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I called our insurance company, and our belongings are not covered if the interstate moving company breaks anything.
The first quote I got so far said they do the .60 on the dollar typical insurance, but for $636 we can purchase insurance that has a $250 deductible and coverage up to $100,000.
I can't figure out if that is worth it or not.
Let's say they drop the fridge, which cost $2000, then the money would be well spent?
Usually nothing gets broken. If something does get broken, it would be a hassle to collect anyway. I would not purchase the insurance.
If they break the fridge and nothing else, here's how it might work:
The included insurance: Although the fridge may have cost $2000, it might only have half its useful life yet. Maybe they'll agree it's worth $1000. Then they'll pay you $600.
The extra insurance: The half-life of the fridge is worth $1000. The deductible is 250, so they pay 60% of the other 750, which is $450. You've also paid a bunch for the insurance, so you lose.
Movers don't usually drop and break stuff, though it's possible. The insurance would be more useful in the case of something big - like the truck crashing and burning. Even then, is the value of your stuff documented? You'll have to fill out a bunch of paperwork itemizing your valuables and saying how much they're worth.
If you want to minimize the risk, go with a company that uses vaults, especially if you might need your stuff stored. That way you watch them pack it, you put a lock on the vault, and no one messes with it until you take the lock off at your destination. These vaults will also provide more protection for your stuff in case of accident, fire, or bad weather. We used Atlas Smartmoves, but other companies have them, too.
(And ask if your movers give a AAA discount! We saved far more than what our membership cost.)
The extra insurance: The half-life of the fridge is worth $1000. The deductible is 250, so they pay 60% of the other 750, which is $450. You've also paid a bunch for the insurance, so you lose.
Oops. I messed up. With the extra insurance, I guess they're paying 100% (if you've done all the paperwork correctly), so they'd pay $750 for the fridge. Given the low risk, still not worth it.
Last year, the Surface Transportation Board (STB) made three major changes in the way that household goods motor carriers and mover brokers licensed by the Federal Motor Carrier Safety Administration must estimate shipment valuation when transporting personal property interstate for individual COD shippers. The changes become effective May 15, 2012.
Under these new STB rules, a consumer must select one of the three options for the carrier’s liability for loss or damage to your household goods.
Paying $886 to repair or replace a $2000 refrigerator may not seem like a good value. Howver, paying the same amount to cover the inconvenience and loss of an entire shipment destroyed in a catastrophic incident like a van fire, traffic accident, vehicle theft etc. may make the expense more palatable.
If you have homeowner's insurance, it will cover a catastrophic incident to the whole truck.
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