Are you insured for that

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Are You Insured for That?

(What You Need to Know about Insurance and Shipping)

For most people, there are two kinds of shipping. There is the kind that involves small parcels being sent by big-name carriers, where you declare a value up to $100 in case of loss, and then there's the other kind of shipping, which generally involves packing up your house and car, and having them moved across country. It's the latter type of shipping that causes insurance concerns, and knowing when you can cancel your insurance or whether you need to keep your policy in force is crucial.

Shipping Household Goods

When you're moving household goods, you're either renting a truck, or hiring movers  - representatives of a trucking company who pack, transport, and unpack all your things. Either way, you'll want to make sure that if something breaks on the journey, you can replace it, and that's where insurance comes in. Here are some things you need to know about insuring household goods for shipping:

1. Your homeowners' or renters' insurance generally does not cover your belongings while they're being shipped. It may be possible to buy extended coverage if you are storing items, but not for transport.
2. Valuation is not insurance. Most shipping companies include standard valuation in their fees. This is their own coverage, and is usually limited to the cash value of an item, so rather than cost to replace it. Sometimes valuation is as low $0.60/pound for broken or missing items, so if a wingback chair weighing 50 pounds is damaged during transit, the company's liability for it is only $30.00.
3. You can purchase moving insurance. Reputable shippers will offer this, acting as a representative for a third party insurer. This is normal, and perfectly safe, but you can also go to an insurance company that specializes in moving insurance. Either way, you'll want all-risk insurance, which gives you actual replacement cost, and covers you against anything that may happen during shipping, including "acts of God."
4. Whether you choose to use a moving company or rent a truck, you'll want to create a detailed household inventory before you pack, and then a separate inventory that lists the number of boxes you have, and what they hold. Do this even if the movers tag and inventory your items and boxes, just in case.

Shipping a Car

If your move involves shipping a car, you still need insurance, but it works a little bit differently.

1. Most auto shipping companies have liability insurance, and their policies will cover damage that may occur during transit. They're required to present their insurance certificate to you for inspection, so be sure to ask about it if this is overlooked. You should also ask about exactly what is covered - is coverage limited to exterior damage, or to any part of the car?  - and find out if there's a deductible that you will be responsible for, if there's a claim. Finally, you need to remember that the shipper's insurance is based on the actual value of your car, so if you have a very new car, or a collectible or vintage automobile, you'll want to have it appraised as close to the date of departure as possible.
2. Your existing car insurance may still apply, so don't cancel your policy until your car reaches its final destination. You'll need the coverage to remain in effect while you get auto insurance quotes in your new city, anyway (there's usually a thirty-day window for this). Before you turn the car over to the shipper, however, be sure to call your insurance agent, and ask if your regular deductible applies, and what position your policy will hold. In most cases, your insurance will take the primary position, and the trucking company's will be secondary, so if there's a claim, it could affect your rates.
3. Before you ship your car, you'll need to do a physical inspection, and also make sure there are no personal effects, or loose items. (It's actually illegal, now, to pack belongings in a car being shipped.) It's a good idea to take pictures of the entire exterior of the car before you hand over the keys.

Whether you're shipping a car or all your worldly goods, don't hassle the truck driver or movers if something is broken. Just make a note on the bill of lading, and be sure they sign it. Then, call the moving company's office and deal with any reimbursement issues.

In the vast majority of transports for autos or furniture, there is no appreciable damage, and your shipping company will behave fairly and responsibly if there is a problem, but knowing how to handle your insurance will smooth the way for you and your possessions.