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. The best possible solution is to get moving coverage or moving insurance. Namely, many people are under the misconception that insurance is the same thing as valuation, but there are important and costly differences. And Columbine Moving & Storage is here to resolve the dilemma of insurance vs. valuation.

Why Do You Need To Have Your Items Protected In The First Place

To understand why you need to protect your items further than just using professional packing services, let us tell you a little story. Namely, according to Bloomberg.com, on October 5, 2011, a 775-foot Rena cargo ship got stuck on a New Zealand Reef near Tauranga. On Sunday, January 8th, the ship broke in two pieces because of 6-meter high waves, sending various cargo crates and oil into the ocean, and the stern end of the ship started to sink. The cargo ship was carrying things such as timber, plastic, and bags of milk powder, which, since going overboard, have washed up on numerous surrounding beaches, while some of the cargo crates were removed earlier. Legal action has been taken, and the Captain and Navigation officer have been charged with operating in a dangerous manner and tampering with documents.

This is a great example of why Columbine Moving & Storage requires a moving valuation to cover your shipment. Namely, moving insurance and/or moving valuation coverage adds another layer of protection in case of unexpected accidents. Investing time in securing your belongings reduces stress and prevents additional costs for repairs or replacements. But what is the difference between insurance vs. valuation?

Insurance vs. Valuation: Main Traits

How many times have you heard someone saying moving insurance but actually referring to valuation? So, let’s check the main traits of insurance vs. valuation and how do they differ. Namely, insurance offers comprehensive coverage for your belongings during a move usually provided by a policyholder. It protects against unexpected events like theft, fire, accidents, or natural disasters. If you are moving high-value or fragile items, insurance provides financial protection beyond the standard coverage offered by movers.

On the other hand, valuation is the most common type of coverage in the moving business. Valuation is when you, the client, tell your hired local movers in Aspen CO, for example, 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 during the walk-through estimate or when the shipment is picked up.

Types of Moving Insurance Coverage

There are two main types of insurance coverage. Released Value Protection – This is the most basic coverage provided by moving companies at no extra cost. It reimburses up to $0.60 per pound per item, which may not be enough for high-value items. The second type is Full Value Protection – This option requires an additional fee but provides better coverage. The mover is responsible for repairing, replacing, or compensating for lost or damaged items based on current market value. Some policies allow movers to replace items with similar ones rather than offering cash reimbursement. Alongside these two main types, you can opt for:

• Third-Party Moving Insurance – This coverage is purchased separately from an insurance provider. It offers protection beyond what movers provide, including coverage for theft, natural disasters, or accidents. Policies can be customized based on item value and moving distance.
• Total Loss Coverage – This type of insurance only applies if all belongings are lost or destroyed. It does not cover individual items but provides compensation if the entire shipment is affected.
• Named Perils Coverage – As the name suggests, named perils coverage covers specific risks like fire, water damage, theft, or collision. If damage occurs from an unlisted cause, it may not be covered.
• Floater Insurance for High-Value Items – This option covers antiques, collectibles, fine art, and expensive electronics. It ensures these items are insured for their appraised value rather than standard coverage limits.

However, premiums vary based on coverage level, item value, and distance.

Types of Valuation Coverage

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 by the first dollar. It is ideal for those seeking better financial protection without the risk of out-of-pocket costs. 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, discuss your shipment’s total value and understand your chosen coverage. Valuation is not the same as insurance, as it only covers the liability of movers in Avon CO, not external risks like natural disasters or theft.

Moving Insurance vs. Valuation: What to Use?

For extra protection during a move, using both can provide better financial security. Valuation covers the liability of movers Eagle CO, ensuring compensation for lost or damaged items based on weight or market value. However, it has limitations, especially for high-value belongings. Adding moving insurance offers broader coverage, protecting against theft, natural disasters, and accidents beyond the mover’s responsibility. Third-party insurance providers allow customization, covering expensive or irreplaceable items at their full value. By combining both options, you reduce financial risks and gain peace of mind, knowing your items are covered under multiple protections.

Hire Columbine Moving & Storage and Have Your Items Secured

Now that you know the difference between moving insurance vs. valuation, it’s time to choose your option and hire the fines movers in CO – Columbine Moving & Storage. We cover around 10 COlorado locations, and you can choose both moving and storage services. So, don’t leave your valuables at risk—choose Columbine Moving & Storage for secure, reliable services. Our expert team ensures your items are protected, packed, and transported with care. Whether you’re moving locally or long distance, we offer top-tier protection through valuation coverage and moving insurance options. You can expect safe handling, tested movers, comprehensive protection, and discretion. Contact us today, get your moving quote, and ensure the safety of your items.