The Basics of Moving Insurance.
Many people underestimate the importance of insurance. However, when things go wrong, they find out to their dismay that financially they are not prepared to handle the situation. The same applies when goods are moved from one location to another. There is always a chance that during the transit, loading, unloading or storage; something may go wrong leading to the loss or damage of the items. This makes it important to have proper insurance in place. In the following paragraphs, the basics of moving insurance explained.
Valuation by the Moving Company
Buyers need to choose a particular insurance according to their specific requirements. It is important to not confuse the valuation done by the moving company with the proper moving insurance. Valuation only defines a limited liability on the part of the moving company and does not cover everything as much as the cost of the goods. Valuation option is offered without any extra cost and is not related in any way with the insurance option.
Types of Moving Insurance
There are about five types of moving insurance applicable according to Canadian laws. These insurance options include:
1) Basic Coverage
For moving companies, it is mandatory by law to provide a basic coverage to the consumers. The compensation rate for this insurance is $0.60 per good per pound. It means that if the good weighs 30 pounds then the compensation rate would be $18.
2) Declared Value Coverage
This insurance provides better coverage than the basic ones. The compensation is based on the depreciated value of the good and not on its current replacement value. In this case, for the liability amounting to $1000, the consumer has to pay $7. There is Lump Sum Value option where it is the consumer who defines the shipment value.
3) Full Value Coverage
Under this coverage, all the items can be covered up to the replacement value. The compensation may be different if the box was packed by the consumer and not by the mover. This makes it necessary to keep the damaged items in the original boxes until the claims are settled. For items lost or damaged in transit, this is the most comprehensive insurance coverage.
4) Extremely Valuable Items
These are the items that are defined having higher value than their weights, such as art collections, antique items, currency, silver and silverware, cameras, among many other such items. Compensation claims are only settled if all the items had been clearly identified and recorded as well as signed by the consumer before the shipment.
5) Homeowners Insurance
Traditional homeowners insurance also provides coverage up to the specified limit which can be about 10% of the declared value of the goods. The insurance must be valid when the damage or loss takes place. Its details must be checked before the shipment because it may be valid only on the home where the policy was purchased.
The damage or loss moving insurance claims must be filed within 9 months. The condition of all the goods must be checked immediately after delivery to ensure there is no damage or loss. It is a good idea to take photos of each of insured item before the shipment. This will help settle the claim easily when using moving insurance.
For additional information on moving insurance see our insurance coverage page