How to Verify a Moving Company’s Insurance Coverage: A Step-by-Step Verification Guide
Protect your move by confirming any potential movers have active cargo insurance and liability coverage at recommended minimums.
When hiring professional movers to transport your household possessions, checking they have adequate trusted moving companies insurance is essential.
This ensures compensation if belongings are damaged or lost. Here is a step-by-step guide to requesting, reviewing and verifying moving insurance certificates.
Why Verify Insurance Coverage?
Uninsured or underinsured movers leave clients financially exposed if valuables get broken or go missing. Effects include:
- Out-of-pocket costs replacing items
- Unable to claim tax deductions for losses
- Few legal remedies without insurance
94% of complaints filed against interstate movers relate to claims for lost or damaged items. Confirming appropriate coverage protects against headaches.
Know Recommended Minimums
Before calling movers, know advisable liability minimums from the Federal Motor Carrier Safety Administration (FMCSA):
- $750,000 for truckload moves
- $250,000 for small shipments
- $50,000 for office/apartment moves
Cargo insurance minimums depend on shipment value. Standards:
- $20,000 for a 3-bedroom home
- $100,000 for luxury furnishings
- Over $1 million for corporate relocations
Use these as a guideline when assessing if coverage appears suitable.
Step 1 — Ask Prospective Movers for Certificates
When getting quotes from moving companies, request they provide current proof of both cargo insurance and liability insurance.
Certificates should clearly list:
- Insurance company
- Policy number
- Coverage types
- Dates effective
- Applicable limits
Reputable movers readily provide these validation documents.
Step 2 — Verify the Insurance Provider
Before agreeing to a mover, independently confirm the insurance company itself is real and reputable.
Red flags include providers that:
- Cannot be easily looked up online
- Lack contact info on the certificate
- Are only mentioned on the mover’s website
Additionally, search the insurance company name along with words like “review”, “rating” or “scam” and read any troubling reports.
Step 3 — Validate Policy Details
Next, reach out to the insurer directly for verbal confirmation of key details:
- Policy holder — Should match the mover’s full legal name.
- Policy number — Verify it is accurate and matches the certificate.
- Coverage types & limits — Confirm cargo, liability and other protection matches certificates.
- Policy status — Ensure policy active and premiums fully paid.
Document name of representative and date for records.
Step 4 — Review Carrier Safety Records
One final prudent check is searching the safety track record of the mover’s cargo insurance provider.
- For interstate movers, check FMCSA registration.
- Search online for company name plus “FMCSA safety rating”.
- Avoid any flagged for compliance failures.
Other Protection Considerations
Beyond core insurance policies from movers:
- Review need for separate valuation coverage or depreciation waivers to cover the full replacement value of possessions.
- Consider renters or homeowners insurance provisions for goods in transit.
Checking they extend to professional movers filling trucks at origin and destination addresses is wise.
By thoroughly vetting moving companies’ insurance certificates, clients gain confidence valuables remain protected.
64% of problems with movers relate to claims on lost or broken items. Adequate coverage is essential. Following this verification process helps ensure peace of mind.