Long Distance Moving Specialists - Insurance
moving companies insurance, long distance moving insurance, long distance movers insurance
Basic insurance is provided by California New York Express Movers at
no extra cost. This insurance is mandated by the Department of
Transportation and values all lost or damaged goods at sixty cents per
pound per item.
Replacement Value Insurance
Insurance is one of those things you'd rather have and not need than need and not have.
We highly recommend purchasing insurance. If you choose to purchase full value replacement insurance, we request that you obtain coverage for your goods as early as possible. In any case, insurance must be purchased prior to your actual moving day. Don't wait for the last minute as some insurance companies, for their own reasons, refuse to insure you on moving day itself.
1) Maybe you already have insurance
If you have renter's or homeowner's insurance, you may already be covered or be able to purchase a coverage policy through your personal insurance agent.
2) Purchase full value replacement insurance
If you need to purchase full value replacement insurance, we recommend using Baker International. Baker International, an agent for AIG, is head and shoulders above what any moving company is able to offer. 30-day guaranteed claim resolution, 90 days of free storage insurance, fire, theft and acts of God are all covered under Baker's policies.
Understanding The Meaning of Basic Insurance
The Department of Transportation (DOT) mandates all moving companies to provide basic insurance. This insurance values all lost or damaged goods at sixty cents per pound per item. All moving companies are required to provide the exact same insurance.
In order to refund clients with a sixty cents per pound per item, companies first need to know how many pounds your item weighs. To determine your items weight, all moving companies use the same official DOT chart, containing standard household goods weight and volume. (it is the same chart they use originally to determine your move price. See pricing page). Once weight has been determined, moving companies then multiply it by 0.60 cents.
For example: in the DOT chart, a large box is considered to weigh 31.5 lb. Companies multiply 31.5 lb x $0.60, which comes to $18.90. Disregarding the content of the box, this will be your refund for any claim you might file for a large box after your shipment was delivered (according to the basic insurance terms and conditions).
What the DOT had in mind when they created the basic insurance model
When a moving company gets paid by you to move a large box, its charging you approximately the same ($18.90), but the content of the box may be much higher in value, just for example lets say $750.
If moving companies only got paid $18.90 each time to transport a box, but had to pay $750 when a box was damaged, the industry would collapse. The DOT understood this and stepped in to create the basic insurance model. On one hand, this allows companies not to go bankrupt, and on the other hand it holds them responsible for their work. They refunded the customer the exact amount they charged him for that box, but in actuality the company lost since they already spent so much money on transporting the shipment, paying the movers, the trucks, the fuel, etc. in order for any company to survive the moving business, it must mature and become highly professional.
On this last note, we understand that explaining the "moving company's side of the story" might not always comfort you, and because of that we highly recommend buying a full value replacement policy.
For your consideration - These are the two most common issues with basic and full insurance (applicable to all moving companies)
Furniture made from particle board: Some furniture are made from this material, and due to its' perishable nature, tend not to survive a cross country move. You can of course attempt at shipping these items, however both basic and third party insurances exclude these items from their coverage.
PBO boxes (boxes that were packed by owner): Since moving companies do not know which items were packed inside such boxes, the condition of the items, and the way the items were packed - they are unable to assure their safe arrival, and therefore exclude them from both basic and full coverage. Third party insurances limit the coverage for such items (approximately $250/box, please speak with your broker). For this reason, if you have items that are especially delicate or expensive, we strongly recommend to have the movers pack them for you.