The Truth About Moving Company Insurance: Repair, Replace, or Pay for Damaged Belongings?
When you hire a moving company, it's common for you to wonder what happens if any of your items arrive at your new home damaged. Is the company required to repair, replace, or pay for the value of these items? The answer to this question is often contingent upon whether you have selected Full Value Coverage or Additional Valuation Coverage, which comes at an additional cost.
Do Moving Companies Really Have To Repair, Replace, or Pay for Damaged Items?
Unfortunately, if you have not added Full Value Coverage or Additional Valuation Coverage, the moving company may only be liable for a specific per pound payout, which can vary depending on your state and the legitimacy of the moving company.
Personal Experiences with Moving Company Insurance
I operated a moving company for many years, and I can confirm that the insurance aspect is often seen as a significant scam. For example, when my team "lost" a jewelry box containing a Rolex watch, we were faced with a challenging situation. The customer had paperwork and insurance to prove the watch was in his possession, yet he had not purchased additional insurance. The company owner was unwilling to pay more than a few dollars in compensation.
We eventually located the watch, but thanks to the customer's grace, the person who stole the watch returned the item at a premium price and was subsequently terminated for the theft. Even though we retrieved the watch, it still serves as a stark reminder of the challenges that can arise when additional insurance is not purchased.
Insurance Offered by Moving Companies
When you do purchase additional insurance from the moving company, they typically offer different tiers, with the coverage increasing gradually as you invest more. However, even with this coverage, the company will fight tooth and nail to avoid paying out of pocket. This is because the insurance premium is often used to cover general company liability, auto insurance, and the actual property being moved, i.e., furniture.
How to Avoid Future Problems
To protect yourself and ensure that your belongings are adequately covered, it is crucial to request a certificate of insurance from the moving company before the date of your job. This document will provide you with all the necessary insurance information in case you need to resolve a matter in civil court. By knowing the company's insurance details in advance, you can be better equipped to deal with any unforeseen issues that may arise during your move.