In the build up to office moving, there is so much to do and organize that it only stands to reason that some things slip through the net. All too often, we overlook the aspects most taken for granted, sometimes even deciding to ignore them. A perfect example is moving insurance.
Here are some interesting facts that you need to keep in mind:
- Moving companies offer what’s known as “Valuation Coverage”
- DIY packing can make your coverage void since packing errors may be yours
- Moving Insurance policies offer the most complete protection
What is Valuation Coverage?
Whether offering local or international office moving services, your chosen moving company is obliged to be insured. But Valuation Coverage essentially means they provide a predetermined limit of liability based on the perceived value of the loan being transported, and is detailed in your contract via your Bill of Lading. There are 3 ways that this limit of liability is calculated:
- Declared Value Protection – This is calculated by offering a specific money value per pound. So, let’s say the total weight of your possessions loaded on the truck is 10,000 lbs, and a rate of $6-$8/lb is set (a common standard), the moving company is liable to a maximum coverage of $60,000-$80,000 in the event of any incident. The problem is that this coverage does not necessarily reflect the actual value of the items in transit, so an item that is light but expensive is covered to the same degree as a $5 paperweight.
- Assessed Value Protection – You can get around the light-but-valuable issue by purchasing coverage based on the value of the load being transported. It’s usually available at a per-$1,000 rate, so you will pay a premium of $5-$10 for every $1,000 of value, with a range of deductibles. It is vital that the agreement is stated in the Bill of Lading, otherwise your moving company is under no obligation to honour it.
- Complete Value Protection – This is clearly the best of the three options, but also the least common to find. The moving company agrees liability to the full value of your possessions in transit, whether it is lost, damaged or completely destroyed, and even covers the cost of repairs or replacement. However, there are usually catches to the coverage too, so while a premium rate of $5 per $1,000 value on possessions with a combined value of $50,000 means paying an extra $250, minimum coverage limits and a range of deductibles.
What this means, of course, is that you should fully understand the conditions and scope of coverage before signing any contract with a moving company.
For the most part, the types of coverage that moving companies offer should be enough, but the Canadian Association of Movers (CAM) recommends that you check out the details of the coverage offered. CAM produced a brief overview on the matter, which is worth reading.
For more on our commercial moving services, call us on (647) 497-7747 or fill out our Contact Form for a free consultation.
