| Full Replacement Value - High Value Inventory is offered for Interstate (moving from state to state), Intrastate (moving within the same state) and International shipments. It provides coverage based on an itemized and valued inventory prepared by the assured (the customer buying the policy) prior to the shipment date. Please note that the value assigned to the articles should be the cost of replacement at your new destination. Any settlement based on this type of coverage would be the lesser of repair costs or the amount declared on the valued inventory.
Example: You have purchased a sofa in 1999 for $400. The current replacement value to purchase a like/kind sofa is $900. You should list the sofa's value at $900. If you list the value at the $400 purchase price, and the sofa is damaged or destroyed during the move, you would be limited to a maximum repair or replacement settlement at the amount you declared on the High Value inventory.
This option is the most comprehensive and is the best coverage available, as it does not reduce the settlement amount for depreciation or a co-insurance penalty. This completed inventory could also act as a base for your Homeowners' or Renters' insurance policy at the new location.
Any items you wish to insure MUST BE SPECIFICALLY DECLARED AND VALUED. Failure to comply will result in a settlement denial of the claimed item.
Full Replacement Value
Lump Sum is offered for Interstate (from one state to another) and International shipments only. This option provides coverage based on the total declared value/lump sum of the shipment. To avoid being under insured, it is required you declare a value equal to at least $8.00 times the total weight of your shipment and that high value items be specifically declared and valued. In other words, if your shipment weighs 3,000 pounds, you need to insure it for a minimum of $24,000 and indicate the individual value of your high value items.
If you declare a lump sum amount, any shipped item valued at over $500.00 per item or set MUST BE SPECIFICALLY DECLARED AND VALUED. High value items are defined as any shipped item valued at over $500.00 per item. Failure to comply will limit recovery to a maximum of $500.00 per item or set. The amount shown on the high value inventory will be part of the total declared value and not in addition to it. Items may be grouped together, such as clothing and bedroom sets. Please remember that in the event that a claim is filed for any of those sets, the settlement amount may reflect the average value of the declared items in that set.
Items valued at less than $500.00 per item do not need to be specifically declared and listed on the inventory list, however, to be sure that these items are covered, you MUST include their value in your total Declared Value.
Example: You purchased a sofa in 1999 for $400. If this item were lost or destroyed, the cost to replace the same like/kind sofa today would be approximately $900. You must list the current replacement value of $900 on the High Value inventory form for proper coverage. If the sofa is lost or destroyed, and you have not listed the current replacement value on the High Value inventory form, you are limited to a maximum of $500 for this item.
In the above example, assuming that you also own other items but individually none of them are valued at over $500, these items do not need to be listed. However, their value must be included in the total Declared Value. So, if you own $5,000 worth of small items AND the sofa, your policy's declared value would be $5,900. If you do not allow enough coverage to be included in your policy's declared value for the smaller items included in your shipment, you run the risk of underinsuring your shipment and may not be compensated appropriately in case of a claim.
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