More Moving Myths...Insurance?

It's time to move, so you hire a professional mover and then buy their insurance to protect you against whatever damage or loss may occur to your things while in the mover's control....right????  

Wrong! 

Movers don't sell insurance.  Think about it, you need a license to sell insurance!  Movers sell a product called VALUATION.  Valuation, while "insurance like" is distinctly different than insurance as it does NOT cover all risks.  Basically, unless you purchase the mover's valuation coverage the mover will provide you a bare bones 60 cents/lb./article coverage against damage or loss.  For example, a television that weighs 60 lbs. is destroyed and you have basic covearage you are going to get $36 for that television (60 lbs x .60 cents/lb).  Clearly NOT enough to buy a new TV.

Oh yes and one other thing.  Let's take that same television, works just fine at origin but at destination, it doesn't work.  No visable damage to the set either.  Good luck in trying to get compensation.  If you see on your movers write MCU on your inventory, stop them.  MCU is mover speak for MECHANICAL CONDITION UNKNOWN.  Basically they don't know if that TV worked going onto the truck, so if it doesn't work coming off the truck...can't be their fault, right?

As for your own homeowners policy covering you.  Talk to your agent well in advance of the move.  If they say you have coverage, get it in writing!  Most policies specifically exclude goods in transit.  Some homeowners policies do however cover goods while in transit.  Some will cover for an additional fee.  Those additional fees genearally are priced at or near what the mover will charge.  Also, if you do have or purchase additional coverage from your insurance company and you submit a claim...well, we all know what happens then.  You are subject to policy cancellation!

The best solution?  First hire only reputable movers...ones that will stand behind their work.  Then, do purchase the valuation coverage they sell but bear some of the risk yourself...select a deductible that you can live with.  Last, cross your fingers!