Confused about insurance

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brooke
Posts: 1
Joined: Mon Oct 01, 2012 10:51 pm

Confused about insurance

Postby brooke » Mon Oct 01, 2012 11:07 pm

Hi,
I have moved 10 times throughout my life. I have not moved within the past 7 years, so I do not know what the new laws are. I will be moving locally. I have lots of antiques so in the past I did purchase extra insurance or shipment valuation. Anyway, I met with a mover today who I really felt comfortable with and he told me that each of his trucks carries 50,000 dollars of insurance so I do not need to buy any coverage. He said that if anything was damaged he would cover it up to 50,000 a truck. He will be using two trucks for the move and I will be charged by the hour. Does this make sense to any of you? He said that the shipment valuation purchase is a sort of a scam. He said that moving companies cannot sell insurance.

BTY, even though it is a local move, they will be loading the truck one day and delivering the next.

BigLeeCalif
Posts: 4669
Joined: Sat Aug 23, 2003 5:59 pm
Location: Escondido, California

Re: Confused about insurance

Postby BigLeeCalif » Tue Oct 02, 2012 1:44 am

Why do you need 2 trucks? Are you in an area at either end where a large tractor trailer cannot access?

What state are you in? In California it is not unusual to pack and load one day, and deliver the next. The goods are kept on the same truck overnight.
and he told me that each of his trucks carries 50,000 dollars of insurance so I do not need to buy any coverage. He said that if anything was damaged he would cover it up to 50,000 a truck.


I'm not really comfortable with that statement. You should be able to buy valuation for whatever amount you want. Example if your shipment is estimated at 20,000 lbs, say using an off the wall figure of $5/lb, that would make valuation $100,000 if you wanted full coverage. Each truck might carry $50,000 of insurance, but that could be other than cargo. It could be pl/pd [personal liability/property damage].

I know of no small companies that can afford to give that type of free valuation.
"It is better to keep your mouth shut and appear stupid than to open it and remove all doubt" Mark Twain

Movinghelper
Posts: 1867
Joined: Tue Nov 10, 2009 6:00 pm
Location: Panama City Florida
Contact:

Re: Confused about insurance

Postby Movinghelper » Tue Oct 02, 2012 11:55 am

Valuation protection is not a scam. Even on local moves. Each truck is insured but this does not cover it's contents.
If you have antiques I would get the extra valuation. Read their contract very well and see what protection is afforded you in the written text. When in Arizona we had valuation protection and all of the necessary information on the contract.

Which company was it that said that. I think they are talking out of their you know what saying that.

I always explain and offer the individual moving some form of valuation protection even for a local move. Accident do happen and this way you are covered.

And they did say something correct. Moving companies cannot sell insurance. That is why it is not insurance but valuation protection.

Which state are you located in?
For more information on moving or to file a complaint go to http://www.protectyourmove.gov

1..NEVER PAY A MOVER A DEPOSIT FOR INTERSTATE MOVING! IT COULD BE THE START OF THE BIG SCAM
2. GO WITH IN HOME ESTIMATES ONLY.
3. DO NOT USE A BROKER.

Jeff.Walker
Posts: 1189
Joined: Fri Aug 28, 2009 10:32 am
Location: Central IL

Re: Confused about insurance

Postby Jeff.Walker » Tue Oct 02, 2012 12:38 pm

Hi brooke,
I agree with BigLee and Movinghelper above. Additionally, you may want to check out the article "I’m Covered for Damage, Right? which written by one of our volunteers that gives a good explanation to exactly why you would want full valuation on your items during your move.

BigLeeCalif
Posts: 4669
Joined: Sat Aug 23, 2003 5:59 pm
Location: Escondido, California

Re: Confused about insurance

Postby BigLeeCalif » Tue Oct 02, 2012 3:16 pm

He said that the shipment valuation purchase is a sort of a scam. He said that moving companies cannot sell insurance.


I must have reading in a hurry to miss the statement above, or I would have sent up the red flag warning. I think making a statement like that is irresponsible and in my opinion unethical.

The person making it either has no knowledge of transit valuation, or as movinghelper stated, talking out the methane expressway.

Movers are required by law to provide a basic level of valuation at no charge, and you, the shipper, has the option to purchase additional valuation up to and including full value zero deductible. Any mover that has the desire to fully disclose all pertinent facts will know this.
"It is better to keep your mouth shut and appear stupid than to open it and remove all doubt" Mark Twain

NYCMover
Posts: 579
Joined: Mon Mar 09, 2009 4:35 pm
Location: New York, NY

Re: Confused about insurance

Postby NYCMover » Tue Oct 02, 2012 11:16 pm

Hi brooke,

To expand on what the other contributors told you, which was all good - new regulations regarding shipment valuation were passed earlier this year and went into effect for all household goods interstate moves loading 5/15/12 or later. The new regulations state that every mover must include the cost of Full Value Protection ("FVP") of no less than $6 per lb. times the weight of your shipment in your first estimate. The estimate has to show you how much your move would cost including this coverage with no deductible, whereby you would be fully covered against any loss or damage up to and including the maximum amount of FVP coverage for the shipment. If a sales rep has not provided you with an initial estimate including $6 per lb. FVP coverage for your goods, they have already broken the law.

Regardless of how comfortable you might have felt with someone otherwise, their willingness to ignore this regulation or intentionally skirt the issue is a definite red flag. If they were ignorant of this regulation that is even more alarming as that would indicate that they are not too well-versed about interstate moving.

Good luck with your move! :)

promover2
Posts: 243
Joined: Sat Mar 08, 2008 9:29 am
Location: Tampa, Florida

Re: Confused about insurance

Postby promover2 » Wed Oct 24, 2012 8:50 pm

The issue here isn't whether you can (or should) "buy insurance". You can't buy insurance as we're not licensed to sell insurance. HOWEVER, the issue is whether you must declare a value of your shipment, and the answer to this is yes. We carry $250K on each truck, so $50K sounds a bit low, but if it was a straight truck, that may be suitable since the industry says the average shipment is worth $5.00-$7.00 per pound. So if the shipment weighs 10,000 lbs, it's probably worth somewhere from $50,000 to $70,000. Unless you have some "high value" items, which are anything worth more than $100 per pound. Typically artwork of any significant value falls into this category. I wouldn't go with someone who is saying "valuation is a scam". Bad sign.


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