Why You Should Hire Licensed and Insured Movers in New York

Whether you’re moving out because you’ve found a more affordable option or your lease is up, chances are you’ll need someone to help you move. If you’ve decided to hire local NYC movers, you’re probably overwhelmed with the amount of options available. With so many choices, how do you narrow down the field? After all, you don’t want to call every moving service in New York City. Not only is it a waste of time, it can make you even more confused and could lead to a potentially bad choice. You might think that simply doing a quick search for ‘movers near me’ might help improve your choices, but not all moving companies are created equal.

Before you make your NYC move, you should do a bit of research on nearby moving companies to see what kind of operation they’re running. Sure, your local man with a van might be tempting, especially if you’re on a budget, but what happens if they break/lose your items or damage the building when you move in or out? Without proper licenses and insurance, your move can become complete chaos and can end up costing thousands more than you planned.

Of course, it’s not just dealing with broken items. Some scam movers might steal your belongings or even charge you 300 percent more than the original quote. It’s important to know what red flags to look out for so you can avoid potential scams. Luckily, a professional moving company will have their information available on their site or when you call.

What is a “licensed mover”?

Depending on where you live, every moving service has to adhere to a set of guidelines. Some states require movers to register with the state as a moving company and offer at least two options of insurance (full-valuation or released-value). Other states have additional requirements. New York State requires registration with the US Department of Transportation as well as the New York State Department of Transportation in order to legally work as movers. In order to successfully register as a moving company on the federal and state level, moving companies have to be insured to the state’s mandatory minimum. In New York, that is $1.5 million. In addition to this, moving companies must do the following:

• Keep their registration and insurance up-to-date on a yearly basis
• File all necessary paperwork for household goods moving authority
• Provide proof of worker’s compensation and disability benefits insurance
• Have all vehicles carrying a New York Intrastate Vehicle Identification Receipt 

If you are moving to New York City, your mover should have a federal license, which means the government has signed off on their business. Being licensed means that the movers have to follow specific guidelines regarding insurance, safety measures, financial responsibilities, etc.

The best moving companies in NYC will list their license information directly on their site so you can easily look them up to check their reputation and to make sure their registration is still active. If you notice a lot of claims and negative reviews, you probably want to look elsewhere. Great Movers, for example, lists our federal and state license directly on our site so you can easily look us up.

If a company does not have their information on the site, give them a call to ask for their license information. Moving companies that have the proper credentials will give it to you with no questions asked. If the person on the other line is hesitant or tries to brush you off, take that as a sign that you should look at another company. Using an uninsured mover means you are putting all of your belongings at risk. There’s nothing to stop these movers from taking everything and not showing up. If they’re not registered with the state and federal government, you can’t report them as there is no information on them.

Don’t think it can happen to you? Unfortunately, this kind of extortion and theft happens on a regular basis. There have been several cases where unlicensed moving companies used their services as a front for crime. Some will hold your belongings hostage claiming it was lost or stolen and then extort money from you to ‘recover’ it. Others have been caught embezzling personal property. In 2022 alone, Americans lost $2.1 million to moving scams and that number seems on the rise in 2023 by 12 percent.

Even if you haven’t had any issues using unlicensed movers in the past, every time you take that chance there’s the potential that it can happen to you. Yes, hiring licensed and insured movers will cost more in the short term, but you can at least rest easy knowing that if anything does happen you can file a complaint and get a portion of your money back.

What is an “insured mover”?

There’s a difference between a mover who is insured versus one who offers insurance. If your mover is insured, it means they carry basic insurance (release-value) that will cover a very small portion of any damage or loss to your belongings. Generally the rate is something like $0.60 per pound, per item. So if you drop that ten pound, $1,000 TV, you would only get $6.00 back.

If you want a better option, ask about value protection insurance. As the name suggests, this insurance covers the total cost of repair or replacement in the event that your Manhattan movers lose or ruin valuable items. These tend to be rarer though the best moving companies in NYC will have the option. With that said, it might lead to an extra fee to your moving bill. All pro NYC movers must offer this option. With that said, full-valuation doesn’t mean you will get the full initial value you paid for your item. In fact, movers have a couple of choices on how to deal with your damaged/lost goods including:

• Repairing your item
• Replacing it with a similar item
• Providing payment for the current value of the item

If you opt for full value protection, make sure you tell the movers the value of every item you own, especially very valuable items such as cameras, paintings, etc. A moving company’s liability for items of extraordinary value (items valued at more than $100 per pound) is limited to $100 per pound unless you let them know beforehand in writing. If you don’t declare these items, the company’s max liability will be limited to $6 per pound per multiplied by the weight of your shipment.

Speaking of coverage, the value protection options only protect your belongings if they are damaged in transit. It does not cover your belongings if they are damaged in a third-party storage unit. So if you need protection during storage, make sure to use the moving company’s storage option. You should also be aware that you are not covered if the items in the boxes you packed yourself are damaged during the move unless the box itself is severely damaged.

Since NYC moving companies are not authorized to sell insurance themselves, you will have to purchase coverage from a different provider. Before paying for extra insurance, make sure to see what type of coverage your renters insurance offers. You can then choose an option that fills in the gaps. Different types of insurance will offer more or less coverage so before you buy one, you should decide what kind of coverage you need. The below are some examples you will find:

• Damage from tornado, flood, lightning, etc.
• Mechanical damage to electrical components
• Single item coverage
• High-value item (more than $100 per pound) coverage
• Loss from mold and mildew
• Theft
• Damage from an accident during transit

Okay, so the above describes a mover who offers insurance. What about a mover who is insured? All professional movers in New York should have a few different types of insurance. The first one is liability insurance. This covers any damage done to the property as well as any injuries that might happen should a passerby trip over a poorly placed box. Most companies have at least $1.5 million in coverage. Naturally, pro NYC movers will do everything in their power to avoid any damages to the buildings by protecting the walls with padded blankets, placing plastic coverings for the floors, and carefully navigating tight stairs and narrow halls.

What happens if they don’t have insurance? You get stuck with the bill. Depending on the severity of the property damage or injury, this could cost you hundreds of thousands of dollars as well as court fees and appearances, lawyers, etc.

Another type of insurance movers should have is worker’s compensation. Should one of the movers injure themselves on the job, this insurance will help cover their medical bills and any missed work due to an injury. While everyone on a professional moving team goes through the appropriate training to learn the appropriate safety procedures, injuries still happen. After all, moving is a strenuous line of work, so it’s important that home movers have the ability to take care of their workers. If they don’t offer workers compensation, you will get hit with the bill. There have been some scams where uninsured movers will fake an injury to extort money from the unsuspecting customers. Don’t fall for it! Make sure to confirm that they have the appropriate insurance and have them send over proof!

When it comes to proof, you should ask movers for a certificate of insurance (COI). The COI isn’t insurance, but it does show that the NYC movers have different types of insurance in one easy-to-read form. Many highrise buildings require this before allowing movers to enter the building as it shows that the movers are properly insured and will cover any damages that happen. In some cases, you won’t even be able to reserve time to use the freight elevator until the management company receives a COI. Keep in mind that some buildings require more insurance than others, so make sure you request a COI template from your new and old building before booking a mover. If the movers don’t have all the requested forms, they won’t be able to enter the building. If that happens, you’ll have to spend extra money rebooking the movers and putting your belongings in storage or waiting potentially hours to get an updated COI.

Make sure to also request a copy of the COI be sent to you just in case your management company doesn’t receive it from the movers. It’s also a good time to check the information to make sure there aren’t any issues such as the total insured amount, the name on the COI not matching the name of the moving company, and the policy date ending before your move.

Conclusion

Every move in New York is unique and requires specific skills and expertise. Careless moving is generally what every homeowner wants to avoid. While it might require a bit more time and money upfront, making sure your moving company has the proper licenses and insurance will save you a lot of issues after the move. The top movers in New York and beyond are always happy to provide as much information as possible because they have nothing to hide.

If you’re looking for a well-respected local NYC mover, we’re an excellent option. We at NYC Great Movers are both licensed and insured so we can make your next move easy. We can relocate your belongings without damaging them and at a reasonable price to boot.

To inquire about our services, you can get in touch with us:

Phone: 718-569-7124, (888)922-7271, (732)384-1604
Email: info@nycgreatmovers.com
Web: www.nycgreatmovers.com
Yelp: http://www.yelp.com/biz/great-movers
Yp: http://www.yellowpages.com/brooklyn-ny/mip/great-movers

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