*Moving Insurance

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My1Dance
Posts: 6
Joined: Tue Mar 20, 2007 6:04 pm
Location: New York, NY

*Moving Insurance

Postby My1Dance » Sun Apr 15, 2007 3:50 pm

Please help me understand what I am supposed to do as far as buying insurance for my upcoming move from New York to Florida. I have searched this site, but still am having trouble discerning valuation from insurance and what I really need.

I have decided to go with FlatRate movers (I know what you are thinking, but it's a long story and I am OK with things as they are). On my contract, FlatRate has two options for this move:

OPTION 1 MINIMUM LIABILITY: (No additional charge) For this insurance the shipment will be valued at .60 cents per pound, per article.

OPTION 2 VALUATION: A replacement cost policy for loss or damage, is available for ten dollars ($10.00) per one thousand dollars ($1000.00) with a minimum of three thousand dollars ($3000.00). This insurance policy has a deductible of five hundred dollars ($500.00). Valuation insurance must be maintained in storage at a rate of $3.00 per $1000.00, And on the move out at a rate of $10.00 per $1000.00.


However, a little farther down, they say:

Proof of insurance on goods is required 48 hours prior to the move - please see www.movinginsurance.com or call (888) 893-8835.


What should I do and what do I really need to buy?

MusicMom
Posts: 19323
Joined: Wed Feb 25, 2004 11:51 am
Location: DC Metro

Re: Moving Insurance

Postby MusicMom » Sun Apr 15, 2007 3:56 pm

Buy the extra valuation. If your $1500, 100 pound solid hardwood curio breaks and you only have the basic valuation, you're given $60 for it.

Is there any way to buy it directly from Flat Rate? Do you HAVE to go through MovingInsurance.com?

My1Dance
Posts: 6
Joined: Tue Mar 20, 2007 6:04 pm
Location: New York, NY

Re: Moving Insurance

Postby My1Dance » Sun Apr 15, 2007 4:01 pm

I don't know that I have to go through MovingInsurance.com. I am sure that there are other insurance companies, but I wouldn't even know where to begin.

Am I expected to buy both, then, valuation and insurance?

MusicMom
Posts: 19323
Joined: Wed Feb 25, 2004 11:51 am
Location: DC Metro

Re: Moving Insurance

Postby MusicMom » Sun Apr 15, 2007 4:15 pm

Technically, this is not "insurance" you're buying. Insurance replaces things for their actual value. "Valuation" still treats your goods like freight, and replaces them based on their weight, nomatter what thier value. A ten-pound bowling ball is worth more in valuation than Gramma's 5-carat diamond solitaire.

Rick
Posts: 3269
Joined: Thu Aug 04, 2005 7:59 pm

Re: Moving Insurance

Postby Rick » Sun Apr 15, 2007 4:18 pm

Under Federal law, any mover operating under interstate household goods authority approved by the Federal Motor Carriers Safety Association must offer two different liability options referred to as valuation coverage: (1) Full Value Protection and (2) Released Value. This is not insurance.

Since Flatrate Moving Sytems LTD is licensed to operate as an interstate household goods carrier they must offer you these two valuation options on your move to Florida.

Valuation options are explained in Your Rights and Responsibilities When You Move, a booklet movers are required by Federal regulations to provide to interstate moving customers and at the FMCSA’s Protect Your Move website at http://www.protectyourmove.gov/consumer ... urance.htm

My1Dance
Posts: 6
Joined: Tue Mar 20, 2007 6:04 pm
Location: New York, NY

Re: Moving Insurance

Postby My1Dance » Sun Apr 15, 2007 7:36 pm

Thanks Rick and MusicMom.

I guess the answer then, is yes. I need to buy both the valuation and insurance.

I will buy the valuation option from FlatRate. Do you know if www.movinginsurance.com is reputable and pays when things are destroyed or if there is another insurance company I should use?

Diane
Posts: 15824
Joined: Tue Oct 07, 2003 12:18 am
Location: Los Angeles

Re: Moving Insurance

Postby Diane » Sun Apr 15, 2007 8:22 pm

Hi,

In my opinion, rather than guessing about it, it would be better to call Flat Rate and ask them directly whether you are required to purchase both their valuation coverage at $10 per $1000 and insurance through MovingInsurance.com. My guess is that as long as you have purchased valuation coverage through Flat Rate, that will be enough.

Note, however, that there is a $500 deductible. Most damage on moves is less than that, so you may not get much return on your investment. And I'm sure that Flat Rate knows it.

Since you ask, personally I think it will be difficult for you to collect anything from MovingInsurance.com in case of damage. Also, I am wondering whether the coverage duplicates the valuation coverage being sold by Flat Rate. In that case, it would be a waste of money to buy it. Inquire too what the deductible is on the MovingInsurance.com coverage. Usually these companies like Flat Rate that I consider dubious deal only with MovingInsurance.com so I doubt whether you will be able to buy insurance from any other company.

Rick
Posts: 3269
Joined: Thu Aug 04, 2005 7:59 pm

Re: Moving Insurance

Postby Rick » Sun Apr 15, 2007 8:51 pm

Unless you have extremely valuable, one-of-a kind, or antique items in your home, purchasing insurance is usually not necessary if your dealing with a reputable mover.

Agent for most of the major van lines can sell or obtain separate liability insurance if you request it. The cost of this insurance is not included in the basic move and must be purchased separately by you. This is not valuation coverage governed by Federal law – it is optional insurance regulated by State law. Before purchasing insurance, however, check your homeowner's insurance policy to see if you have any coverage under their policies.

Be aware that both a separate insurance policy and a movers full value protection will limit their liability if you pack your household goods yourself, and/or fail to notify your mover in writing about articles of extraordinary value.

If you really want to spend your money on transit insurance, contact Baker International http://www.bakerintl.com/ for a quote.

My1Dance
Posts: 6
Joined: Tue Mar 20, 2007 6:04 pm
Location: New York, NY

Re: Moving Insurance

Postby My1Dance » Wed Apr 25, 2007 9:16 am

Thanks for all the information. Thanks to you guys I was able to find out from FlatRate whether or not I needed both valuation and insurance. I bought the valuation through FlatRate.

The story is this: I was able to buy the valuation because I confirmed that my move was going to be done by FlatRate, on a FlatRate truck, by FlatRate employees. I would have needed insurance if the move was being done by someone else. Apparently, FlatRate will "farm out" some of there long-haul moves to other companies. I don't know who it would have been, but I can imagine what the outcome would be based on this bulletin board.

It's yet another question to ask a mover -- Will you and your employees be doing the entire move, or will it be done by a sub-contractor?

Thank you again.

Diane
Posts: 15824
Joined: Tue Oct 07, 2003 12:18 am
Location: Los Angeles

Re: Moving Insurance

Postby Diane » Wed Apr 25, 2007 9:33 am

My1Dance wrote:Apparently, FlatRate will "farm out" some of there long-haul moves to other companies.

Very important information that I will add to the Superlist - thank you for ferreting this out. I'm glad that the website was helpful to you. Good luck and please do come back to report.
Diane
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