In the present day circumstances
of high competition in the moving and packing industry, more and more
players are coming out with value added services at affordable prices.
Now, the insurance cover can be obtained, at reasonable costs. This
provides complete peace of mind. So, selecting a proper policy is
important.
Some of the types of insurance facilities are: Moving Insurance, Auto
Insurance, Health Insurance, Life insurance, Renter's insurance, home
owner's insurance etc.
The most common among them is "insurance for goods in transit"
and is referred to as cargo (or transit) protection. This is an option
to be compensated for any loss or damage to the goods while in transit.
The moving and packing companies sell a coverage and accept a degree of
liability in return for a premium paid. But this can not be strictly
called insurance as only insurance companies have the right to sell
insurance. The movers have their own policies and they ask the customer
if he wants to be protected under their policy or not and to what
degree.
Generally speaking, each moving company charges a premium for cargo
protection. The rates and methods of assessing rates vary from company
to company and region to region. Some charge a flat rate, some charge
based on how long the move takes (hourly), some by weight or a
combination of these.
Insurance of extra ordinary items
Also, the items of "extraordinary value" must be declared
clearly. This is because despite all the cargo coverage, there is a
limit on the amount the insurance company pays out on one given item.
The moving consultant should be asked about this. If the item(s) of
extraordinary value are noted on the bill of lading, the amount is
covered.
Storage Insurance
Generally, if the goods are stored in a warehouse for an extended
period of time, a separate insurance is needed for this. This can be
arranged through the storage facility, the mover company or customer's
own insurance company. Storage facilities generally charge a fixed
amount for a particular amount of of declared value, per month of
storage. The rules about dangerous goods and items of extraordinary
value apply here as well.
Insurance Documentation work
The basis of the insurance agreement is the individually completed
insurance proposal form. This duly filled up document, by the individual
or an authorized representative of the company, provides the exact
details of the standard cover, exclusions and the limitations of
subsequent claims.
Insurance claim
One of the crucial factors here is who did the packing. If the packing
is done by the customer himself, then most of the companies do not have
any liability clause for them. This is because a mover and its insurance
company cannot insure contents of boxes that they have never seen. They
also don't know if the contents were packed properly. As a result, if
the customer packs it, he takes the risk. In general, if the customer
packs it (or unpack it), the company nullifies any insurance coverage.
