When getting ready for your move to Vancouver, you want to ensure your belongings are protected in the event of damage or theft.
There are several different options and types of coverage provided by both moving companies and third parties that you can consider. It’s important to understand the differences when making a choice.
Do I Need Moving Insurance or Storage Insurance?
Your current home insurance may cover your items in a move. Many polices will only cover a percentage of your items, so speak to your insurance company. There are often limitations on your insurance and on liability. Find out what the deductible is.
If your home insurance does not cover moving, ask if you can purchase short-term coverage for the move. You may be able to get a better rate with your own insurance company than through the moving company. Look for “All Risk” coverage if you want to make sure you’re fully covered.
Home insurance usually won’t cover off-site storage facilities. Talk to them about purchasing additional insurance.
Understanding Moving Insurance Coverage
In Canada and the United States there are generally three forms of moving insurance, Basic Liability, Declared Protection or Released Value Protection, and Full Value Protection.
Basic Liability. In some provinces and states, accredited moving companies are required to provide a basic level of protection. This is based on the weight of your shipment, and is usually 60 cents per pound. Your average television would be covered for about $30. You are not well protected with basic coverage.
Declared Value Protection. In this case, you would declare the value of your goods and items. They will insure for this value minus depreciation. So in the event of your ten year old TV being broken, you would be covered for the value of replacing the television minus how much it has depreciated over those ten years. This again leaves you exposed coverage wise.
Replacement Value Protection. This is a high level of protection that should cover the full replacement cost of the items destroyed or lost. With this option there may be a deductible. Cost is based on the declared value of the shipment, so you’ll be paying a premium.
For the more expensive coverage options, you should have a detailed list of the items being moved, and the policy may require photographs as well. Even if photos are not required, it would be wise to take photos of your more expensive items and heirlooms.
Look for limits in liability and make sure you’re covered under all circumstances. Some polices won’t cover environmental disasters etc. Read all of the fine print.
Who Packed the Items?
Coverage can vary based on who packed the items. Some moving company insurance only covers items the movers packed, so insure that you’re following the rules of the insurance to the letter.
Storage Insurance Coverage
Storage coverage is much the same as moving insurance, except there are generally no requirements for storage companies to provide basic liability insurance. You can speak to your home insurance company and talk to them about purchasing additional insurance.
They may have some basic liability options, otherwise you’ll be looking at Declared Value Protection or Replacement Value Protection.
You may want to insure everything in storage, or you may want to only insure individual items to keep your storage insurance premiums down.
Final Tips for Total Coverage for Moving Insurance & Storage Insurance
1. To ensure full coverage, have Replacement Value Protection and ensure that is the full replacement cost, not the cost after depreciation.
2. Read the fine print and get “All Risks” coverage. Make sure you’re insured against All Risks, and read limitations in your coverage carefully.
3. Make sure the appropriate party is packing the items to ensure all boxes are covered.