“Fully Insured” is misleading. Don’t be fooled!
The term implies you are fully covered for all loss and damage to your possessions. In fact, it only refers to the mandated minimum business coverage for liability, property damage and cargo as well as workers compensation that movers are required to provide.
Licensed movers must provide a minimum coverage of $1.00 per pound per article and include this in their rates to cover your household and personal items.
Greater protections can be afforded through the additional coverage and valuation most companies offer consumers. This additional coverage is either purchased directly from the mover and backed by his insurer or directly through a third-party insurer of your choice. In either case, the expanded coverage comes with an added charge.
This expanded coverage protects you against loss or damage subject to the terms and deductibles you request.
You must decide on the protection level you want prior to the beginning of your move and complete the ‘Order for Service’ form. This protection does not include coverage for self-storage.
Know your options.
Above all, we advise consumers to consider additional coverage and to check their homeowner or dwellers’ insurance for the protections their policies offer.
Option 1 – Legal Liability Coverage
Option 2 – Valuation
For an additional charge, some local and long-distance movers offer Increased Valuation Coverage through their insurance carrier. This coverage is like insurance in that it increases the mover’s liability from $1.00 per pound up to the amount you declare on the Order for Service form.
Coverage rates and limits are contained in the mover’s tariff, the legal document that states the price a moving company charges for your move. Items on the tariff can include transportation of goods as well as extra services. A tariff prices out your truckload in cubic footage or weight in pounds for a move from one destination to another.
Movers that offer this are covered by their insurance company up to the limit of cargo coverage per truck load. This coverage is in effect while your cargo is in transit or in storage with the mover, as long as you pay the premium. It is subject to the deductible and maximum coverage you have selected.
Option 3 – Insurance
There are two types of insurance coverage:
Transit insurance covers your goods during the move from the moment your possessions are placed on the mover’s truck until they’re delivered. Some policies include delayed delivery for limited time periods—in other words, if your transport load is in the mover’s storage for a short term known as Storage in Transit. Check the specific terms with the mover you are using.
Depository insurance covers goods placed into a mover’s warehouse for an extended period. You must declare the total value of everything that is being moved.