Total Loss Only (TLO) insurance is a type of coverage that will only compensate for damage if the shipment is completely destroyed or lost. This type of policy will not cover individual items that are damaged or missing. If your policy includes moving and storage coverage, it is important to understand what this means. In many cases, it may only provide protection against catastrophic damage to your belongings.
Most policies do not cover damage to individual items, but if your possessions are in storage and the warehouse catches fire, or if the truck carrying all your items has an accident that destroys everything, you may be covered. It is important to note that if some of your personal items are damaged due to a typical breakage, such as a fall, your policy likely will not provide compensation. When it comes to filing a claim for losses incurred during a move, it is important to understand the different types of coverage available. Assuming that the customer has verified the damage at the time of delivery and a corresponding item cannot be reproduced (cushion in this example), the insurance company will accept the replacement of the sofa or the insured value, whichever is lower.
In some cases, this may limit the liability of the moving company and make purchasing moving insurance more attractive. The cost of moving insurance will depend on factors such as the value of your belongings and the type of coverage you choose. When moving to another state, moving companies are required by federal law to offer two types of coverage. Most homeowners insurance policies do not cover household items during a move. It is important to review the moving company's insurance policy carefully to make sure you know how much coverage is available.
You can read about both types of liability in the brochure Your Rights and Responsibilities When You Move, which is provided by federal regulations when moving from one state to another. Depending on the value of your belongings and how far away you are moving, it may be worth considering a moving insurance policy. Your goods are covered for up to 90 days if they are stored in the storage facilities of the moving company (SIT), as well as if they are moved out of the warehouse. Most insurance policies for renters and homeowners do not usually cover possessions damaged or lost due to a move.
Your homeowners policy may or may not cover your belongings during a move or when they are in the moving truck. If you have chosen an insurance policy for all types of risk-valued inventory and want to insure your items at their full replacement value, you will need an assessed inventory form. As an expert in moving insurance policies, I recommend that you take some time to understand what type of coverage is available and what type of losses can be claimed with a moving insurance policy. It is important to review your policy carefully so that you know what kind of protection you have in case something goes wrong during your move. Knowing what types of losses can be claimed with a moving insurance policy can help you make an informed decision about whether or not it is worth investing in.
