Step #4: Insurance for the Move

Insurance for the Move

There are three basic types of moving insurance:

Limited Liability

this is the minimum required by law. It is normally included in the base price of a move. You will receive 30 cents per pound (60 cents for long distance moves) for any lost or damaged items. Although this is better than nothing, 30 cents on the pound is not going to replace a lot. Consider how much your computer weighs. Is 30 cents per pound going to come anywhere close to replacing it? Not likely. If your moving van disappears, the company will often pay the maximum amount of $2,500 and that is it.

Lump Sum Value

this coverage requires you declare how much your goods are worth, then you pay a premium based on that amount. This type of insurance costs you more, but it will actually cover damages and loss. Depending on the premium, you could end up paying an additional $35 for $5,000 worth of coverage. This is well worth the investment should something go terribly wrong. Of course, valuation is not guaranteed. You must be able to show the damage was caused by the mover to get your money.

Full Value Protection

this is the top of the line insurance. This policy guarantees that the moving company will replace any damaged or lost item with a like item or it will pay you a cash settlement for the current market price for replacement, regardless of age or condition of the damaged item. The exact cost for this type of coverage varies from mover to mover. Check around.

You may also want to check out your homeowner's insurance. Some cover goods in transit. Or you may be able to take out a rider with your current company to cover your move if you property is very valuable.

Note that items that are packed by you are not covered by the insurance. Since the mover had no way of controlling the packing process if you did it, he or she is not held responsible.

In most cases, you have nine months to file a claim against your mover. However, it is best to call immediately upon discovering the damage or loss. The earlier you call, the easier it is to prove your claim. The mover is legally obligated to acknowledge any claim within 30 days and to resolve it or offer a settlement within 120 days.

But a bad move doesn't let you off the hook. You are always obligated to pay for the move, regardless of the amount of damage. If you can, work with the moving company to deduct the damages from the amount you owe. If this is not possible, and often isn't because of timing and insurance inspections, pay the mover for the service and pursue reimbursement for the damage.

The Language of Relo

Moving companies speak their own language. You need to know how to speak the jargon to understand what you are getting yourself into. Here are just some of the phrases and words you will hear once you start looking for a moving company:

Additional services

These are services such as packing, appliance servicing, unpacking, or stair carries that you request or need and may result in additional charges.

Advanced charges

These are charges for services performed by a third party at your request. These charges are paid for by the mover and added to your total charges.

Agent

An agent is a local moving company authorized to act on behalf of a larger, national company.

Bill of lading

Your bill of lading is the contract between you and the mover. It is also your receipt. It is important to understand everything on the bill of lading before you sign it.

Binding estimate

A flat price based upon a given inventory. No matter how long the job takes, the flat price is always paid.

Carrier

This refers to the mover that you are working with.

C.O.D.

Cash on delivery.

Inventory

The detailed descriptive list of your household goods showing the quantity and condition of each item.

Local moving

Local moving usually refers to moves of less than 100 miles within the same state. This type of move is based on hourly rates and is regulated by the states DOT or other regulatory body.

Long distance

These refer to moves of more than 100 miles within one state or moves between two states.

Non-binding or hourly rate

Customers are charged by the hour per man, per truck.

Order for service

This is the authorizing document that allowing movers to move your goods.

Order Number

This also refers to the Bill of Lading. It's the number used to identify and track your shipment.

Peak season rates

A premium rate is typically charged at certain times of the year, usually summer. You can sometimes get a break on fees in the winter.

Stair-carry charge

This is an extra charge for carrying items up or down flights of stairs.

Storage-in-Transit (SIT)

This refers to temporary warehousing of your goods pending further transportation or transportation to your new home if it isn't ready for occupancy. You may not exceed a total of 180 days of storage.

Valuation

The amount your goods are worth.

TERMS TO KNOW