Oct 18 | Posted by Barry

So you’ve just found a new house and the countdown to moving day is on. Between packing, updating addresses and work, you’re likely squeezed for time. The last thing you want to have to worry about is the risk of items damaged or lost in transit. That is why it’s important you have a basic handle on moving insurance and some of its peculiarities to avoid unwanted troubles.

It’s important to note the three property distinctions within your insurance policy that you should be aware of. Structural insurance remedies the cost of rebuilding your house or sections of it. Content insurance protects your belongings and items of extraordinary value. Third is liability insurance, which covers you against personal injuries or damages resulting from the occupation or operation of your property. Moving insurance pertains mostly to content insurance, but don’t let the other two fall by the wayside while organizing your move. Your policy might cover household items while they are in the movers’ possession. But if this is not the case, be ready to investigate alternative methods.

First and foremost, notify your insurer as early as possible. They will advise you on the next steps to ensure that you are never at a complete loss. Every situation is different and an insurance professional can help clarify any details about their coverage policies for certain cargo. I find its best to read some general information on company websites so that you can hone your time with these experts towards more specific questions.

For instance, how does your coverage change when you switch from a tenant’s policy to a homeowner’s policy? What are the exact differences between an insurance policy and a protection agreement? How is the total coverage split between the old house, the new house, and while your goods are in transit? Are there any actions that will void my coverage of certain goods? Last, ask your insurer about any deductibles they can offer.

Canadian law mandates that basic protection agreements from moving companies cannot be given at an extra cost to the consumer. As a result, however, moving companies will generally only reimburse you at a rate between 50 to 75 cents per pound – hardly enough to effectively compensate for valuables. Most will charge a premium for added value protection, also on a dollar per pound basis.

Two other options to consider are market value and replacement value coverage. For the former, the depreciated value of a damaged or lost item is used for compensation, but not the actual list price of that item when it was purchased. Replacement value coverage has a sizably higher premium, but it is the safest bet for ensuring that you are fully repaid in the event of accidents.

These last two are best when you have items of extraordinary value such as antiques, art or sculptures. Prior to arranging for such a premium plan, you first have to detail exactly what is to be covered. Keep a running list while sorting out what will and what will not be going to the new house. This list might also include object weights and inventory numbering so that nothing is lost. Pictures are always good to help categorize and in case you need to make a claim in the future. Assign each extraordinary item a replacement value and consult your insurance provider so that this appraisal is accurate. Then, make sure to review the items of extraordinary value with the moving company beforehand and ask about their price ceilings for cargo protection.

For valuables, you may wish to wrap and crate them yourself to avoid any problems, keeping in mind that companies have different rules for owner-packed goods. In fact, most movers will stipulate that if certain objects like lamps, figurines or sculptures are not put in boxes then no coverage will be provided. Check the fine print as rules vary amongst movers when it comes to reimbursements towards owner-packed goods.

And even then, there are some items that will almost never be insured, packed or unpacked. These include papers and lightweight items of extremely high value such as jewelry, coins, stamps or bank notes. This classification also includes items of sentimental value such as photographs, journals or software data on a computer. The best course of action is to keep these on you throughout the move.

Things get even trickier when it comes to electronics. The interior workings of televisions, applications, stereos or others of this kind are not covered because it is impossible to determine if any damage occurred as a direct result of improper handling. You can avoid problems here by taking photos prior to the move and noting any physical harm to the exterior afterwards.

The last classification to be mindful of are dangerous goods. The specifics here are outlined under the Dangerous Goods Act, and it is crucial that you remember to not pack these items yourself. This action can void your insurance coverage and make you liable for any damages to the crew or truck. Some moving companies may refuse to handle dangerous goods, so notify them beforehand to clarify.

Aside from cargo particulars, you also have to consider the distance of your move. Rates will vary depending on whether it is local or long distance. For the latter, you’ll also have to investigate getting additional storage insurance, which is likely not covered under your homeowner’s policy.

Again, the moving process is laborious, but that doesn’t mean it has to be utterly nerve-racking. The key, as always, is diligent preparation well in advance (ideally eight week prior). Organize your cargo and talk things through with your insurer and moving company. And if you’re looking for a good mover or are still at a loss, you know who to call.