A Guide to Understanding Moving Insurance

When you move, you aren’t just taking product from one house to another. You are taking a lifetime of priceless memories, work, sweat, tears, joy, and heart from one home to start a new home. Knowing how to care for these memories in transit, the articles that have been gifted that are not only emotionally priceless but valuable in the marketplace as well, is not always easy. How do you place monetary value on a watch that your grandmother gave you before she died or that special gift that your significant other gave you the day you saved your marriage?

In over 90% of basic home to home moves that do not include an airline, moving is usually an accident free pursuit. While there are annoyances and timing mishaps, there are very few actual claims against property. But for those times when that bump in the road turns out to be more than a mere bump, your belongings need to be properly insured.

It is normal to believe that once you enlist the services of a mover, that he or she would be liable for replacing anything that gets broken while in their possession. This is not always so cut and dry, and the informed consumer is the one who ends up with replaced valuables. Knowing and understanding the options you have when hiring a mover to handle your possessions will make it easier for you to determine how to proceed. Don’t just glance over your belongings and make a quick decision. Think things through, weigh your options, and make the best choice for protection that you can.

Options

The Federal Laws that apply to state to sate moving companies are a little loose, but with clear interpretation they begin to make perfect sense. When you hire a state to state mover you will faced with a choice of two types of moving valuation. Full value protection offers is considered the more comprehensive of the two types of insurance. Of course, not everyone feels they need such extensive coverage and they can opt for what is known as released value.

Full Value Protection

Federal law provides full replacement value for anything in the entire shipment when the mover occurs loss or damage. Replacement value refers to the value of the article when replaced with a comparable item in today’s market, not necessarily what you paid for it. Thus, if your television is five years old and you would have a hard time pulling $400 for it on EBay, you would still be awarded compensation for what it would cost you to replace the size, brand name, and quality of the television today, which is on average $700 to $900. The same applies to computers and laptops, jewelry, and other basic items that depreciate in value but are more expensive to replace. This is generally the insurance that will take place unless you specify otherwise. However, it is still always a good idea to check and double check that you have authorized this type of insurance coverage.

Don’t get excited when there is a knick in one of your laptop cases upon arrival. Your mover, under Federal law, has options when it comes to living up to the full value protection laws. The company can opt to repair the item if possible. The company might opt to replace the item with a similar item. In some cases, you can fight this if the initial item had substantial sentimental value or for career purposes you require the exact same item. The company might offer a cash settlement for the cost equal to the repair of the item, or the company might offer a cash settlement for the current marketplace value for you to replace it at will.

The moving company also has a right to limit their loss on your entire shipment, which can be over ruled by you provided that you claim in advance any and all articles that exceed $100 per pound. This can be tricky language for many of us, but for the most part you can assume that your finer jewelry, china, silver, antiques, any furs, and some family heirlooms, and in rare cases, laptops all fit into that category. When you and the moving company of your choice are settling the paperwork before the move, ask direct questions about this limitation and make sure that everything that qualifies gets listed and documented. Some items a photograph will suffice and other items a receipt may be necessary if you find yourself in court over your valuables that were lost or damaged. At least be sure you have photographic evidence.

The moving company that you are working with will set the price for the insurance plan coverage. Most of the insurance companies that underwrite the moving companies offer deductible plans to help offset the costs of purchasing mover liability insurance. Be sure that the moving company you work with is willing and able to explain their insurance plans to your satisfaction before finalizing any agreement.

Released Value Insurance

A released value plan is offered at no cost and covers very little under the current laws. For any given article or item within the movers’ possession that is either lost or damaged, the client has the right to collect only 60 cents per pound. A seven pound laptop, which is on the heavy end these days, would only be worth $4.20 in compensation under the released value plan. A ten pound stereo would be written off at $6.00.

There is no assumption made that you want this insurance plan. It is free of charge but you must specifically detail on the paperwork that you are interested in this plan over the full value protection plan. If you do not indicate that you would prefer the released value insurance, you will be charged for the full value protection plan and compensated under those laws in the event of loss or damage.

Each of these insurance plans is governed specifically by the Department of Transportation rather than under the U.S. Insurance and state insurance laws. Therefore, not all U.S and state insurance actions can be taken under the same assumptions as other types of insurance.

Third Party Insurance

Some clients opt to carry a third party insurance when moving. The moving company you select can help you obtain and should even recommend you carry third party insurance. Under a third party carrier, the normal applicable standards that reimburse 60 cents per pound of the shipment still apply, and the third party insurance then underwrites any and all claims thereafter. The moving company must provide you with a copy of the policy as well as any other pertinent paperwork as it applies to third party insurance. Third party insurance falls under state insurance laws.

Some homeowner’s insurance plans offer this type of coverage for no additional cost. If you are already covered, you can provide the moving company with a copy of this insurance plan. In other cases, you can purchase third party insurance on your own and provide the insurance company with the copies. Make sure you know what is covered, the details of filing a claim, and how long the turn around may be on larger items when making this decision.

Voiding Insurance Plans

There are some actions that you might perform that would completely de--validate any and all insurance claims. It is important that you understand the insurance policy and what the policy will not cover. For instance, do not pack anything perishable, anything that qualifies as explosive, dangerous, or hazardous in your belongings. Do not choose the released value plan and carry no other insurance if your belongings add up to more than 60 cents per pound. Always remember to write down the excessive value items, items valued at more than $100 per pound, and give the moving company a legible and neat copy.

You are permitted to file a claim against the moving company any time within nine months. Sometimes moving companies offer you a receipt to sign which includes a statement that you are releasing them from all liability. Read the fine print carefully and refuse to sign such paperwork. Some moving companies will try to get you to sign this paperwork before they have even opened the doors to the moving van. Always know what you are signing. Never sign anything that takes away your right to a claim.

Make sure that you report your losses immediately upon learning of them. The law gives you a full nine months. Those nine months start from the day your items are supposed to be delivered. If your move should have been completed on April 13th but the moving company didn’t get you your belongings until April 30th, your nine months started on April 13th.

Arbitration programs are required for all claims, and each interstate moving company is responsible for making sure that you have the appropriate information regarding their arbitration program. If you have not received a copy that is easy to understand and read, make sure you request one. If that request is not met, contact the Department of Transportation.

Special Considerations within the State of Florida

Florida has enacted a specialized act to help protect residents against fraudulent movers and to protect reputable moving companies against potentially frivolous lawsuits based on the actions of unscrupulous moving companies. The Florida Department of Agriculture and Consumer Services is responsible for the regulations involving moving companies within the state of Florida.

Basic Moving Insurance Tips at a Glance

While moving companies are required to carry insurance on your items when engaged in the act of moving household goods, your understanding of the policy is imperative and additional insurance coverage may be necessary.

Only about one in every three claims is fully recognized and honored. The more you have your paperwork and evidence in order, the higher your chances become. Basic liability will not cover your belongings in any reasonable monetary form. 60 cents per pound generally doesn’t cover a pair of blue jeans let alone a priceless antique or diamond jewelry.

When you declare the value of any given item, any negotiation will be determined by the value that you introduced to the moving company. In some cases, especially those of theft, you might need outside appraisals, photographs, and third party verification of the item’s value.

Replacement value coverage means that the moving company is liable for any item that is stolen or breaks. They are liable for the replacement value only. If they replace the item, you will receive a brand new item. If they offer you a cash replacement, you will receive the cash value of the item minus the depreciation value.

When the moving company is ready to depart, check over the list, make sure the boxes are in the same condition as they were packed, and make sure that everything is accounted for and in good condition. Before the mover starts unpacking at the final destination, go through the same process. Take responsibility for knowing what is going on and do not allow yourself to be bullied or hurried along.

When the mover starts bringing in your belongings, check each one. If something is broken, do not remove it from the package but declare it at the time, take photographs, and leave the package intact until you are advised by the insurance company to do otherwise. Never let the moving company leave until you are sure you have checked everything.

During this process make a list of the items that are damaged, missing, or otherwise compromised and produce this list to the person considered in charge of the move. Sign it, date it, and ask them to do the same.

Report to the moving company the next day to be sure that your claim is being processed. Do not wait any longer than 24 hours despite your busy schedule or your claim may be tossed out.

Make sure that you keep all the paperwork involved in the move, from start to finish, in one safe place until the issues at hand have been fully resolved.

Basic Terms for Good Communication

Bill of Lading—The list of all the items that you are claiming in the move. It should be an accurate list of everything being moved. This is also the receipt for the move and the contract which the move is handled under.

Extraordinary Value Article—Any single item that it valued at more than $100 per pound. Also known as High Value Article, these items often require additional insurance.

Hazardous Materials—These are materials that present a threat to either the movers, the drivers, to you, or to anyone who might come in contact with them. They are also considered dangerous to store at high temperatures, such as in a moving van on a hot day for several hours. Many common household items can be found on the hazardous materials list including but not limited to, explosives, compressed gas (like propane for grills) poisons, radioactive material, oxidizers, and flammable liquids or gases. Nail polish remover, paint, automotive repair and maintenance materials, lighter fluid, gasoline, propane cylinders, or paint thinners would be included on that list.

Intrastate Move—is any move that occurs within the same state without having to cross the border into another state.

Interstate Move—is any move that state lines are crossed, even if returning to the original state.

Tariff—A basic list that includes the moving company’s individually set list of rules and regulations, any additional services which are available and how much any additional charge is for said services.

Valuation—The agreed upon value of the entirety of your shipment.