Moving Insurance – FCV vs. ACV
Most people never think twice about buying moving insurance. Unfortunately, accidents, damage to goods and lost and misplaced items can happen on moving day. You have several options when it comes to moving insurance – one is free, but it won’t give you much protection.
When moving basic liability coverage is generally provided by your mover at no additional cost. The basic coverage a moving company is responsible for is $0.30 or $0.60 per pound per item depending if your goods are shipped within the state or across state lines. In the case of a mobile storage or a rented truck companies, this liability is set as low as $0.10 per pound per item. This coverage in California is based at 60 cents per pound per item. So if an item is damaged by your mover and it weighs about 10 pounds, you will only get $6.00.The good thing is that you can purchase additional coverage.
There are two kinds of general moving insurance that you can buy: Full Cash Value Insurance and Actual Cash Value (Valuation).
Full Cash Value (FCV) insurance is usually purchased from a third party insurance provider like, MovingInsurance.com. With FCV insurance you can pick and choose the items you want to insure or your entire household goods. A detailed itemized listing of the covered items is normally required for Full Cash Value insurance.
FCV will compensate for the replacement value of the damaged or lost item. Just like with automobile insurance there is a deductible for this type of coverage. In most cases, there are several levels of deductible: $250, $500, $750, $1,000, $1,500 and $3,000. The deductible you choose determines the cost of the insurance you are seeking to purchase, and is a one-time deductible and NOT per item claimed. Please choose a deductible that best meets your needs. Remember, a higher deductible will reflect a lower cost, and vise versa.
Actual Cash Valuation programs offer limited coverage and will not provide full replacement compensation. Just like with your car, you will not get full replacement of a lost or damaged item.
This type of coverage is less expensive but less comprehensive. ACV is commonly offered by your mover. This cost of this is based on the overall estimated valuation of your entire shipment.
The cost of this can vary from 50 cents to 75 cents per $100 of valuation. You cannot just pay for the minimum and expect to have all your items covered. If replacing all your belongings would cost $45,000.00, you must insure it for that value.
If you purchase moving insurance coverage for your goods, you should get it no later than 2 days prior to your Packing Date. The Packing Date is the first date the movers will pack and handle your goods, and it could be the same as your moving date. In any case, insurance must be purchased prior to the loading of your goods onto the moving truck.