We’re all human. Issues arise during a move. Understanding the protection for your belongings during a move can be complex, yet essential. The top complaint for CAM is when customers don’t know if or how much their personal items are insured during a move.
Standard Valuation Standard Valuation, also known as Released (or Standard) Protection, is the basic coverage included in all moving contracts for personal items and is part of the moving cost.
Under standard valuation, the moving company’s responsibility is capped at $0.60 per pound ($1.32 per kg) for each item for personal belongings under the rules of the province they are being transported. This means that if a table weighing 100 pounds is damaged and beyond repair, the moving company would only have to pay $60 (100 pounds x $0.60 per pound), even if the table’s replacement cost was $1,000.
Standard valuation sets a limit on your claim, which is based on the total weight of your items (including boxes). For instance, in the rare event of a total loss, such as a fire, your maximum coverage would be $0.60 per pound multiplied by the weight of your entire shipment. If your shipment weighed 5,000 pounds, your maximum payout would be $3,000 (5,000 pounds x $0.60 per pound = $3,000).
Standard valuation often falls short because it offers limited protection. Consider these other options.
It’s a good idea to talk to your insurance agent to see if you have additional insurance for your personal items that offers full, all-risk protection during loading, unloading, transportation, and storage. Most homeowner’s policies don’t cover you in these situations.
Sometimes, a special add-on can be bought from your insurer, but the cost is usually more than buying Replacement Value Protection from the moving company.
Replacement Value Insurance (RVI)
Should your existing home insurance and the Released Valuation provided by the moving company fall short, it’s advisable to opt for the Replacement Value Insurance offered by the mover.
Investing in RVI ensures that your belongings are sufficiently covered throughout your relocation
RVI guarantees that if an item is beyond repair and cannot be restored to its original state, it will be replaced at the current market value.
The scope of RVI protection is determined by the valuation you choose, making it crucial to accurately assess the replacement value of all your items.
The only stipulation is that your shipment receives at least $10.00 per pound of its weight, multiplied by the actual weight of your household goods. For instance, if your household goods weigh 5,000 pounds, the minimum coverage cannot be less than $50,000 (5,000 pounds x $10.00 per pound).
Your moving company can provide an estimate for the Replacement Value Insurance and guidance on declaring items of significant value, such as antiques and classic cars.
RVI offers limited coverage for vehicles, trailers, campers, snowmobiles, motorcycles, boats, or engines. These items must be individually listed on the Bill of Lading (the legal document that permits the mover to transport your goods). The protection is limited to the current market value, model, and condition.
If you decide not to purchase (or waive) the Replacement Value Insurance provided by the mover, then Released Valuation will be used.
It’s essential to be clear about the level of protection you’re getting and ensure your Bill of Lading accurately reflects the coverage you’ve chosen, all while being properly signed by all parties involved. A Carrier Liability Certificate should be provided to you, which clearly outlines the mover’s responsibility for your shipment.
Your moving company should thoroughly explain the terms and conditions of the protection, as well as any limitations to the coverage (if not, request it from the mover!). They will likely ask for your written confirmation of understanding the coverage.
Will my personal belongings be protected under my personal home insurance when I move from one house to another? The answer is…it depends. Typically, your personal items are covered while they’re being transported to, and at your new home in Canada, as long as it’s your main residence.
Make sure the movers do not depart without having your Replacement Value Insurance or Released Valuation in place.
The amount of insurance for your personal items will be split between your current home, the items in transit, and your new home, based on the value of your property at each location. This coverage is only valid for a certain number of days (for example, 30 to 90 days) from the day you start moving your personal items from your main home, and it ends either when the policy runs out or is canceled. Not every loss will be covered because the policy sets limits and may exclude certain kinds of losses, such as damage from scratches or breakage of delicate items, unless they’re caused by an insured event. It’s advisable to get insurance from your moving company to ensure full protection. Claims on your home insurance will impact your future insurance rates. The discount for being claim-free, which is common, ranges from 10% to 20% of your insurance premium. You’ll also have to pay a deductible, which is usually $500 but can be higher today. Homeowners often feel upset when they have to file a claim on their own policy because they feel the mover, who is a professional, was negligent. (Source: NFP Insurance Group Ltd.)