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Insurance vs. Valuation: The Important Differences

Whether you are moving your home or office, every item has its individual worth, which is important to take into consideration when making a move. Many people are under the misconception that insurance is the same thing as valuation, but there are important and costly differences.

 

Valuation is the most common type of coverage in the moving business. Valuation is when you, the client, tell your hired moving company how much your total shipment is worth. Once the moving company knows this amount, you pay a premium, for the coverage. Therefore, if something is damaged, the moving company will cover repairs to bring the item(s) to the same condition the item(s) was in prior to the move, or replace the irreparable item(s) with a like item, at today’s value. This information is usually exchanged at the time of the walk through estimate or when the shipment is picked up. There are two types of valuation, the first being “with no deductible valuation”. No deductible valuation is just as it sounds, there is no deductible and customers are covered from the first dollar. The second type is called “with a deductible”, which means there is a deductible that must be met on damage claims. Before finalizing your move be sure to discuss your total shipment value and remember that valuation is not the same as insurance.