Does Moving Insurance Keep You Covered?

By Scott Boone

Image courtesy of Scott's Discount Movers

While moving can be a stressful undertaking, one of the things consumers shouldn’t have to stress over is whether their belongings will get where they need to go without being damaged, lost or destroyed.  Murphy’s Law being what it is, sometimes your lucky rabbit’s foot fails to save the day and tragically, something packed in the back of a moving truck gets zapped. While most people point the finger at the movers when such things occur, the bottom line is like all the king’s horses and all the king’s men. Playing the blame game will not put Humpty Dumpty back together again.  That’s when you’ll find out about the ins and outs of moving insurance.

Never Assume Your Belongings Are Fully Insured

Many people assume that belongings put in the back of a moving truck are automatically insured by the mover.  That assumption can cost them big since movers are only required to reimburse consumers for items lost, damaged or destroyed at the rate of sixty cents per pound.  This means if your friendly, local mover creams your $3,000 80-inch Smart TV, you can be reimbursed as little as $6.00.  That’s the bad news.  The good news is it doesn’t have to be this way.

There Ought to be a Law

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The US Department of Transportation holds registered moving companies liable for the value of goods they carry.  This means they can’t damage, destroy or lose your goods and then claim they are not responsible.  That being said, the rule only applies to moving companies registered with the Federal Motor Carrier Safety Administration (FMCSA). If your mover isn’t registered by the FMCSA, then all bets are off. Once you have the DOT number, you can go to the FMCSA website to find out if there are any complaints or safety violations that have been filed against any registered moving company.  https://ai.fmcsa.dot.gov/hhg/search.asp

Any registered mover that transports goods across state lines is issued a DOT number.  Regulations for movers transporting goods within a state vary.  Check with your state’s attorney general as to regulations concerning movers who only operate within the state.  While this will help you weed out unscrupulous moving companies, it still won’t necessarily help you get compensated for anything lost, damaged or destroyed.

Moving Insurance to the Rescue?

Ask most movers whether they can insure the value of your cargo, and they will offer you one of two options:

      1.      Released Value – While this coverage adds no extra cost to your move, it also comes with the caveat that compensation will only be paid at sixty cents per pound.

      2.      Full-Value Protection – This covers the full value of goods shipped.  It also allows the mover to repair, replace or offer cash for any item that is damaged, destroyed or lost.  It can also mean paying an additional fee to the mover for this coverage.

Mover as Insurance Agent

If your mover offers to sell you insurance to cover the full-value of your cargo, you need to ask whether the policy is offered in-house or through a third-party.  This is important since some movers can and do offer in-house policies.  Be wary of this kind of coverage, because if you don’t read the fine print, you could wind up paying a large deductible if you make a claim, or you could find out the policy is completely bogus. 

If the insurance being offered is through a third-party, make sure you read the policy thoroughly before you sign on the dotted line. While legitimate third-party moving insurance can be worth its weight in gold, fraudulent moving insurance companies are out there. While these firms are more than happy to provide you with a policy and process your payment, they could refuse to process your claim if you should experience a loss. 

Speaking of processing a claim, third-party coverage is based on the declared value of your goods.  Determining the value of your possessions is trickier than you might think.  While you may have paid $1,000 for that antique desk, that doesn’t necessarily mean you will be paid $1,000 if it is lost or destroyed.  Even if you are paid fair market value for any goods that are lost or destroyed, you could wind up waiting a long time to get reimbursed.

Image courtesy of wikimedia

That’s another reason you need to thoroughly vet any moving company you hope to employ.  While that smiling company rep might charm you into working with a particular mover, that doesn’t mean you can expect to ever see or hear from the rep again.  The only way to determine whether you are dealing with a reputable mover is to check them out online.  Go to consumer protection sites like the BBB and Angie’s list.  Enter the name of the moving company into a search engine with the word Complaints as part of the search term and see what comes back.

Never trust written blurbs on a website purporting to be testimonials from satisfied customers. These can all too easily be created by the website owner.  Video testimonials while better, should never be used as the only source of verifiable information about the mover.  Always ask for and check out references from people who have recently done business with the mover.

Take the time to thoroughly investigate a mover, as well as asking about their policies of dealing with claims for cargo that is damaged, lost or destroyed.  Find out the kind of loss ratio they have had in the past and ask how long it will take to get reimbursed if the worst happens.  Get this right, and you can rest assured that should calamity occur, you will be properly compensated for any loss.  Get it wrong, and the only thing you can insure is an upcoming heartache if your mover mishandles your possessions.

With over 5,000 moves, Scott's Discount Movers has handled moves of all sizes, including local and cross country. If you are looking to move your home or office, you can depend on Scott's Discount Movers to provide a stress-free relocation.