Moving Insurance vs. Moving Coverage: What is the difference?
Moving Insurance vs. Moving Coverage: What is the difference?
No matter the cost of your items, your belongings are valuable to you, and you want them to arrive undamaged to their new home. That is why one of our most frequently asked questions is about moving insurance and moving coverage. So, let’s break it down to help you make the best decision for your situation.
For the sake of simplicity, we will be discussing moving coverage for intrastate moves in California only. However, the principles and definitions provided here will still help you to ask the right questions of your interstate moving company to get the answers you need to determine if additional moving coverage should be purchased.
Why hire a licensed moving company?
Let’s begin by stating that the best protection for your items in transit is hiring an experienced, licensed professional moving company that employs and trains their moving crews in the craft of safely transporting items of all shapes and sizes. Are you moving a piano? Relocating a commercial or business space? Packing items to go into storage? Not only do the crew members at Camelot Moving & Storage take pride in their skill and craft, but our dispatch team works hard to assemble a crew with the right combination of strengths and skills for the specific demands of each relocation.
One of the reasons why you should select a licensed moving company is that they are regulated by California’s Bureau of Household Goods and Services and must follow the state’s coverage requirements for all moving companies. All licensed moving companies in California must include basic moving coverage in their pricing, whether by the hour or at a flat rate. Therefore, whatever price your licensed moving company gives you includes basic coverage. No further purchase is needed to receive this coverage.
What is basic coverage?
Basic coverage is not the same thing as moving insurance. Moving insurance covers the risk of loss, no matter who is at fault. Moving coverage covers any damage to your belongings by the mishandling of your moving crew. For example, if an appliance does not work after your move, but there is no external damage (dents, scratches, etc.) that indicate improper handling by the moving crew, then according to the State of California, the appliance is not covered under the moving coverage regulation. If you had purchased a separate moving insurance coverage policy from a third-party insurance company, the repair or replacement would be handled based on the policy terms.
How much does basic coverage cover?
California’s required basic coverage is a maximum of 60 cents per pound per article damaged. It is important to note that basic coverage is calculated based on the item’s weight, not its value. Additionally, it is up to the moving company whether they will reimburse you for the damage or if they will repair or replace the damaged item.
Should you purchase additional moving protection for your belongings before Moving Day?
If your moving company offers it, you can buy additional moving coverage. Called valuation coverage (also known as actual cash value), it covers damage caused by a moving crews’ mishandling based on the current value of your items, not based on their weight. Valuation coverage is not moving insurance, but it may provide greater reimbursement if a valuable item is mishandled. It is always wise to ask questions about which moving coverage option is best for your belongings and move with a moving company representative as you prepare for your move. When they provide you with an estimate of the costs of your move, they can give you specific options and advice based on the current value of the items being moved.
The Camelot Difference
At Camelot Moving & Storage, we are fully aware of the precise nature and requirements from the State of California relating to moving insurance, basic coverage, and valuation coverage. It is the policy at Camelot Moving & Storage to go above and beyond the basic requirements of our industry. Our goal is to try to restore any damaged items handled by our crew to the state they were before the move, no matter how the damage occurred or if this incurs a cost beyond the maximum reimbursement required by our license. While property damage at the hands of our trained crews is a rare occurrence, we consider it our responsibility as your trusted moving company to address any damage that occurs during your relocation as best we can. Contact us to learn more and receive a free price quote.