The insurance which is provided by the moving company is not just sufficient to cover the full value of items. And therefore it is a must to be adequately covered.

Note that most moving companies cover only a portion of the total value of possessions and you need to take additional insurance to get fully covered.

Check how much is covered by the moving company.

Examine the contract and find how will the moving company estimates the value of your possessions.

Determine the maximum liability dollar value of the insurance provided by the mover and the process involved in case you need to place a claim. ( how ever the maximum claim can get discounted due to factors like government regulations, taxes etc)

The insurance available through the mover is based on something called valuation. It simply means the method of determining liability – by you and the mover. Basically there are three types of valuation

Declared value: this is the simplest of all. You multiply with some number, the weight of the things you move. That is the total weight of the shipment multiplied by a specific amount per pound gives the maximum amount that the mover would be liable. As for example, you are covered at $.6 per pound of weight and your belongings totaled some 10,000 pounds, then the insurer would be liable to the extent of .6 x 10,000 = $ 6,000. note that this value is the maximum amount the mover is liable, the claim is based on the depreciated value of the item(s) damaged.

Lump sum value: an alternative to the declared value based more on value than on weight. You can take for example, per $1000 of value, $50 insurance like that. The amounts, terms vary as per the insurance companies. But to avail this you should know the value of the belongings and declare them in writing on the bill of lading.

Full value protection : this is the comprehensive of all the kinds and covers almost all kinds of loss. It pays for the repair(s) or replacement of the items lost or damaged. Note that there would be a minimum coverage and deductibles (an amount compulsorily deducted from the claim) are applicable.

To understand the difference between full replacement coverage and the actual cash type, assume you have a 5 year old TV. The TV is dropped by the driver and smashed in little pieces. If you have actual cash coverage, the claim department will apply depreciation and pay you the value of a 5 year old TV. If you have full replacement coverage, you will be paid for a new TV.

If a carton is delivered in exactly the same condition as it was picked up and there is damage inside, you will most likely not be covered. The reason being if the carton is properly packed, there should be no damage inside with normal handling. Only when the exterior is damaged and interior too, then you will be covered. This is not the case when the packing is done by the movers themselves in which case you are always covered.

It is better to take photographs of all the items you are moving in order to have the proof of their condition before moving so that in case you need to make a claim, you have proof of the condition too.

You can have two kinds of supplementary insurance – homeowners insurance and transit insurance. Homeowners insurance policies cover about 10 percent of the value of personal property, including coverage for breakage and theft in transit, minus the usual deductible. On the other hand transit insurance should cover the gaps left by other policies. This is important in the sense that it can save you a lot of money and is available through the mover, a move-it-yourself company, or through the home owners insurance company.

If you need to make a claim, generally you have nine months to do so.