If you're looking for a moving company to transport your belongings, you might be wondering: is a moving company required to have insurance? Moving companies have to be equipped with commercial vehicles and adequate liability coverage, which covers them in case of accidents or damage to other cars. While most states require movers to carry a minimum amount of liability coverage, you can usually opt for more. Listed below are some of the most common types of insurance a moving company should have. best local moving companies near me
Liability coverage is essential if your possessions are damaged or stolen during the move. It pays for the value of the items damaged during transit, including medical bills. Moving companies are required by law to carry liability coverage, and this coverage typically comes in two forms. One type of coverage is released value protection. This type of policy covers damage to other people or property, and it must be in writing. This coverage is also important if you have valuable possessions.
In addition to liability insurance, a moving company should also carry a Hold Harmless Agreement, or COI. This overarching agreement transfers liability for any damages that may occur during the move. The COI insurance limit varies depending on the size of the company and type of move. Smaller companies may cover up to $2 million per item while large ones may have to carry $10 million of coverage. You should always ask for a certificate of insurance before hiring a moving company.
If a moving company does not have insurance, consider buying it yourself. Some states don't hold companies liable for damage caused to your possessions, but you should always check with them before entrusting your property to them. Remember that the moving industry is full of extortionists and scammers! In some cases, homeowner's insurance will cover your belongings while you are gone. This policy is particularly valuable if you're moving long after selling your home.
Moving companies are usually large, with multiple trucks and crews based on their number of clients. Smaller companies can be as small as two guys doing their job. Either way, the need for insurance is a must. You'll be glad you did. If your possessions are insured, it will protect you from financial disaster and lawsuits. While insurance doesn't cover every possible incident, it is well worth the money.
If you don't want to purchase insurance, you can always ask if your moving company has any form of valuation coverage. This kind of coverage covers your belongings if they are damaged or lost during a move. In most cases, the valuation coverage is not insurance, but it covers most of the costs of replacing or repairing damaged property. You can also ask about the amount of the deductible on the insurance policy. Generally, the amount of deductible is between $250 and $1,000.
The Certificate of Insurance (COI) is proof that the moving company has liability insurance. It is not complicated, but it is required for some moving companies. Most luxury and high-rise buildings in New York require movers to have this certificate. Moreover, if you're moving from one apartment building to another, you may want to ask if the company has an insurance certificate that covers your move. A certificate of insurance will also tell you how much money your insurance will cost you.