Insurance Basics
Insurance Types and Options
Insurance Specifics
Purchasing Insurance
Coverage
Storage
Claims
General
Insurance Basics
What is insurance?
Insurance is a system of protection against loss in which an individual agrees to pay a certain sum for a guarantee that they will be compensated under stipulated conditions for any specified loss. It is a contract guaranteeing such protection. - Insured/Assured: a person whose property is insured against loss.
- Insurer: a company that insures others against loss or damage: underwriter.
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What is valuation?
Valuation is NOT insurance. Valuation is the amount of liability a moving company will accept for the value of your goods if damaged or lost while in their possession. Valuation is limited to the moving company’s own coverage, and in many cases is as low as $0.60 per lb. per item.
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Why should I purchase insurance instead of valuation?
There are many reasons to consider insurance instead of valuation:
-In the case of our All Risk insurance type, insurance provides a Full Replacement Value coverage, meaning it will compensate for the replacement value of the damaged or lost item. Valuation will pay the Actual Cash Value of the item, meaning, the depreciated value only. In case of our Total Loss Only type, insurance will compensate the total insured amount, less the deductible. Valuation programs offer limited coverage and will not provide full compensation.
-Insurance will offer protection against "Acts of God" (e.g. floods, tornadoes, lightning strikes, etc.) and will cover you specifically for the items listed on your contract at their replacement cost.
-When buying insurance, you will receive an actual Certificate of Insurance from a leading insurance company as a proof for your coverage, rather than a note on your Bill Of Lading when purchasing the valuation.
-When you purchase valuation, you purchase it from the vendor which provides you with the moving service. By purchasing actual insurance coverage, you are obtaining the service of an independent, third party insurance company.
-Insurance will cover your household goods for a period of up to 90 days (depending on your choice of insurance carrier) while in transit or in storage, including when being hauled by a subcontracted carrier different from your original mover. In addition, you can extend your coverage by purchasing a Storage Extension so your coverage will not lapse while in storage. Valuation does not offer this coverage.
-Our insurance offers coverage for Mechanical and Electrical Derangement and/or Pairs and Sets. Valuation does not.
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Aren't we covered by our moving company?
No, your items are not automatically covered by your moving company. The basic coverage the moving company is responsible for is $0.30 or $0.60 per pound per item depending if your goods are shipped within the state or across state lines. You can purchase valuation from your moving company, yet the cost for that valuation is often higher than insurance with full coverage.
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Doesn't my homeowner/renters' policy cover my items for the move?
Most homeowners' insurance policies do not provide coverage for your household goods for moving purposes. However, you should check with your own insurance agent to see if your existing homeowner/ renters' policy covers your goods while in transit. Be sure you have a written statement from your insurance company stating that your goods are covered while in transit. Often, you will find that your goods are covered against damages while the movers are in your home packing, but not while the goods are in the movers' possession.
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What is a deductible?
A deductible is a clause in an insurance policy stating that the insurer will pay that portion of a loss or damage remaining after a stipulated amount, to be paid by the insured party. When you purchase insurance from us, in case of a claim, you are responsible for any loss up to the chosen deductible amount. The insurance company will compensate you, based on the Terms and Conditions, for any amount above your deductible.
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What is the deductible on my moving insurance?
In most cases, we offer several levels of deductible: $250, $500, $750, $1,000, $1,500 and $3,000. The deductible you choose determines the cost of the insurance you are seeking to purchase, and is a one-time deductible and NOT per item claimed. Please choose a deductible that best meets your needs. Remember, a higher deductible will reflect a lower cost, and vise versa.
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What is a Certificate of Insurance?
A certificate of Insurance is a document which includes the information you have entered on your insurance application and the terms and conditions you have accepted for this insurance. It has your customer ID number and the Certificate ID assigned by the insurance company. This certificate serves as your proof of insurance coverage.
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Insurance Types and Options
Do you provide coverage for internal damage to electronics and mechanical items?
Yes we do. Unlike other insurance agencies, we offer Mechanical and Electrical Derangement coverage, which covers against any internal damage to your electronic or mechanical items being moved where no physical damage is apparent. This coverage is available only with the All Risk Insurance option and you can add this coverage when completing the application for moving insurance on our website.
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Do you compensate for an entire set or pair if only one or a few items of this set or pair are damaged or lost?
The basic insurance option does not offer this coverage. However, we offer an additional coverage called Pairs and Sets which will compensate you based on the value of an entire set or pair, even in the case of only one item or a few items damaged or lost. This coverage is available only with the All Risk Insurance option and you can add this coverage when completing the application for moving insurance on our website.
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What is the All Risk insurance type?
All Risk insurance provides coverage for individual insured items or your entire shipment for all types of damage or loss, unless specifically excluded on our Terms and Conditions.
Our All Risk coverage allows for two purchase options:
- Full Replacement Value - Valued Inventory
- Full Replacement Value - Lump Sum
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What is the Total Loss Only insurance type?
A Total Loss Only (TLO) is an insurance type that will compensate for damages only in case of 100% damage or loss to the shipment. This type of insurance will not compensate for individual items damaged or lost.
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What is Co-Insurance?
Co-Insurance is a form of property insurance in which the insured shares in losses proportionately to the extent that the amount of insurance falls short of a specified percentage of the value of the insured property. For example, if you insured your goods for $10,000 while the entire actual value of the goods is $100,000, your proportionate claim settlement amount (in case of a claim) would be 1/10 of the actual value. For example, a lost item worth $6,000 will yield a settlement in the amount of $600 (minus any deductible, if applicable).
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Insurance Specifics
Why do we need to complete an itemized valued inventory?
An itemized Valued Inventory list is only required for the All Risk type of insurance. In order to properly insure your items for full replacement value, a Valued Inventory list is required. This allows you to accurately determine the value of your goods in the case of damage or loss and provides the insurance company with a list of goods to be covered. In the event that you do experience loss or damage to an item, you can either produce a purchase-receipt for the item, or the insurance company can verify the replacement value of the most common items in your home.
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What is a "High Value" item?
A High Value item is any single item whose replacement cost exceeds $500.
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If I purchase the Mechanical and Electrical Derangement coverage, or the Pairs and Sets coverage, do I need to also list items covered under these options on the basic insurance application?
Yes. The Pairs and Sets, as well as Mechanical and Electrical Derangement options, require that items covered be listed on the basic insurance application as well. This is allowed for All Risk types of insurance, and is made available via our online application.
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Purchasing Insurance
How soon before my move do I need to purchase my moving insurance?
To purchase one of our All Risk insurance types we request that you obtain coverage for your goods no later than 2 days prior to your Packing Date. We define the Packing Date as the first date the movers will pack and handle your goods, and it could be the same as your moving date. Purchase of the Total Loss Only insurance can be done at any time up to the time the movers arrive at your home (the packing date).
In any case, insurance must be purchased prior to the packing date, performed by the movers.
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How much will insurance cost me? (How is the cost determined?)
MovingInsurance.com offers various competitive rates for your insurance. These rates represent the fair market value for the type of insurance and coverage you are seeking. The cost of the insurance, or premium, is based on a proportional rate, relevant to the declared value of your shipment and the level of deductible you have chosen. Rates vary depending on your insurance type (All Risk or Total Loss Only) as well as based on your household goods’ final destination, whether be locally, out of state or internationally. Please note that you can get a quote on our website by clicking here at any time.
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Can I pay for insurance with a credit card?
Yes. We accept most major credit cards: MasterCard, Visa, Discover, and American Express.
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Can I pay with a check, PayPal account, or have the cost billed to me or my employer?
No. The only form of payment we accept at this time is major credit cards.
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How can I purchase insurance from you if I do not have access to a computer or to the Internet?
In such a case, please call our office and explain your situation to our customer service representative. We will assist you in completing your insurance application. However, please remember that we will need to fax or mail you the Terms and Conditions for your insurance, and this will need to be reviewed and signed before we can complete your application. We also charge a processing fee, separate from your insurance premium, for policies done by a customer service representative.
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Can my request for insurance coverage be denied?
The insurance company reserves the right to review each insurance application and deny coverage should it realize any inappropriate conduct has been taken by the insured, or due to de-activation of the moving company you have chosen for your move. However, this rarely happens, and as long as you have followed our instructions you can rest assured your moving insurance will be accepted and rendered valid.
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What if I need to add or eliminate any items on my inventory?
While you are in the process of completing your insurance application, you may add and change your inventory as you wish. When you begin the application on our site, we create a login account for you, which will allow you to start an application, come back at a later time, and complete it. Once you have completed and purchased your insurance, should you need any changes made, please contact our office.
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What if I change my moving date?
If your moving date has changed, please contact us, via phone or email, indicate the correct date, and we will make the necessary change. Changes can be made only in the case that the move has not occurred yet.
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How long after completing and purchasing moving insurance will I receive the Certificate of Insurance?
Immediately. When you complete the transaction on our site and pay with your credit card, your confirmation will appear on your screen with an approval code, as well as a link that will allow you to download the Certificate of Insurance in a PDF format. Our system will also send you an immediate email, titled "MovingInsurance.com Confirmation", which has the Certificate attached to it as well. If you do not have the appropriate software to view the Certificate, we provide a link to download this software for free.
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What happens if I change my moving company prior to moving date?
In such a case, you need to contact us immediately. If the new moving company you are using is a certified moving company in our network, we will make the change and your insurance will be valid as before. If the company is not yet a certified affiliate in our network, we will need some information from you so we can start a process of qualification, and hopefully sign them up. However, if the new moving company is not qualified or does not wish to participate in our network, we will cancel your insurance and charge a $50 cancellation fee.
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Can I cancel my insurance?
Yes. You can cancel your insurance, as long as the move (packing or loading) has not occurred yet. You need to contact our office and provide us with a written request to cancel your insurance (email is acceptable). Your insurance coverage will be cancelled, and we will refund your credit card, minus a $50 cancellation fee.
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Coverage
Are there any items not covered under this insurance?
There are several items that cannot be covered under our insurance coverage. Please refer to the Terms and Conditions page for more clarification.
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Can I insure my goods for sentimental value?
Our insurance does not cover household goods for sentimental value. For example, a wedding photo album will be covered only for its commercial value, not its sentimental value.
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Can I purchase insurance only for specific items?
Yes. Unlike other insurance agencies, our insurance allows you the purchase of insurance for specific items. You can do so by choosing the All Risk, Full Replacement Value - Valued Inventory option, and listing the items you want to insure. However, please remember that with this insurance option, items not listed are not covered.
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What are the minimum and maximum insurance coverage amounts allowed?
There is no specific minimum amount of coverage. However, our minimum premium is typically based on $10,000 worth of coverage. In other words, for any declared value lower than $10,000, your premium will be determined as the minimum premium available. Also, with some insurance applications, you may need to contact us should you desire to purchase insurance in excess of $150,000 worth of goods loaded onto one truck.
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Can I insure my automobile?
Yes, you may insure your automobile while being shipped to your new residence. Please keep in mind that there are limits on coverage for autos three (3) years old or older. Coverage will exclude dents, chips and marring unless noted on the exceptions inventory performed by the mover.
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If I pack my own boxes, are the contents covered?
Boxes, cartons, or containers that are not packed by a Moving Insurance, LLC approved and listed affiliate are considered Packed By Owner (PBO). Any damages incurred to PBO items will not be compensated for in the event of a claim. Any loss for an inventoried box, carton or container MUST be noted on the paperwork, and signed by both the customer and the driver at the time of delivery for such a loss to be considered. Proof of ownership may be required, and compensation would be no more than $250 for the contents of that missing box, carton, or container.
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Can I purchase insurance if I am moving myself and not using a moving company?
No. We do not sell insurance policies if you are moving your own goods or driving your own moving truck. In order to sell you moving insurance we require that you use a professional moving company which is registered in our network.
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How do I determine value on my household goods?
Here are some methods:
1. Review the estimate you have received from your movers and look for estimated weight (in pounds or lbs) or estimated volume (cubic feet or CF). If the estimate is based on volume, multiply this figure by 7 to arrive at an estimated weight. Once you have a weight figure in pounds, multiply it by 6 to arrive at a required declared value for your shipment. For example, if your shipment's estimated weight is 3,000 lbs., the required declared value is $18,000.
2. Choose an average 'value per room' in your home and multiply this value by the number of rooms. For example, $5,000 in average per room, multiplied by 7 rooms = $35,000 in declared value.
3. Think of the amount of compensation you would need to receive in order to replace your household goods if the entire shipment had been demolished and use that number as your guideline.
4. Simply go around your home and list the items with their individual value, as best as you can estimate or guess or based on actual purchase receipts, and add it all up to arrive at a total declared value.
5. Use the Internet to research and find the value of your goods. By utilizing search engines and indicating the brand name or type of item you are shipping, you may be able to find the value of this/ these items.
Please remember that if you choose the Full Replacement Value - Lump Sum option, we require your declared value to be no less than the weight of your shipment times 6.
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Storage
Will my items be insured if my shipment goes into storage at a moving company's facility?
Your goods will be covered if delivered to a professional moving and storage facility. The costs will vary depending on the length of time in the facility.
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Will my items be insured if my shipment goes into self/public-storage?
No. Your insurance coverage ends when your goods are delivered into self-storage. Any damaged or missing items must be noted at this time on the delivery documents in order for your claim to be considered.
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Is my shipment insured for mold and mildew?
Mold and Mildew damages are not covered under our insurance coverage.
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When does coverage to my household goods start and when does it end?
Coverage of your goods starts when the movers arrive at your home, whether it is for packing or for the actual move. Your goods are covered for a period of 90 days if stored at the moving company's storage facility (SIT - Storage In Transit), as well as for the move out of storage. Additional stay at the storage facility requires additional coverage. The coverage ceases when your move is complete and when the goods are delivered to your new home.
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If my goods remain in storage for longer than 90 days, can I get the coverage extended?
Yes. You can extend your insurance on a monthly basis, for as long as you need. Please remember that it is your responsibility to extend your coverage. Insurance will not be extended automatically. You can extend your coverage by logging to your account at www.MovingInsurance.com and choosing the "Purchase Storage Extension" option.
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Can I purchase coverage for my goods if they are being moved out of storage?
Yes. However, please keep in mind that if no previous coverage was provided by us for these goods, unless the items and boxes are being re-inspected by the movers and a new inventory is provided, this insurance will be limited in coverage since it will consider all items to be either Packed By Owner (PBO), or as Condition Unknown.
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Can I purchase coverage for my goods if I am loading and unloading my goods into and out of a rented container, using a mobile storage service company?
Yes. However, please remember that should your goods be loaded and unloaded by yourself and not by a professional moving company or service, this insurance will be considered a Total Loss Only insurance.
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Will my goods be covered if they are being picked up one day at our origin address, kept on the truck for over-night storage, and delivered to our new destination the next day?
Yes. Your goods will be fully covered for such a situation, as long as the truck is being parked in the approved movers’ facility and in the Care, Custody, and Control of the movers at all times.
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Claims
How do I file a claim for damages?
Filing a claim can be done online using your account login information. Instructions for filing will be included on the claim form. General information required are the dates of packing, loading and delivery, the moving company which performed the move, and a description of the damage being claimed.
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How long do I have to file a claim?
You have 45 days from the delivery date on the signed delivery documents to submit a claim.
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How does the claims process work?
Once the claim is received by the insurance company’s claims department, you will be contacted within seven to ten (7-10) working days. You may be required to provide additional information, such as copies of signed delivery documents. The claims adjuster will determine if it is necessary to have a professional inspection conducted to determine transit-related damage. If this is necessary, they will inform you of who will be contacting you within a specified period of time.
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How long does it take to settle a claim?
Most claims are settled within 45 days or less, provided that all documentation has been sent to us by you and your moving company.
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In case of a claim settlement, am I being paid by both the insurance company and the mover?
No. In case of a claim settlement, you can collect payment only from one source, the insurance company or the moving company.
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What is considered proof of ownership of my items and how do I establish it?
Proof of ownership could be purchase receipts, appraisal notes, estimate or bid notes, as well as pictures taken of the specific items insured while in your possession.
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Do I need to take pictures of my items?
It is not required to take pictures of your insured items, but is recommended, as it will establish proof of ownership, as well as proof of condition to the items. If you take pictures, we suggest you take pictures from different angles to cover all aspects of an item.
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Do I need to produce receipts in order to prove the value of the items?
You do not need to produce receipts in regards to the value of the items when you purchase your policy. However, in case of a claim, proof of value is required on all items valued at $5,000 or more. Acceptable proof of value is either a purchase receipt or a certified appraisal.
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General
How do you determine which moving companies to include in your system?
Each company that applies to become an affiliate on our system is being checked for their relevant state and federal moving licenses, their valid liability, auto, cargo, and warehousemen insurance policies, their previous loss history (in terms of past claims), Better Business Bureau record (although we do not require they be a BBB member), and their general moving experience.
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What if the moving company I am using is not listed on your system?
In this case you can submit the information of this company to us and we will initiate their application process. We need to receive their legal name, physical address, telephone and fax numbers, relevant state or federal licenses, their web address, and a contact person. It takes approximately 5-7 business days for us to qualify a moving company, and although there is no cost to join our program, moving companies are required to sign and agreement with us.
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Do you rank moving companies on your system based on their quality and performance?
We do have a process to rank moving companies on our system; however, this process is internal and not open to review by the public. We rank moving companies first and foremost based on their loss ratio (paid claims vs. collected premiums), but also consider the number of insurance certificates sold to each company, the average premium per certificate, and average number of certificates sold in a monthly period.
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Are insurance rates different from one moving company to another?
Yes, insurance rates may differ from one company to another, based on the ranking of each company.
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Can you make recommend a moving company we should use for our move?
Unfortunately, we do not make recommendations on which moving company you should use. Every moving company certified and listed on system is a moving company we consider qualified and able to conduct a move to its full customers’ satisfaction.
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How often do you check the quality and license validation of moving companies on your system?
The quality of our moving companies is checked on an on-going basis, as insurance is being purchased or claims being filed by their customers. Each company’s record is being updated automatically by our system and in real time. Licensing and insurance validation is done on a quarterly basis and often we make physical visits to our affiliates’ offices and warehouses.
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