Moving Insurance
One of the biggest mistakes everyone tends to make when they move is underestimating the insurance coverage provided by moving companies. We check that the movers are licensed, bonded and insured and then we assume that their insurance covers all eventualities and forget about it. This can be a mistake.
Most moves are smooth and trouble-free, but accidents can happen and damage can be caused to our belongings. This can turn into a real headache. Insurance coverage is a vital part of the moving process and without proper moving insurance you risk loss or damage to your belongings with no recourse to full compensation. There are two ways of ensuring adequate coverage and best of all you don`t have to choose one over the other and may opt to utilize both.
First, speak with your current home insurance adviser. Find out if your existing home owners’ insurance policy will cover you during your move. If they do then check if there are any exclusions. If you find out that you don`t have coverage for the move in writing, ask if they can provide you with coverage. If your insurer doesn`t cover you under your existing agreement or you are worried that the coverage will be inadequate, it is worth exploring if you can pay a premium for special short-term coverage.
Second, speak with your moving company before you agree to move with them. Ask them to explain their insurance coverage, its limits and exclusions. Take care to read any policy documents they provide. Be sure to choose a moving company that offers at least what is called "Standard Valuation Coverage" as required by law.
Individual moving companies and home insurers will offer varying degrees of insurance coverage and claims levels and you`ll only really find out how this applies to you by reading the small print on your contract information and by discussing this with your mover or your insurance adviser. In most cases you`ll be expected to know how much insurance coverage you will need and to provide a list of your valuable items (you may have to pay extra for these depending on their value). Some insurers will not include certain types of valuables as standard within their policy. They may be willing to insure them, but you will most likely have to pay a premium. Remember that many moving companies will not allow you to claim for damages in transit if they didn`t pack your belongings themselves. So, unless you can prove that it was their fault, their insurers will not reimburse you for damages or loss. It`s vital to make sure you assess their liability in the event of a claim.
It`s also worth checking to see if your moving company’s insurance policy includes damage to your premises. The majority of movers are experienced and careful but accidents can happen in your old home as they move your furniture and belongings. Most moving companies will offer coverage for this. Be aware that if a mover does cause damage to your home on the day of your move you will need to tell them about it immediately. In all moving insurance policies you`ll likely find that there is a specific time limit for filing claims. If you discover damage outside of this time limit you won`t be able to make a claim. Be sure to check the terms and conditions for actual regulations about this.
You may come across various types of moving insurance coverage. The primary types include:
1. No charge for the actual insurance coverage, as it is included in the moving quote. In this case you may only be able to claim back a percentage of the value of your goods if you experience damage or loss.
2. You buy a policy and pay according to the weight of your goods. This type of policy is often limited by depreciated value so you may not get back what you paid for an item but an estimate of its current worth. This is often termed `like for like` cover.
3. You pay extra to cover VALUE instead of WEIGHT. In this case you will need to declare the value of your insured goods to the insurer or the mover.
4. You pay for a full value policy, which will give you cover you at current market value in the event of a problem. This is often termed `new for old`. This can be in the form of repair, a replacement or a payment.
Some movers might ask you for a `guestimate` of the total value of your goods. Although making an educated guess is hard to get right, it can be essential for you to be as close as possible to have the best level of insurance protection. If you have many valuable items to be moved, be prepared to create a list of them, with assessments and perhaps even photos before you can have proper insurance coverage.
You`ll find that many movers` insurance policies are calculated on a percentage of the removal cost rather than on the value of your goods. This may not be enough for your needs. Most movers will recommend to you then to extra coverage. You need to check the maximum premium that the mover will allow for one item and also how much you will lose if you need to claim on the policy.
For most of us the basic insurance policy of our chosen moving company will be more than enough. However, pay special attention to the details if you are planning a long-distance or international move. If you are moving internationally it`s essential to have full moving insurance coverage. Your goods will passing borders and may be subject to customs checks.
With these moves you`ll have to factor in increased possibilities of accidents, theft, loss or damage. If your goods will be placed in storage for any period of time during the moving process, you will need to check the insurance coverage for the storage facilities.
