It’s been a challenging year for the moving industry. The pandemic prompted many Americans to move, and while many companies likely welcomed the increased business, worker shortages and new health and safety requirements made it difficult to keep up. According to The New York Times, movers in New York City were so busy last summer that some of them had to turn people away.
There’s no denying it – movers have been under a lot of pressure. So that raises the question – how have the current conditions impacted moving claims?
Survey Says Claims and Scams Are on the Rise
A survey from moveBuddha shows that customer complaints about damage claims have increased 74%. That’s a lot of angry customers! The survey also shows that 27% of companies cite increased damage claims as a current challenge.
In a way, it’s understandable. Movers have been struggling to keep up with rising demand. They’re also dealing with the other effects of the pandemic. Claims happen, especially in less-than-ideal circumstances – and the last year and half has definitely been less than ideal.
But don’t expect customers to be so understanding. Moving is stressful for customers, too. At the same time, the rise in moving scams is putting many movers on guard. According to Go Banking Rates, the number of moving scams reported to the Better Business Bureau increased by 91%.
It’s a Different Story for RIG Moving Insurance Affiliates
Jeff Harrison, the Claims Manager at Relocation Insurance Group, crunched the numbers to see what kind of increase in the MovingInsurance.com claims we’ve seen here.
In 2020, our claims were up by about 20%, and the total paid was up by about 24%. It’s definitely an increase. However, between January 1 and July 26, 2020, we experienced an increase in policies of roughly 40%. Given the increase in policy volume, a higher volume of claims is to be expected.
In other words, claims are increasing, but they’re not increasing more than we would expect them to. If anything, we’re seeing fewer claims than we might expect.
Why Are Moving Insurance Claims Bucking the Trend?
We believe that there are two key reasons that RIG moving insurance claims are not skyrocketing like moving valuation claims.
- Our quality moving insurance affiliate network. Only the best-of-the-best moving companies are part of the Moving Insurance Affiliate Network, and it’s clear that you’re doing everything possible to follow packing and moving best practices and take care of customers. Thank you!
- Our proactive customer service team. Whenever anyone purchases a moving insurance policy, our team reaches out to answer questions and make sure customers understand how their coverage works. This proactive communication makes a significant difference.
How Moving Companies Can Take Control of Claims
Moving companies have been under a lot of pressure. They’ve had to deal with increased demand, worker shortages, and new COVID-19 safety requirements. It’s also been a stressful time on a personal level, and that can impact workers, too.
Nevertheless, claims management is important. Although we can expect claims to increase as moving volume increases, if you’re seeing a disproportionate surge in claims, it’s time to make some changes.
- Prevent claims. Don’t cut corners. No matter how busy you get, stick to moving best practices to prevent claims.
- Manage expectations. Proactively communicate with your customers.
- Offer every customer high-quality moving insurance. By helping your moving customers secure the coverage they need, you can also protect your moving company from complaints and reputational damage. If you haven’t already joined the MovingInsurance.com affiliate network, do so now.
- Outsource valuation claim handling. If you need help handling the surge of valuation claims you’re receiving, outsource to our moving insurance experts. To learn more, email us at claims@relocationinsurance.com.