Why Insurance Matters When Hiring Movers
Introduction
"It will be fine, they're professionals." This assumption costs homeowners thousands of dollars every year. Even the best movers can hit a pothole, and even the best packing can fail. Understanding why insurance matters when hiring movers—and specifically the difference between "valuation" and true insurance—is the single most important financial safeguard you can put in place for your Ottawa move.
Main Sections
Valuation vs. Insurance: The Big Confusion
Most moving contracts include "Released Value Protection" for free. This is NOT insurance. It is a liability limit mandated by transport law, typically set at $0.60 per pound.
- *Scenario:* Your 50-pound flat-screen TV ($800 value) is dropped.
- *Released Value pays:* 50 lbs x $0.60 = $30.
- *You lose:* $770.
True "insurance" (or Full Value Protection) means the mover must repair, replace, or pay the cash value of the item in its current condition.
Full Value Protection (FVP)
This is the upgrade you need to ask for. With FVP, if that same TV breaks, the mover must replace it with a comparable model. This coverage costs extra—either a flat fee or a percentage of your total inventory value (e.g., 1%). It often comes with a deductible (e.g., you pay the first $250). For any move involving furniture, electronics, or items you actually care about, FVP is essential.
Third-Party Insurance Policies
Sometimes, a mover's FVP is expensive. You can check your own homeowners or tenant insurance policy. Some "comprehensive" policies cover goods in transit or in storage for 30 days. However, read the exclusions carefully. Many homeowner policies cover "catastrophic loss" (truck catches fire) but exclude "breakage" (dropping a lamp) unless packed by professionals.
What is Usually Excluded?
Even with insurance, certain things are rarely covered.
- Customer-Packed Boxes: If you pack it yourself (PBO - Packed By Owner) and it rattles, the mover is not liable unless the box is visibly crushed.
- Jewelry and Cash: Movers will not insure high-value small items. Move these yourself.
- Internal Mechanics: If your computer arrives with no scratches but won't turn on, insurance rarely covers it (claiming pre-existing condition) unless there is external damage.
The Claim Process
If damage happens, time is of the essence. You usually have a defined window (e.g., 30 to 60 days) to file a claim. You must note damage on the Bill of Lading *at the time of delivery* if possible. Take photos immediately. Do not throw away the broken item or the box it came in until the adjuster has seen it. Documentation wins claims.
Local Expertise Section
Why This Matters for Ottawa and Gatineau Residents
Ottawa's roads are notorious for potholes and winter frost heaves. The vibration inside a truck driving down Carling Avenue or crossing the Chaudière Bridge is significant. This constant shaking is the primary cause of damage, not dropping. Furthermore, if moving during an Ottawa winter, thermal shock (freezing to heating) can crack wood finishes. Insurance is your safety net against these environmental factors that are outside anyone's control.
Insurance is the safety net, but WSIB coverage guards against lawsuits. Knowing your rights under Ontario moving laws helps you enforce a claim. Of course, the best insurance is prevention—pack correctly using tips from how to pack your home and specialized guides for antiques.
FAQ
Q: How much does Full Value Protection cost?
A: It varies, but typically 1% to 2% of the declared value. If your goods are worth $50,000, expect to pay $500–$1,000 for peace of mind.
Q: Does my credit card cover moving damage?
A: Rarely. Credit card purchase protection usually applies to new items bought with the card, not household goods being transported.
Q: Can I insure just my TV and nothing else?
A: usually no. Movers require you to value the entire shipment to avoid "cherry-picking" liability.
Q: What is a "deductible" in moving insurance?
A: Just like car insurance, it's the amount you pay before coverage kicks in. A higher deductible usually lowers the upfront premium cost.
Q: Are storage units insured?
A: Not automatically. You usually have to purchase a separate "storage rider" or buy insurance from the storage facility directly.
Hiring movers without insurance is a gamble with high stakes. Released Value puts the risk on you; Full Value Protection puts the risk on the mover. By understanding why insurance matters, you can budget for the protection your belongings deserve. UpMove's partners offer clear valuation options so you can choose the level of security that lets you sleep soundly in your new home.
