There are several types of insurance that movers should and typically have. These include general liability, commercial auto, cargo and workers compensation. Damage done to your belongings is not covered in any of those policies - unless the truck was wrecked while in transit.
By state and federal law, movers are required to provide customers with damage protection equal to $.60 per pound of contents being moved. Most states have laws that also require movers to offer consumers additional coverage that can be purchased. The cost is determined by a calculation based on weight and/or value of the contents being moved.
*Interstate movers (van-lines) are bound to federal law and have much stricter rules to follow when compared with local intrastate movers.
There are also third party insurers that will insure consumers' belongings during their move.
The two most common terms used to differentiate which insurance a consumer decides upon are released value and full replacement value protection. Released value is the free, $.60 per pound option and full replacement value is the paid option.
Full value replacement coverage generally costs about 2.5% of your stated value of belongings.
($100,000 value x 2.5% = $2,500) *This charge is in addition to your move cost.
That information alone is fairly complicated. The real confusion begins once the terms and conditions of the insurance are reviewed.
99.9% of movers and all third party insurers have terms and conditions with their insurance policies that include an extensive list of items and circumstances that will not be covered by the insurance. The top third party insurer's list of terms and conditions is six pages long.
A few of the most common exclusions are: Items valued over $100 per pound, jewelry, furniture made with pressed board, items packed by owner and fragile items that were not crated by a professional.
**See attachment just below for the full terms and conditions by Movers Insurance.com - The largest third party insurer for moving.
By state and federal law, movers are required to provide customers with damage protection equal to $.60 per pound of contents being moved. Most states have laws that also require movers to offer consumers additional coverage that can be purchased. The cost is determined by a calculation based on weight and/or value of the contents being moved.
*Interstate movers (van-lines) are bound to federal law and have much stricter rules to follow when compared with local intrastate movers.
There are also third party insurers that will insure consumers' belongings during their move.
The two most common terms used to differentiate which insurance a consumer decides upon are released value and full replacement value protection. Released value is the free, $.60 per pound option and full replacement value is the paid option.
Full value replacement coverage generally costs about 2.5% of your stated value of belongings.
($100,000 value x 2.5% = $2,500) *This charge is in addition to your move cost.
That information alone is fairly complicated. The real confusion begins once the terms and conditions of the insurance are reviewed.
99.9% of movers and all third party insurers have terms and conditions with their insurance policies that include an extensive list of items and circumstances that will not be covered by the insurance. The top third party insurer's list of terms and conditions is six pages long.
A few of the most common exclusions are: Items valued over $100 per pound, jewelry, furniture made with pressed board, items packed by owner and fragile items that were not crated by a professional.
**See attachment just below for the full terms and conditions by Movers Insurance.com - The largest third party insurer for moving.
| movers_insurance_-_terms_and_conditions.pdf |
Assuming an item is damaged and it happens to actually be covered by your paid insurance, the mover or insurer will then try to repair the item or offer a highly depreciated amount to cover the replacement value.
I understand why there are so many exclusions and why better options don't exist. 1 - Furniture is not made to be moved. 2 - There is no standard practice of manufacture and warranty of household goods. 3 - There are too many unknown variables that cannot ever be accounted for - i.e. - tight stairwells and weather.
The problem, in my opinion, is this is rarely discussed with consumers prior to their move.
Unfortunately, the only solution I can come up with is to make all consumers aware of how insurance actually works, to understand things will happen and to hire very reputable movers.
I understand why there are so many exclusions and why better options don't exist. 1 - Furniture is not made to be moved. 2 - There is no standard practice of manufacture and warranty of household goods. 3 - There are too many unknown variables that cannot ever be accounted for - i.e. - tight stairwells and weather.
The problem, in my opinion, is this is rarely discussed with consumers prior to their move.
Unfortunately, the only solution I can come up with is to make all consumers aware of how insurance actually works, to understand things will happen and to hire very reputable movers.