How does moving insurance work in Ontario?

If you have ever moved you have probably got in contact with a moving company. And if you know about them, you must have heard about moving insurance. It doesn’t matter if you move just a few blocks away, or all the way across the country, you want to know that your belongings are safe and secure. Having insurance, in general, is a backup plan. Just in case your stuff gets lost or damaged. Those, of course, are basics of how does moving insurance work in Ontario. There are more things to it and you’ll find everything you need to know about it in this article.

What exactly is moving insurance?

For starters, we need to clarify one thing. Moving insurance isn’t actually insurance. The thing is, moving companies offer a service that is called valuation. And it functions pretty much the same as insurance does. The movers ensure that they’ll cover the price of your belongings in case of damage or loss. For instance, they would refund if something went wrong when moving your art collection. However, they’re not allowed by the government to sell insurance and therefore they’re not governed by federal regulations. The bottom line here is, that valuation service functions just like insurance and that’s its purpose.

Calculator at the top of the bills.
 Moving insurance goes by different names, but it does work like insurance.

Different types of valuation (moving insurance)

There are two specific kinds of valuations that pretty much all good and reputable moving companies offer. And these are essentials of how does moving insurance work in Ontario.

Released value protection

This is the most basic coverage that you can get. They usually won’t charge you, but you have to ask to get it. Now, you’re not getting extra charged for this service, but the truth is that your coverage is minimal. Moving companies usually assume liability at just 60 cents per pound of article. And that really isn’t much. For instance, if your big flat-screen TV gets damaged, you’ll get much less than it actually is worth. This all means that there’s no chance that your stuff will be replaced or repaired. You’ll just get a monetary compensation that may be far from ideal. Because of all of this, finding reliable experts when moving is essential if you don’t want to pay extra.

Full value protection

The other insurance option is full value protection. Now, this coverage is much better than the released value option. However, you have to pay a premium upfront.  If you don’t, many policies are deductible, which is not good if you’re packing for international relocation.

Now to clarify, full value protection pretty much means that your movers are liable for replacing anything from your belongings that get lost or damaged. You declare what you think that things are worth but per pound, and then you pay a premium by that price. Most moving companies in Ontario have their own policies about full value protection, so they usually give you the lowest value you have to claim to get this type of insurance.

Broken egg as a metaphor for breaking stuff during the move.
 It’s pretty simple how does moving insurance work in Ontario, with full value protection movers will cover the price if anything breaks during your move.

On the subject of how it works the things are simple. You file a claim under full value protection and your moving company has 3 options for fulfilling it.

  • Repairing the item
  • Replacing the item with one that is of comparable value
  • Make a payout for the cost of repair on the current market

This all means that if you didn’t use the right packing supplies and your big TV got smashed beyond repair, yes it would be replaced. But you’ll have to wait and probably pay a little bit extra for that to happen. However, if the damage is smaller and easier to tackle, it would probably get fixed. And that is not a bad policy. At least repairing is good for the environment.

Why it’s important to hire reliable movers?

After all of the above, do you even need an answer to that question? With hiring reliable movers the question Does moving insurance work in Ontario? becomes How does moving insurance work in Ontario? Hiring reliable movers is a crucial thing if you want your move to go smoothly. And the reasons are numerous. But we’ll start from the beginning since this is an important subject.

You don’t have to do anything if you don’t want to. People from companies like Number 1 Movers Ontario is are experts at what they do and they can finish the job without your help easily. There won’t be any time delays, and we all know how much time is important when relocating. Your things remain safe, as reputable companies tend to keep things safe rather than to buy new items for every customer. And in the end, one additional plus that you’re getting with hiring a company is that they’re trained for any possible situation. 

Man thinking about how moving insurance does work in Ontario.
 Reliable movers are the most important thing if you want to have a careless move.

How to determine which valuation is right for you

There are a few things that you need to do. For starters, you need to determine how much your belongings are worth. Make a list of pretty much everything that you own. We know that this isn’t easy, but it would be wise to do it as you prepare for moving to Canada. If you can, take video footage of everything with your smartphone. Make sure you note any existing damage to objects at the time of recording.

After you have made your list, ask yourself what the current market value of those things is. How much for the stereo, how much for the living room chair, how much for that beer-stained couch that you have since college. Find weigh calculator online, and determine the price on your things. Do a little bit of maths and try to find out which has more sense. Released value protection, or full value protection. Sometimes it’s not bad to pay a little bit extra, but sometimes, it just isn’t logical. Now that you know how does moving insurance work in Ontario, you can be honest with yourself and decide if the additional cost is worth it.