Moving Companies: Are You Insured?
It has been my experience that customers make one particular mistake over and over when getting quotes from moving companies, and that’s asking if the moving company is insured. It’s not that they ask that question, it’s how they ask the question, and what they believe they understand from the moving companies response. We”l explain why as we get further in to the discussion, but to get there, let’s first look at how moving companies are licensed and insured. To be licensed in my particular state to transport household goods, you have to be insured as a mover. In fact, the Oklahoma Corporation Commission, in conjunction with the transportation division, require that the insurance provider file with the state the requisite paperwork proving the appropriate coverage for that mover, in order for a license to be issued, and that the insurance coverage be kept up to date with the states records. This is particularly important in that if a moving company has a lapse in coverage, the state is notified, and the carriers license is revoked. So what’s the big deal here?
As long as the customer is verifying the movers authority to operate, and verifying they have insurance, everything is okay, right? Not necessarily. What the customer often fails to realize is that they are only asking half the question. What they should be asking is, are you insured to operate, are you licensed to operate, and how are my goods insured during the move. And that is the icing on the cake so to speak.
Since all movers have to be insured to operate, customers often assume that their goods are insured because of that. To an extent, they are, and when the mover says they are insured, they are telling you the truth (hopefully). What they are leaving out is the type of coverage afforded to you as a customer. There’s more that one option. One is free and the other can be included at no additional cost, but is often an extra charge on top of the moving costs. Depending on the mover, it can be a pricey option. And when you find out about it on move day, and not before, you’re often left choosing the cheaper free option required by the state.
Here’s what you get for free. In Oklahoma, and in most states, movers are required to cover your goods during transportation at a rate of 60 cents per pound, at no additional cost to you. So what does that mean. Let’s give this free coverage a little perspective. Take an IPad for example. Valued at around $600, it weighs 1.35 lbs. Which means under this type of coverage, your IPad is valued at 1.35 X $0.60 = $0.81 cents. And that’s what you get if it’s damaged or destroyed in transit.
And how much does the full value coverage cost. Full value by the way is the second option and it implies that your goods are covered 100% and not by the 60 cents per pound method. Well, the cost can vary by mover, who typically set their own rates, unless they are using a third party company to provide the service. In addition to varying in cost, you have the option to select varying levels of deductibles, which can raise or lower how much you pay for the coverage, but can also raise or lower your portion of the cost when something is damaged. Think of it like car insurance. If you select the $500 deductible, you’re responsible for the first $500 of damage, even though you paid for coverage.
Hopefully it’s obvious from this discussion why this information is important, and how you ask the question is equally important. Movers are obligated to tell you about all this before you sign your moving agreement, but wouldn’t you rather know before moving day when you’re left with no other options.
I’m the owner of a Tulsa Movers moving company, NAL Movers Tulsa, and we don’t charge extra for the full value protection. Most Tulsa moving companies will charge for this service. For more information on this topic, check us out at www.movethatstuff.com.
NAL Movers Tulsa
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