Insurance is an essential purchase when moving home; whether you are moving within the same country or overseas, accidents can and do happen. During shipment there is always the chance of a container being dropped or something breaking, no matter how well the items are packed there is no guarantee they will not be broken. What is important is how that damage is dealt with, how the removals business handle the claim and that the item is covered. Replacing the article, or giving you the money to replace it, Insurance compensation gives you the piece of mind should an accident occur.

Different Types of Insurance
Each removals business, by law, has to provide a basic insurance cover to the consumer without cost, the insurance against accidents. When you look at the scheme itself you will observe that the amount covered in nothing like the real cost of replacing the items. This equates to a compensation of 60 cents per pound per article meaning the movers would be liable for a maximum of $60 for a 100 pound item. Some movers may compensate you for the total weight of the container in which the damaged article was in. If the removals business do not pack the item themselves, then it is unlikely the item will be covered under their insurance agreement. As we can see, this sort of insurance is quite often not enough to actually cover the losses. Added Value Protection Cover. This is extra coverage supplied by the movers business and just raises the amount of money you get per pound per article. This policy differs between each firm but normally it is about $2. You can clarify the particular coverage with your removals firm. Bits and pieces that are expensive to replace but are light are not really covered in this type of scheme as the cover arranged by the company is still paid out on weight. For a policy that pays out the cost the specific item when you bought it, or pays the depreciated value of the item lost or broken you can get Market Value or Depreciated Value policies. There is still a disadvantage to this type of scheme as you would need to go through every item you possess, find the price of each item, then declare it to the removal business and/or insurer before you move. Today most people use a Replacement Value scheme rather than have to do go through the inconvenience of the other type of schemes. Replacement Value schemes are usually called the ‘Like for Like’ or even the ‘New for Old’ insurance. Higher premiums are the downside of this scheme, but the upside of it is, your items are replaced or you are paid out the market value of your belongings as they are priced today.

Items that you can’t Insure

It doesn’t matter how hard you search, there is always going to be a few of your belongings that are not covered. Keep these items with you, rather than put them in the removals vehicle. Belongings not covered under the plan agreement include such items as cash, photographs, personal papers and jewelry. Objects that show no outward sign of damage such as TVs and computers would not be covered unless you can show carelessness by the removal firm. If you are moving fine art, valuable musical instruments or antiques, you should think about special measures to assure their safety and protect against their loss or damage such as having the piece wrapped and crated for maximum care.

As with all aspects of moving, make a list! – This time an Inventory File

A list of your items is a must, and should be completed before the removals firm turn up. This list should have all objects that are being moved, their value, replacement price and type of condition they are in. Pictures of your items, at least the valuable ones, are a good idea and should be kept with the inventory list. If the objects are smashed or lost then you will grateful for the work it took to do them. When moving abroad, this list will be very advantageous because many customs and inspections will need it.

Some Further Helpful Information
Before signing any contract for insurance, look for any exclusions that the policy may have and read through before signing. Ask questions about the policy if you are unsure about anything in it. When moving abroad, find out if you are covered in that country as well as the country you are leaving. Keep hold of a copy of your photographs and inventory until they are safely put in your new home. Whilst every care will be taken by the removals firm, check to see if your insurance covers any damages done to your property.

Delivered by Jay Banks, Vancouver Condominiums professional.