Insurance Q&A

Aside from being a stressful and time-consuming event, moving is also a pretty risky ordeal. You’ll never know when your belongings will incur damages or even losses during loading and transport. That’s why aside from ensuring that you get the services of a quality moving company, customers should also look into the option of getting insurance for their household goods.

In this article we will highlight the most commonly asked questions about moving insurance.

Q: What is moving insurance?

A: Moving insurance refers to an insurance coverage of policy that will protect your personal effects (whether it be furniture, appliances, art pieces, etc.) during the course of your move. Depending on what insurance plan you avail, you can get compensation should you encounter any damages or losses during the relocation process.

Q: Where can I get moving insurance?

A: A lot of moving companies offer comprehensive moving insurance in their roster of services. However, you can also choose to get the services of an external insurance provider or carrier.

Q: What’s your best tip for availing insurance?

A: The number one tip we always say, is to get quotations from more than just one source. That way, you can compare and contrast their policies and price quotations.

Q: What is Basic Carrier Liability?

A: Moving companies are required by the Federal Motor Carrier Safety Administration to offer insurance coverage to their customers. When doing interstate relocations, they can only offer a package of sixty cents per pound per article ($0.60). However, this standardized amount only applies for long distance, interstate moves. Local moves and insurance rates will depend on what state you are on. For in-state relocations, basic protection can be as low as 30 cents per pound. This won’t be much if for example your 11-pound (expensive) entertainment system gets damaged.

Q: What is Declared Value Protection?

A: This is another type of moving insurance wherein the carrier will be liable for the entire shipment at a specific amount that was agreed upon. Usually it is equal to $1.25 per pound times the total weight. In the event that your items get damaged during transport or shipping, the settlement payment will be based on the depreciated value of the covered items.

Q: What is Lump Sum or Assessed Value Insurance?

A: This type of coverage is common for items of high value. Here, the weight of the items is not the main deciding factor, but the actual value. This is highly recommended for items such as antiques, paintings, sculptures, and other items that have a high value. Lump Sum insurance is usually purchased based on $1,000 increments and should be recorded prior to the move in the bill of lading.

Q: What is Full Value Insurance?

A: This is considered as the type of insurance with the best coverage because they also include deductibles. Full value insurance includes items that are lost, damaged or destroyed. It also includes the cost for repairs or replacements. However, it is important to note that most moving companies don’t offer Full Value insurance. If you want to avail it, you need to seek out third party insurance providers.

Q: Who will pack my belongings?

A: This depends on the moving company you hire and the insurance provider you avail. Some companies offer packing services as part of their insurance packages, while others do not.

Q: Is it possible to get insurance for just a few of my items?

A: Of course! You can avail of insurance just for the items that you deem of value to you.  

Q: How can I pay for insurance? What are the usual payment methods?

A: Cash is a commonly accepted method of payment although a lot of companies also offer credit card options (MasterCard, VISA, Discovery, etc.) and personal checks. Make sure to ask your moving company about your options.

Q: How many movers (moving crew) should I expect?

A: Whether you avail of insurance or not, the crew members will depend on how many or how much you will be transporting. For your reference, it is very common for companies to send 3 to 4 movers to one project.

Q: Can I pack my own boxes?

A: Yes you can. This will definitely save you up on packing costs. However, if you’re availing of Transit Insurance, double-check if it covers the boxes that pack yourself.

Q: Do I need to make a list of my items?

A: Definitely! List down the items you want to have insured and write down their corresponding value. You should also write down their estimated weight. This is important to do before making any insurance-related decisions.

Q: What happens if I avail of third-party insurance?

A: Third-party insurance providers have varying rates depending on your region and which moving company you will be using. Insurance companies calculate your risk based on the location of the move and by the reputation and credibility of your mover. Some moving companies already have tie-ups with third-party insurers so you can ask about that too.

Q: How can I limit my loss and get better rates?

A: First you need to decide how much loss you can actually afford. If losing your items will be detrimental to you, avail as much insurance as you can afford. You can get a better rate with a $1,000 deductible but not everybody is willing to spend on that.

Q: Any tips on moving?

A: When it comes to moving and moving insurance, one of the best and most practical tips you can do is to make a comprehensive list of the items that you will ship. Know what you are moving. Make notes and even take pictures if necessary so that you will have a basis for comparison once they are delivered to your new home.

In addition, once they deliver your items, make sure to do a thorough check of each item before you sign any documents. If you happen to see damage or loss weeks after the move, and after you’ve already signed off that they are on the clear, you will have a very hard time in making your case and getting fair compensation.