You should purchase special insurance coverage for your household goods in transit. A homeowner's policy rarely covers household goods in transit; even when it does, there are often mileage limitations and other restrictions.
What Kind of Coverage Do You Need?
Generally, you can calculate the amount of insurance coverage you will need three different ways:
- By weight — Purchase at least $10.00 per pound (estimated weight) of household goods, which is the amount insurance companies recommend.
- By room — Use a formula of $10,000 per room of furniture.
- By contents — Determine the actual value of your shipment by taking a complete inventory of your household goods and listing the actual or replacement cost of each item.
Some Other Tips:
- If you purchase insurance, be aware of hidden deductibles or policy limitations; some policies do not cover or have limits on antiques, furs, etc.
- Most moving insurance covers external damage to appliances and electronic items when the damage can be identified as the result of mishandling. However, malfunctions of sensitive mechanical or electronic equipment that cannot specifically be traced to mishandling are considered mechanical "derangement" and aren't covered. If, for example, your TV, VCR, or CD player doesn't function properly upon delivery — but there is no clear evidence that it was mishandled during shipment — the malfunction would be considered mechanical derangement, and the item would not covered by insurance.
- Most policies do not cover jewelry, personal papers and documents, coin or stamp collections, boats valued over $25,000, and damage caused by mechanical derangement or inherent vice.
- You are required to hold on to all damaged articles, even if irreparable, for the mover or its representative to view. If items are not available for inspection, the mover or insurance provider is within its rights to decline liability.
