Moving Insurance in Canada: Released Value, Replacement Coverage and What to Ask Your Mover

One of the common misunderstandings that are dealt with is when clients assume that valuation coverage is the same as moving insurance, but they aren't. 

They both provide coverage when your belongings are lost or damaged during transit or when packing, but their difference comes from their regulations and the providers of the coverage. A misunderstanding of these two aspects becomes a problem when one wants to hire moving services and fails to select the right coverage for their items, which can cause future problems. In order to avoid such misunderstandings, it's always advised to understand the moving insurance coverage policies before signing an agreement and seek guidance in selecting the right coverage. 

Moving insurance Canada coverage, as well as valuation coverage, is the spine that guarantees that your items are safe in case of incidents. The provided blogs explain what you need to know about moving insurance coverage and valuation coverage so that you can be able to make the right choices when working with professional movers. 

Moving insurance vs valuation coverage

1. Insurance 

Moving insurance is a contract signed between the customer and the moving company that is a protection policy that provides coverage to replace or repair your belongings if they are stolen, lost or damaged during a relocation. This insurance is available to anyone who agrees to work with professional movers. The movers require a declared inventory and valuation declaration so that there is clear proof of the list of all your belongings and the financial value of the goods.

What the moving insurance covers 

Transit damage: The coverage is effective when the vehicle overturns, catches fire or crashes. 

Theft and Burglary: The coverage is provided when items are stolen from moving trucks during transit. 

Handling damage: Damages like scratches and dents that occur when being handled by the professional movers. 

What the moving insurance does not cover

Owner packed boxes: All boxes packed by the customer are excluded unless there is clear evidence of external force that damaged the items. 

High value unlisted items: This is inclusive of cash, important legal documents and rare collectables. 

Perishable or hazardous materials: This includes open foods, plants, frozen foods or chemicals. 

Pre-existing damages: Items with already existing damages like scratches, wear and tear, flaws are not included. 

Mechanical breakdown: Items with mechanical or electrical failure without external damage are not included. 

1. Valuation coverage 

This is the regulated pricing that movers assume for your goods during transit. It is needed to determine the amount the mover must pay when they lose or damage your items. It is categorized into two types;

1. Basic: Released value protection 

Cost: Added without any extra charge 

Liability: It has a fixed amount, which is $0.60 per pound per article 

Effectiveness: Reliable for low-value or second-hand items 

1. Comprehensive: Full value protection 

Cost: The customer is charged an additional amount, which is 1% of the total declared value.

Liability: The movers are expected to repair or replace the similar item, or they can pay cash for the market value of the item.

Effectiveness: Reliable for high-value or irreplaceable goods.

When to choose Released value protection and full value protection 

1. You can always choose the released value protection when you have comprehensive homeowner’s insurance that provides coverage even when in transit or when the goods are not of high value.
2. Opt for the full value protection when you have high value items.
3. You are expected to provide a declaration of the total value for your entire shipment; then you can pay the valuation fee, which is based on the total amount. 

How you can differentiate valuation coverage and moving insurance 

1. The valuation coverage is provided by the moving company, whilst the insurance is provided by a third-party insurance company.
2. The valuation coverage is regulated by the transportation law, while the moving insurance is regulated by the state insurance departments.
3. The valuation coverage is effectively for the mover’s negligence, whilst the moving insurance is flexible and has higher coverage for various cases. 

Common mistakes to avoid when moving 

Ignoring valuation and insurance contracts

Always take the time to understand what the insurance covers, and confirm what the valuation coverage protects, to analyze if it is efficient for your items.

Failing to get quotes in writing 

The moving contracts are provided in binding and non-binding form. Ensure that your quote agreement is in writing; ensure you have the binding form of the agreed quote. 

Skipping background checks 

Take time to research the company to know how they handle their services and their legitimacy(if they are certified or accredited by the Canadian Association of Movers. 

Forgetting about the inventory list

Creating is an aspect you would have to do; ensure you create a list of both your high-value items and low-value items and list their financial value.

The facts behind the common misconceptions 

Myth: Valuation is insurance 

Fact: Valuation and moving insurance are not the same. The valuation coverage is provided by the professional movers, whilst the moving insurance is provided by a third-party company. 

Myth: Basic coverage provides full protection of low-value items 

Fact: Basic coverage has a fixed amount that is assumed on items per pound and is used by the professional movers. 

Myth: Full protection provides protection for everything

Full protection is exclusive to the owner of packed boxes, natural disasters and unlisted high-value items. They are also able to repair, replace or pay cash for a similar item. 

Conclusion 

When you make the right choices when handling your move, it brings ease and eliminates the hiccups. Therefore, never rush your moving process; take time to understand your quote, the insurance, valuation and do a background check; it saves a lot. 

Galaxy Movers Calgary provides transparent transactions when handling the moving insurance Canada coverage guide as well as valuation coverage. You can entrust your items to Jagminder Bhangu and his professional team to handle the process with the utmost safety so that they are delivered to their destination in good condition.