NOTE: Here's a lot of good, general information about making sure your goods are protected while they are in transit.
Q. How do I calculate the value of my household goods?
A. Here are some simple steps:
- Make a list with four columns: items, number, weight and value.
- In column one, write down all your significant pieces of furniture, glassware, appliances, electronics, cameras, wardrobe boxes, etc.
- Beside each item, in column 2, list how many you’re moving.
- In column three, give an approximate weight for each.
- In column four, give each item or box on your list a replacement value. This is the amount it will cost for you to replace the item with another item of comparable material and quality. Remember, the item must be used for the same purpose (and not be an upgraded version). If something does happen and you purchased replacement cost protection, the amount identified to be reimbursed will apply to whichever is less – the cost to repair the damaged item or to replace it.
- Now add up the number of items, the total weight and the total value. Keep this list handy when you're interviewing moving companies. It will help you determine if the moving company is providing enough coverage for your goods.
Make sure you inform the moving company if you are moving high value items such as fine art, valuable instruments, furs or antiques. They will need to apply extra precautions in packing and insuring each item. Take photos or videos of all pieces, especially items of high or sentimental value. This additional information will help you and the mover to keep track of your inventory and will help if you need to make a claim.
Q. How important is it for me to have insurance on my goods while they are in transit?
A. It's extremely important to understand what your liability and your mover's liability is for loss of or damage to your goods while in transit. Watch this short video.
Q. I’m making a long distance move. Will Released Valuation protect my goods for loss or damage while they are in transit?
A. No, not in full. Released Value Protection is the basic coverage that is contained in all contracts for moving of household effects and is included in the cost of your move. Under released valuation, the mover’s liability is limited to $0.60 per pound ($1.32 per kg) per article for household goods under provincial conditions of carriage regulations. This would mean that a table weighing 100 lb. that is being shipped and which is damaged beyond repair would result in a cash settlement of $60 (100 lb. x $0.60 per lb.) even if the actual replacement cost of the table were $1,000. Released valuation limits your claim to a maximum amount which is based on the total weight of your shipment (including the weight of cartons). For example, in the unlikely event of a total loss, let’s say by fire, your maximum protection would be $0.60 per pound multiplied by the weight of your entire shipment If your shipment weighed 5,000 lbs., the maximum settlement would be $3,000 (5,000 lbs. x $0.60 per lb. = $3,000). Released valuation is generally not adequate because it provides only minimal coverage.
Consider these alternatives. You should check with your insurance agent to find out if you have alternate insurance on your household possessions that provides a complete, all risk protection during loading, unloading, transportation and storage. Most homeowner policies do not cover you in this situation. Occasionally, a special rider can be purchased from your insurer but the premium is usually higher than purchasing Replacement Value Protection coverage from the mover. If Released Valuation and your home insurance together are not adequate, then you should purchase the Replacement Value Protection that the mover is offering.
Replacement Value Protection is recommended to ensure your shipment is adequately covered during your move. It simply means that, if a damaged item cannot be repaired to its original condition, it will be replaced at today’s market price. This protection is limited only by the amount of valuation you select so it is important that you establish a realistic replacement value of all of your possessions. The only requirement is that your shipment be protected to a minimum of $10.00 per lb. multiplied by the actual weight of your household goods. For example, if the total weight of your household items is 5,000 lbs., the minimum replacement coverage can’t be less than $50,000 (5,000 lbs. x $10.00 per lb.). Your moving company can provide you with the cost for the Replacement Value Protection as well as information on declaring items of extraordinary value, including antiques and antique cars. A limited protection coverage applies to motor vehicles, trailers, campers, snowmobiles, motorcycles, boats or motors. These items must be shown separately on the Bill of Lading (the legal document that allows the mover to transport your goods). Protection is limited to the current market value of the year, model and condition. If you choose not to purchase (or you waive) Replacement Value Protection that the mover is offering, then Released Valuation is used. It is important that you understand your level of protection and that your bill of lading clearly notes the coverage you selected and is signed properly by all parties involved. A Carrier Liability Certificate should be given to you because it clearly defines the mover’s liability for your shipment. Your mover should explain to you in detail the conditions of the protection and the limitations of the coverage (if they are not, ask the mover for it!). He’ll then likely ask for your written acknowledgement that you understand the coverage. (Sources: Allied Van Lines Canada & Atlas Van Lines (Canada) Ltd.)
Q. Does my own Personal Home Owners policy cover my personal effects while being moved from one home to another?
A. The answer is...sometimes. Generally speaking, your personal property policy will cover your items while in transit to, and at another location in Canada which is occupied by you as your principle dwelling. However, it's very important to keep in mind that the limit of insurance for your personal property will be divided between the existing premises, the belongings that are in transit and at the new location on the basis of the percentage of the total value of the property at each location. Coverage only applies for a limited number of days (e.g. 30 - 90 consecutive days) from the day you begin removing your personal property from your principal dwelling and not beyond the date the policy expires or is terminated. Not all losses will be protected as the policy does limit and/or exclude certain types of losses, i.e. marring, scratching of any property, breakage of any fragile or brittle articles unless caused by an insured peril so it's always best to purchase coverage from your moving company. It's also important to remember that any claims made on your home owners policy will affect future premiums. The claims free discount that is applicable to most policies is between 10-20% of the total policy premium. They will also have a deductible of at least $500 and more likely $1000 today. Home owners are often quite unhappy when they are forced to make a claim on their own policy due to what is often perceived as negligent actions of the mover who is a paid professional. (Courtesy of McLean Hallmark Insurance Group Ltd. now known as NFP Canada)
Q. If our long-distance carrier got involved in an accident on the way and our goods were lost in a fire, would we be entitled to a refund for the shipping charges we (partially) paid for plus whatever insurance settlement for our goods or are we only entitled to the insurance settlement for the lost goods?
A. Shipping charges would not be included in the insurance settlement. If there was a separate charge for Coverage Protection, this amount would have to be paid in full prior to the insurer settling any amount for damages. It is not a legal requirement for the mover to return shipping charges. We believe that different movers handle this in a variety of ways, so it is difficult to give an opinion on which way is best.
Q. I plan to hide some valuables in my dresser drawer when I move. What happens if they go missing?
A. A customer has a responsibility in this matter. If you leave valuables hidden in a drawer or other location; then there is no way to account for those valuables. In other words, the value could be $100, $1000, or a diamond ring worth $1 million. There is only your word that the valuables were in a hidden place without some accountability. Now they are missing and, based on circumstantial evidence at best, someone is to blame. Based on the circumstantial evidence, it sounds like a crew member may be to blame but that is not entirely conclusive. It may seem like a logical conclusion. In many moves, there are often lots of other people (cleaners, painters, handymen, family members) with access but, frequently, the movers are first to be suspected. In some countries, a Rolex watch will feed a family or a village for a year. To leave such an item unattended, hidden and unaccounted for while work crews are present in what can be a busy, hectic environment is just not a good idea. Customers need to use some common sense and not leave such a temptation. From the mover’s point of view, a customer could name any amount as the value for an item not accounted for on an inventory or without any evidence as to the item or its value. Most movers will recommend that the customer contact the police. You can avoid such incidents by hiring a good mover. However, this reduces the risk; it does not eliminate it. Common sense dictates that you should never leave valuables hidden away in items being moved. Either take them with you or include them on the inventory. (Adapted from Ray DaSilva, Mobility Exchange, LLC)