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A relocation requires some serious planning and budgeting. After you have managed to do everything the right way, you still have to consider how to safeguard your belongings. This is the part when most people get confused. Valuation coverage vs insurance – what is the difference and how to choose? Ask your international movers for detailed information so you can make the best decision. See here for an explanation of their differences.
What is valuation coverage or valuation protection?
You can hear that most movers refer to valuation protection as insurance. This is not the same thing. Valuation coverage is a mover’s liability that covers some part of lost or damaged items. There are different types of coverage. You should check what moving companies can offer when you get international moving quotes. The main difference is the amount of compensation they will offer for your belongings.
A more simple way to explain this is by an example:
- Released value coverage is maybe most common because it offers basic coverage. This means that movers are liable for any damage or loss of items, however, they will compensate 60 cents per pound per item. So if they lose or damage a heavier electronic device or international moving crates, for example, it won’t be enough to compensate for the loss. When it comes to more expensive items you shouldn’t even think about valuation coverage vs insurance.
- Full value protection – in this case, a moving company offers liability and compensation for loss or damage. When you are moving from USA to Switzerland, a mover will usually offer this type of valuation, if you are not getting insurance. This coverage is more comprehensive, but it is not a very smart choice for more valuable antics or artworks. Full value protection limits coverage if you have “extraordinary value” of a certain item. Make sure to check the rules and obligations of your movers before you make a decision.
Valuation coverage vs insurance
A number one mistake when you are replacing term coverage with insurance is reimbursement. People think that movers will compensate for the damage to their belongings, but actually, it is up to the type of coverage you have chosen. There is also a question of liability. If you choose valuation coverage, a moving company has legal liability. This means they will reimburse you in the case of negligence on their behalf.
When you take the insurance policy, your belongings are covered by the insurance company, and not the movers. So if you are moving to Australia from USA with more valuable goods, you better consider insurance. Insurance covers the loss or damage of your belongings during transport, handling, etc. It depends on the type of policy you choose.
The main difference between valuation coverage and insurance should be clear right from the start. You can choose either one, as long as your mover explained you details and possibilities of coverage. You mustn’t be misinformed because insurance is not the same as valuation coverage.