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 claimOne 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.
