moving and Storage Association, "you must make this declaration in writing on the bill of lading."

• Replacement or Full-Value Protection: "Many movers," says the National Movers Network, "offer a fourth level of added-value protection, often referred to as "full value protection" or "full replacement value." If you elect to purchase full value protection, articles that are lost, damaged or destroyed will be either repaired, replaced with like items, or a cash settlement will be made for the current market replacement value regardless of the age of the lost or damaged item. Unlike the other options, depreciation of the lost or damaged item is not a factor in determining replacement value when the shipment is moved under full value protection."

Before you select a moving company, review their terms for coverage -- including liability for any property loss or damage. While you're reviewing the mover's policies for coverage, you'll see an area to write out value claims.

This section of your contract asks you to place a ballpark estimate on the total value of your possessions -- not an easy task, to be sure, but a critical one. This valuation determines the insurance company's liability cap, as well as the manner in which your claim, if issued, will be adjusted. The insurance company's liability, in turn, is based upon various taxes, federal regulations and laws. Remember that the valuation listed does not mean you, the consumer, are insured for that figure.

Instead, by providing a valuation, you're helping to determine the liability of your moving company. You'll need to pursue coverage for yourself in a separate section of your contract, or in another document altogether.

Moving insurance thus requires preparation if you want anything more than basic coverage. You need to know what is being shipped, it's value, and you need to outline all items on the bill of lading to back up your claim.

Incidentally, BadMovers states that moving "insurance" is actually something else, an assumption of additional liability.

"The mover will be happy to charge you for assuming further liability for damages he causes," says BadMover, "just don't expect to ever get any money out of it. Unlike real insurance, this "insurance" is not regulated by state insurance commissioners. Like the rest of the moving industry it isn't regulated at all."

For more articles by Courtney Ronan, please press here.

Published: February 28, 2001

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