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Cargo Insurance: Don’t Assume. Be Sure.

So, you’ve finally decided to send that furniture across the country, or just across town. Or, you want to ship your dream car to fix it up and exhibit it in a car show. With uShip, you have access to thousands of feedback-rated service providers in an easy-to-use marketplace that takes the hassle out of transporting your prized possession. But, in the event of damage or loss, are you in good hands?

All Things Considered

Depending on the value (monetary or emotional) of the item that you are shipping, like your boat or furniture, and your risk tolerance, you should consider purchasing additional cargo insurance coverage. It’s about five percent of the total cost to you ship an item—an affordable option to rest easy.

‘I Just Assumed I Was Covered’

Never assume you’re covered by an existing policy. If the item is shipping from your home, and if you have homeowners or renters insurance, it may be covered under your personal policy, up to a value limit. However, if the item is coming from a different location, your policy likely does not cover it.  And the transporter may have coverage limitations as well.

When you ship your car, motorcycle, or boat, if it’s going to be driven on roadway or waterway, it will require an insurance policy—specific requirements vary by state. That coverage may protect the item being transported – but generally only in the event of fire, wind, hail, tornadoes, lightning, theft, and possibly lions, tigers and bears. But it’s important to note that it usually doesn’t cover wear and tear, or accidents, during transport. Consider booking with Enclosed Transport over Open Transport depending on the value you place on your vehicle. Or, even better, get cargo insurance.

If the item will not be driven on the parkway, but rather parked in the driveway while being restored, you aren’t required by law to have insurance coverage. In that case, you will want to consider purchasing insurance coverage for that particular shipment while in transport, either from the carrier or the marketplace facilitating the transport.

Fragile items benefit from cargo insurance

Verify, Verify, Verify

So, it is important that you verify with your carrier exactly what their insurance policy covers in the event of damage or loss to your item. Ask the companies you are considering for their insurance certificate—they are required by law to have one. Determine exactly what kind and how much coverage the moving company provides for property loss and/or damage. Some transporters have limitations on coverage. And, packing requirements can be another sticky area.

Some transporters don’t protect a package that is not packed properly. So, don’t stick a sculpture in a plastic bag and ship it, for example. Choose Blanket Wrap for furniture – have your provider prepare furniture and other fragile items for shipment. Packing requirements usually can be found in the policy information of the service provider.

What You Need To Do

You will want to consider the present value of your shipment and the cost of the coverage. When selecting a deductible, remember that it is the amount you will pay out-of-pocket should a loss occur. So, choose one that fits your specific financial needs. The higher the deductible, the lower the cost of the insurance premium.

The final value of an item is determined by the insurance adjuster. We recommend that you have some documentation (appraisals, photos, receipts, bills of lading, etc.) prepared to provide to the insurance company—just in case you experience loss or damages along the way.

Learn more about cargo insurance and how to ship with confidence through uShip.