Moving Insurance Coverage 

Get to know your options!

Insurance is not something that is frequently thought about when planning out your move. There are many options when it comes to insurance and it’s important to understand them so you can make an informed decision. 

Understanding Insurance Coverage

First off, if you’ve found a mover like Stallionf that offers insurance, then you’ve most likely found yourself a reputable moving company. Congratulations! Understanding insurance first starts by understanding that no company actually sells insurance, only insurance companies do. Even when you buy a car and get the extended warranty, that is not actually insurance. What it is, is the amount of liability a company is willing to cover under their own insurance policies written by a real insurance company. 

So when you buy insurance for your new couch from Tepperman’s or you buy moving insurance from Stallion, what you are getting is the option to be compensated for any loss or damage to your goods to a specified value that of your choosing. This compensation has different values all the way up to our maximum value coverage of which we are covered under our actual insurance policy. What Stallion (and other moving companies) sell is a variety of coverage options that cover you under our policy (while goods are in our care). When you purchase our additional coverage we agree to accept a degree of liability, based on your choice of coverage, in return for a premium that you pay.

In the moving industry this means that while we have your goods in our care and are in transit with them, we are agreeing to extend to you our coverage. There is always a base coverage rate which is outlined and required by the government of $0.60/lb. This coverage is ALWAYS included at no charge, whether you agree to purchase our additional coverage or not. 

Understanding the Inherent Risks of Moving

Damage and lost items can and do occur on moves. This is not necessarily because the company is a “bad moving company” but because with any type of moving there is an inherent risk associated with it. Every time you even pick up a chair in your home, something could happen, such as you could drop it or it falls over and breaks. Additionally, when you take your car out for a drive, there is a risk that you could get into an accident. So you pay for auto insurance while you drive to avoid unwanted accidents. Now combine the two, not only are we moving your items in your home but we are also driving them to your new home! Simple probabilities dictate that at some point when moving thousands of pounds of furniture in your home that something could occur; or when driving down the street that someone on their cell-phone could crash into us. 

It’s just important to remember that accidents can and do occur. Even though Stallion and other reputable companies do their best to protect your stuff and think of every contingency, the real world still exists around us and we are all at it’s mercy. So please remember that when we are carrying hundreds of pounds of furniture up your tiny staircase through your tight hallways and across your mote and bridge there is a chance it could fall in with the crocodiles.

Government Requirements

As mentioned previously, moving companies are required in Canada by law to accept some degree of liability when travelling. The basic protection required is $0.60 cents per pound per article or $1.32 per kg per article.  For example, if damage or loss occurs to an item weighing 50 pounds, then the carriers (movers) liability is $ 0.60 x 50 lbs = $ 30.00. This coverage is fine for items that are cheap but is not comprehensive enough for an item such as a $1000.00 vase that weighs 50 pounds. This is typically referred to as Basic Coverage.

How ALL Types of Insurance Work

With any sort of “insurance” or extended coverage, even that purchased through your actual insurance company;  you will be subject to an investigation based on a company's terms & conditions. Some companies like Stallion, offer a 3 day grace period to examine your items. 

Did you read the fineprint?

Car insurance companies will give you vehicle insurance that covers your car based on the value of in its current state, NOT what you paid for the vehicle. This is no different than how Stallionextra coverage works. Items claimed over a certain value, set out by Stallion, will be subject to an investigation and third party valuer chosen by Stallion. When you purchase an item be it a car and drive it off the lot, you have what is called “depreciation”. This depreciation happens with most  items that are purchased new. This means that as soon as you drive your car off the lot, or buy a new couch and receive it, that item is worth less than what you paid for it. Depreciation happens at different rates depending on how old an item is, how used an item is, how stained an item is, among other factors. This means that your item will never be covered at the amount that you paid for it. It will be covered at its current value before it was damaged. This is typically called Market Value Insurance. 

Repair Versus Payout

Stallion reserves the right to repair an item internally back to its original quality or send out an expert to repair damages. This would be done as an alternative to paying out a claim if it is determined, through our investigation process, that the item is not a total loss.

Claims Process 

Insurance companies and not cover damages until an investigation has occurred. This is called
“Starting a claim”. If in the 3 day grace period you find an item that has been damaged in a move, you can submit a claim to our claims department. Unlike most moving companies that collect payment on the spot, Stallion sends out invoices for the jobs completed. No claim will be processed until the original invoice amount has been paid.

To qualify for a moving claim, you must be able to prove that damage occurred to your items while in the care of the movers. Typically this can be done by providing time stamped pictures of the items the week before the move. You can also decide to pay an hourly rate to have all your items inventoried. Remember that if you don’t pay for this extra service, it is up to you to make sure that all of your items have proof, to show that it was damaged during your move. This prevents Stallion and other reputable moving companies from being subjected to cases of fraud. Fraud unfortunately does occur and any instances of it will void any warranty or extended insurance coverage. As with any insurance company, if a claim is made, there will be an investigation, which tends to be more thorough the higher the value of the item; to determine what the payout or repair will be and authenticate any claims made. 

What a Typical Claim Looks Like

1) Damage has Occurred 

2) Invoice Paid 

3) Claim Submitted

4) Investigation Occurs 

5) Evidence Submitted 

6) Insurance Level Evaluated 

7) Investigation Completed 

8) Outcome Determined 

9) Repair or Payout or Declined

10) Claim Archived

Grey Areas of Insurance 

Know how your mover does valuations!

Companies use different valuing measurements when deciding what to provide for insurance. See a few examples below to understand what we mean.

Let’s use an item that weighs 10 pounds. For instance, a figurine that sits on your desk is packed in a box. The total weight of that box is 50 pounds. You packed the box instead of having the movers pack it for you. When the movers moved the box, they accidentally dropped it and claimed they did drop it. Your figurine is unfortunately damaged in the drop. 

Different moving companies use different ways to interpret the application of the government’s basic $0.60 per pound coverage. One company will give you the rate based upon the most damaged item only. This means you’d get the coverage on the 10lb figurine and not the entire box of damaged items. One company may pay for the weight of the damaged items individually. This may mean 40lbs of weight that was damaged. Some companies may give you the rate based on the entire weight of the box which was 50lbs. While other companies may give you nothing because you packed the boxes yourself. 

This is typically a fair practice because you nullify any insurance compensation when you do the packing. As well the moving company has not seen the contents of the box. So remember if you pack it, typically you take the risk. It is important to read all contracts and terms & conditions for any company that you are looking at using to move you.

Stallion in this example, would pay out on the claim of the all damaged items. Items that are damaged would be weighed individually and paid for based on the weight of damaged items. This is because even though Stallion are not responsible for items packed by you, because we can not guarantee that they are packed correctly; in this case our mover has dropped the box and we would take responsibility for it.

Coverage Types

There are a few different types of coverages that you can receive when you purchase insurance through your preferred moving company like Stallion. The first and most important to ask when questioning your preferred moving company, is to make sure they have cargo insurance through their insurance provider and the maximum limit that it covers. DO NOT MOVE WITH A MOVER THAT DOES NOT HAVE CARGO INSURANCE. Moving companies will offer a variety of options and variations of additional coverage. This is completely normal and provides extra coverage to you if you do not wish to buy full value coverage as it can get expensive. These options are named differently depending on the company but they are all in the realm of “Added Value Protection or Market/Depreciated Value Coverages”. Here is a brief summary of them and what they cover, along with examples for each.

Basic Coverage 

Often referred to as “basic’” or “no insurance coverage” should cost you nothing since it gives little coverage. It is mandatory by Canadian law and covers $0.60 per lb of your furniture. If a moving company you are looking at does not even offer this, run the other direction as fast as you can! This type of coverage may be enough if you can arrange your own coverage through your own household insurance or you are just moving a few things of little value or older items you are not worried about being damaged. Ask your own insurance company or broker what coverage you can qualify for when moving your items from your old home to your new home (contents insurance). You may find you don’t need to purchase any extra coverage through the movers you choose as you are already covered through your own insurance provider.

Ex:  50 pounds, then the carriers (movers) liability is $ 0.60 x 50 lbs = $ 30.00

Added Value Protection

A great alternative to both Basic & Full Value Replacement Coverage because it gives you more options depending on the cost/risk reward you are interested in. For example, a company may charge a premium and increase the coverage from $0.60 per pound to a greater value, say $ 2.00 per pound. Now the total replacement value may not be the (full amount listed) but it gives you a top up, to that amount if you are concerned about a particular item or items being damaged. The amount is capped at the total value listed for all items within your move so if you have a few items that really need protecting it’s better to buy a higher total value of insurance.

Ex. 50 pounds, then the carriers (movers) liability is $2.00 x 50lbs = $100

Market Value or Depreciated Value 

This option should be compared against the cost of replacement value as the market value of the damaged item is considered for compensation instead of the initial purchase value. All insurers use this even when you buy a vehicle, that is why car companies offer the “initial purchase price protection” or typically referred to as “GAP” insurance in the auto industry now.  All insurance coverage outside of basic and full value from Stallion is considered market value insurance. It can be tricky determining the market value of a piece of furniture yourself but Stallion will bring in an outside third party expert to determine all market values of claims over $1000.

Ex. Weight is unnecessary as an item originally purchased at $100 is now valued at $50 because you’ve had it for 5 years and comparable items sell for that price on average. The carriers (movers) liability would pay you out at $50. This is how Stallion values most items when purchasing insurance less than the Full Value Replacement Coverage.

Other Movers may do it as a declared value in the range of $4 to $6 per $1000. This is normal as many other moving companies base things solely on weight. In this case you would declare an amount of coverage you wish to be provided with and you would pay their premium required ($4-6 per $1000). In the event of total loss of all your goods, you get back the total declared amount. In the case of damage to an individual piece, you would get back a maximum of the market value for that piece.

Full Value Replacement Coverage 

This type of coverage is complete coverage for an item, up to the amount of cargo insurance covered by the movers insurance company. For Stallion we are covered up to $25,000 in damages via cargo insurance. Make sure to check the insurance document of any moving company offering insurance to make sure they can provide what you are paying for. Watch out any movers that try to tell you that replacement coverage does not exist as it does exist. Stallion will bring in an outside expert to determine all replacement values of claims over $1000.

Ex. What you pay for an item and what is declared on the inventory is what you will receive if an item is damaged. Remember most moving companies do reserve the right to repair an item if it is not declared a total loss. Replacement value will fluctuate, as does market value coverage. Typical rates for most movers fall between $7 and $9 per $1000 of declared value respectively. Stallion do charge a premium and all items will be verified in terms of declared value. Remember we have coverage up to a total of $25,000 for a total loss but the per item value is less than the total coverage up to $2000 per item.

Things that are NEVER insured

There are things that are not insured, even if you pay for extra coverage. Why? Because certain things are irreplaceable and should be moved by the customer. An example of this would be jewelry. Other items can include collectables such as coins or stamps, or legal documents,  and especially items of sentimental value such as family pictures. Computer systems and data is also not covered, so back up your disks before moving!

Generally, the interior workings of appliances, televisions, stereos, etc. are not covered unless there is a clear indication of damage that occurred by the mover. If the item was handled properly and something does not work after the move, there is no coverage. For example, sometimes when a fridge moves, especially old fridges, they may just stop working out of the blue.

The content of boxes are not covered under cargo insurance policies unless the mover (or an agent of the mover) has packed and unpacked the boxes. This is because there are certain ways items need to be packed into boxes to avoid damage. Usually, the mover will cover goods (up to the coverage you purchased) for clear mishandling of a box but this is rare as most boxes are easily moved without incident. If there is obvious damage to the exterior of a box, generally the mover will compensate you but it is important to remember how to pack boxes properly for a move. Do not overload them and do not leave big spaces in them either as this ruins the integrity of the box.

Sets of furniture and appliances are not covered. That is, if you have a matching couch, loveseat and char and the chair gets ripped, the mover is only liable to repair or replace (up to your coverage selection) the one piece and does not have to touch the matching pieces, even though may not match after, repair, recovering or replacement of the one piece.

Be sure to check out all of the terms and conditions of every mover before you decide to hire them. Stallion provides a full list on our website in the terms and conditions section. Please note that the terms and conditions are written to protect Stallion from instances of fraud. The language used makes it seem like it may not cover much. However, this is no different than purchasing a car from a dealership and is specifically written by our lawyer to protect us against those that may wish to abuse our insurance. Please be advised that we are people and will do our absolute best to assist you with any issues that arise. Stallion is committed to providing the best possible customer experience and we will do everything we can to make sure we take care of any incidents professionally and with reasonable conclusions.

Extraordinary Value

You are required to declare items of extraordinary value before a move takes place. Typically this is done during a quote. Items such as expensive paintings or cars, are considered items of extraordinary value. These items require a declared value because despite all of the cargo coverage that Stallion or another reputable company has, there is always a limit on the amount an insurance company will pay out on a given item. These items require the mover to contact their insurance company and confirm that it can be covered if there is an incident. If you have any item that is being moved and it exceeds the per item value limit on the insurance policy; you must tell your mover so they can make special arrangements with their insurance provider.

Dangerous Goods & Items Not Covered by Insurance

There is an entire list of “Dangerous Goods” and “Items Not Covered by Insurance” on Stallion website in the Terms & Conditions section. Do not pack any item that is classified as a dangerous good. If you do pack a dangerous good or items not covered by insurance, and any damage results from it, your insurance will be void. Unfortunately this also means that you do not qualify for even the Government mandated $ 0.60 per pound as Dangerous Goods require a special class of insurance. The best thing to do when it comes to dangerous goods & Items Not Covered is to transport them yourself and dispose of any materials no longer needed at your local waste facility.

Storage Insurance

Something not typically known is that if you plan to store your items in a facility or warehouse for an extended period of time; you will require extra insurance for this if you wish to protect your items. Typically the storage facility does offer insurance, or you can arrange this with your insurance company or mover.

Typical costs for insurance you can expect range between $1.00 and $2.50 per $1000 of declared value per month of storage. You may not store dangerous goods and it is recommended to never store high value items, if you must, they would require special insurance. Stallion does not offer storage insurance at this time.

Important Questions for your Chosen Moving Company

Generally speaking, each moving company will charge you a premium for cargo protection. When you move locally, the rates and methods of accessing these rates will vary from company to company. Some may charge you a flat rate, while others will charge based on how long the move takes (hourly). No matter how you are charged, you should be asking some important questions.

• What is the total coverage you get? 
• What is the limit per individual item? 
• What is the deductible?
• What type of coverage is being offered? 
• Who do they use for furniture repairs?
  

Stallion Partner Coverage

Your Stallion partner may not offer the same insurance options but will offer at least basic insurance. It is important to verify and check what insurance types your Stallion Partner may offer prior to the move. If they do not offer the insurance you are looking for, there are 3rd party insurance companies that will ensure your goods during travel. You can also see if you have protection from your current "contents insurance policy" for your home.

All insurance claims will need to be dealt with directly through your Stallion Partner. 

Stallion Insurance Coverage Options for Moving

Stallion offers several Insurance options; everything from Basic Coverage that is Included to Full Value Protection. Claims submitted to Stallion will be subjected to a thorough investigation and requires evidence for proof of claim. All insurance cover

We recommend every item of value be inventoried by you unless you wish to pay us to do it for you at a per hour rate. If we don't have pictures before and after damage we cannot prove that we are responsible. Please take the initiative if you do not want to pay for us to do it for you. We just don't have time to inspect every item in our care while we are moving. We want to be fair to everyone and we will do what we can to assist you if the need should arise. Items will be fixed at the discretion of Stallion via the Stallion Team or our preferred outside professional Rob. If an item is damaged beyond repair we will pay out at the coverage that you have purchased. Again please see our terms & conditions page for further details!

As a final reminder make sure you are working with a reputable moving company! The last thing you want to do is have an issue and be left without knowing your rights and responsibilities.  We'd love if you choose to move with Stallion and you can hit that big book my move button at the top.