Be aware of potential problems with moving companies
We all heard of hair-raising stories about moving companies that refused to unload the furniture from their truck unless the client agreed to pay more than the contracted amount. We are bringing this article to help you deal with moving companies, and how to understand the terminology of their contract.
Different Types Of Estimates: Understanding the Terms
Binding:
The mover offers a guaranteed price, within a small percentage of deviation, that is based on a complete list of items to be moved and the type of service performed.
Non-binding or hourly rate:
This is not an estimate at all, only a price list. These rates are based upon the movers' previous experience of jobs similar to yours.
Not to exceed:
This quote is binding only on the mover. The final price for the move cannot exceed the estimate figure; but if the move comes in under the estimated amount you pay the lesser price.
The best estimate that you can get is the not to exceed estimate. Like binding estimates, not to exceed estimates are based upon an accurate and complete list of items that you expect to have moved. However, the not to exceed estimate gives you a little bit of leeway if you happen to decide on bringing extra items with you on the day of the move. Keep in mind that if the extra items exceed the not to exceed estimate, you will be charged more. However, if the final bill comes out to be lower than the estimate, you pay the lower price and nothing more. We strongly recommend that you ask your mover to offer this one to you. Get it in writing
One thing to look out for when dealing with a not to exceed estimate is if the mover sees that the job will cost more than s/he anticipated, s/he may cut corners on the packaging of your items. Despite the fact that you have provided all necessary and truthful information about your items, s/he may have misjudged the estimate; after all s/he is human. S/he might provide your furniture, etc. with minimal wrapping and hope for the best.
Insurance for any type of move is essential. By law, the mover must provide you with insurance. Get the best coverage for your items, depending on what they may be. The mover will provide you with minimal coverage. For example, for a broken television that weighs 40lbs, at a rate of 60 cents per pound, the most you will receive is $24.00. Only items with damage visible to the naked eye will be insured. Internal problems with electronics will not be recognized under the minimal coverage. We elaborate on insurance later in this article.
Not to exceed estimates are very popular for long distance moves, but not so for local moves. Long distance moves are mainly based on weight and distance; time isn't as much of an issue, whereas with local, time is everything. Typical problems such as heavy traffic and bad weather prevent the local mover from offering you this type of estimate.
Moving Insurance: Understanding Different Types of Coverage
Insurance/Valuation, Coverage & Claims
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might be the most problematic and misunderstood part of any moving contract. You can buy three levels of insurance/valuation coverage:
Limited Liability...
is the minimum coverage required by law, and is included in the base price. You will receive 30 cents per pound (60¢ per pound if moving long distance) for any lost or damaged item. While this coverage is better than nothing, limited liability insurance places your more valuable objects at a greater risk. For example, if your mover were to drop an antique crystal glass that weighs half a pound, all limited liability insurance would pay is 15 or 30 cents. If the moving truck disappears into the mist and is never seen again, the most the insurance company would ever pay is the legal maximum $500. Because of these possible situations, we suggest you buy extra insurance for your upcoming move.
Lump Sum Value...
coverage requires that you declare how much each of your items is worth. Based on this valuation, you pay a premium that is generally less than 1% of the value covered
Full Value Protection...
is the Rolls Royce of insurance coverage. This policy guarantees that the insurance company will replace any article that is lost or damaged beyond repair with either a like item or a cash settlement. Any cash settlements made will be in the amount of the current market replacement value. The exact cost for full value protection varies from mover to mover.
Important Notes
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Check your homeowner's insurance. Some policies cover property in transit.
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Consider purchasing short-term insurance that covers the move if your property is very valuable.
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Unlike most property insurance, valuation does not automatically pay for any damage. It must be clearly shown that the mover was responsible for the damage.
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Items in boxes not packed by the mover are not covered, unless the outside of the carton provides clear evidence that the entire box was damaged during the move. Make sure the mover acknowledges obvious external damage to boxes, if there is any.
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The mover is responsible for any electronic item that does not function after the move only if there is clear evidence that the item was dropped or mishandled during the move.
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The customer has nine months after the move to file an initial claim against the mover.
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The mover is legally obligated to acknowledge any claim within 30 days and to resolve it or offer a settlement within 120 days.
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The customer is legally responsible to pay for the move, even when claiming extensive damages. The customer must go through the claims process to receive compensation for any damages.
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If a settlement cannot be reached, the customer either can sue the mover or seek arbitration.
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Check with your Better Business Bureau; often it will be able to provide you with a company's track record in handling claims
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Although the source of this article is unknown, It is brought to your attention to alert you to potential problems
with home movers.
Please consult a Lawyer who is knowledgeable in your state specific law on this subject.