Insurance for your goods while in transit is referred to as cargo (or transit) protection.  All licensed long distance moving companies carry many types of insurance coverage, one of them being cargo insurance.  Many local non-licensed moving companies do not, and in some jurisdictions, even licensed movers do not. 

What movers offer you is an option to be compensated for any loss or damage to your goods while being transported by them.  They are not selling you insurance – they are not an insurance company. 

They are selling you coverage and accepting some degree of liability in return for a premium paid.  Most movers will ask you if you wish to purchase additional protection coverage beyond the basic coverage covered in the price of the moving quote, and to what extent.

“Basic Coverage”:

Lost items and damage can occur on any move.  Every moving company is required by law to include basic (or standard) protection included in their moving rates, with no added cost to the consumer.  To the consumer, this represents compensation of 60 cents per pound per article).  For example, if damage or loss occurs to an item weighing 20 pounds the mover’s liability would be $0.60 x 20 = $12.00. 

If an item is broken that was packed in a box, some movers may compensate you for the full weight of the carton.
Please always remember that owner-packed boxes, versus professional mover packed boxes, are never covered for insurance unless there is visible damage to the box being mishandled or dropped If the item happened to be a figurine (worth $200.00) you would not have adequate coverage, even though the mover did their part in lawfully compensating you! 

If you happened to have packed the carton yourself it is quite possible you would get nothing for your figurine, as owner-packed cartons are usually not insured. 

This is because consumers in general do not pack cartons in the same professional way that moving companies will pack your goods.  If the moving company did pack the carton then they would be liable to compensate you, but again, at only $0.60 per pound per article.

As you can see from the above example, you do not have adequate insurance to cover your loss.  You may already have extra coverage through your homeowner’s insurance policy, but check to be sure.

“Added Value Protection” Coverage:

This is extra coverage purchased from the moving company to increase your compensation should damage or loss occur.  The moving company will charge an extra premium to increase the compensation coverage from $0.60 per pound per article to $2.00 per pound per article.

This is a variable amount.  You would have to arrange the exact coverage you want with the mover.

“Market Value or Depreciated Value Coverage”:

For this coverage, the market value of the damaged or lost item is used.  It can sometimes be very difficult to properly assess the correct market value, whether from the viewpoint of the moving company or the consumer. 

This is not “Replacement Value” – it is the value of the actual item as it is today – whether it is in worn out condition or almost new condition. This type of coverage is declining in popularity and is usually replaced with “Replacement Value” coverage.

“Replacement Value”:

This type of coverage will compensate you for the full value of your goods if they were to be purchased new.  You will be paying a higher premium to have “Replacement Value” protection.

General Note

The cost to get cargo protection for your move can vary from no premium to several hundred dollars.  Each policy may also have some sort of deductible, from $0.00 deductible to $250-500.00.

Items Never Insured

Even if you have purchased extra coverage or just have the basic coverage movers offer, there are some items that are never insured while in the mover’s care.  In these instances you should try and take them along with you. 

Examples of these items are jewelry, stamps, coins, bank or mortgage papers. 

Another example would be an item having sentimental value, such as a picture or photograph.  Software data from your computer is another example.

The interior workings or hardware of appliances, televisions, stereos, etc. are not covered, unless it can be shown that the mover handled the piece improperly. 

This may not be proved unless there is obvious physical damage to the outside of the article.

If an article is not packed in a box it may also not be covered, if it is damaged.  This would also apply to glass plating from a china cabinet or plate glass from a coffee table, end table or dining room table.

All largre sculptures, figurines, pictures, mirrors, lamps and other loose breakables not packed in a carton may also not be covered.  You should check with your mover for clarification. You can pay extra to have the mover crate your item.

Contents of boxes are not covered unless the mover has packed and unpacked them. 

If there is obvious damage to the outside of the carton the contents may then be compensated, but only according to the terms of the insurance coverage you chose.

Complete sets of furniture and appliances are not covered.  For example, if you have a couch, loveseat and matching chair, and the loveseat gets a rip in it’s arm, the mover is only responsible to fix or compensate you for the loveseat. 

If the fabric is no longer an exact match (after it has been fixed) with the other pieces in the set, the mover does not have to compensate you for the complete set.

Extraordinary Value

Any items of extraordinary value must be declared to the movers.  This could be an article such as a sculpture, painting, or antique piece of furniture, etc. that is worth a great deal of money. 

Even though you have cargo protection there is still a limit (or ceiling) as to how much the mover would be required to compensate you, should damage or loss occur. 

You may even wish to have the piece wrapped and crated to ensure as much physical protection as possible.

If you think the value of the piece goes beyond what the mover can offer you in terms of protection you may wish to consult your own insurance company for extra coverage.

 Dangerous Goods

Do not pack any item classified as dangerous under the Dangerous Goods Act.  If any damage to your items or the truck would occur as a result of moving a dangerous good in your shipment, your insurance coverage would become void, and you may even be liable for damages suffered to either the truck or the crew handling the goods.  You would not even get the basic coverage of $0.60 per pound per article under basic insurance.

Storage Insurance

If you store your goods in a storage warehouse facility you may have to buy additional storage insurance, if your goods are not protected under your homeowners’ policy.  Your mover can arrange this for you.  Please remember that the same rules about dangerous goods and extraordinary value also applies here.

General Note

Every moving company will charge you a premium for cargo insurance.  Local moves versus long distance moves will have their own types of coverages that should be looked into. 

Before you move you should clearly have received answers to several questions from your mover regarding insurance. 

These questions are:

· What is my total coverage should damage or loss occur?

· What is the limit of compensation per article?

· Is there any deductible?

· Is the coverage basic, added value, market value or replacement?