“Three moves equals a fire,” goes an old adage that describes how all the ancillary costs of three rounds of home buying and selling are equal to the tab for replacing all of your belongings.
Even though escalating real estate prices have been pumping bigger profits into sellers’ hands, they still need to keep their eye on all those extra fees to actually end up dollars ahead. Moving company charges are especially difficult to get a focus on, because they involve estimates and choosing from a menu of services. Consumers tend to have disputes about either the final bill for a move or breakage, says David Farrell, spokesman for the Illinois Commerce Commission (ICC). The number of complaints fielded by the ICC, the agency that regulates moves within the state, has risen to about 250 annually from 150 three years ago, Farrell says.
The most outrageous moving company complaints involve unscrupulous firms holding an owner’s belongings hostage until they pay a certain fee, says David Longo, spokesman for the Federal Motor Carrier Safety Administration. Fortunately, such instances are rare relative to the millions of moves each year, Longo says. But even amid all the hassle of buying and selling, it’s best to wrap up moving worries with some intelligent background work:
– Look for a license. Moving companies that tote your belongings across state lines should be licensed with the Federal Motor Carrier Safety Administration. Licensed interstate movers should then follow federal regulations, like agreeing to arbitration for disputes up to $5,000. Check the Web site www.safersys.org to see if a particular company is licensed. Also, the safety administration runs a hotline at 888-368-7238 that consumers may call to see if there have been complaints lodged against a firm.
Additionally, the national trade group for movers, the American Moving and Storage Association, lists companies that have completed certification and provides many consumer tips for interstate moves.
The ICC is trying to reduce the number of fly-by-night firms operating in Illinois. To ensure that you’re hiring a licensed firm or to investigate for complaints against a company, call the ICC at 217-782-6448.
The Illinois Movers and Warehousemen Association, the statewide trade group, will provide referrals of moving companies, says spokeswoman Pat McLaughlin. Consumers may e-mail the group at its Web site, www.imawa.com, or call 217-585-2470. “We stress that people should always call the ICC to find out about a company, even when they get a referral from us,” McLaughlin says.
– Check the true cost of insurance. A moving company is likely to offer a couple of layers of insurance protection beyond a prescribed minimum. Even though most standard homeowner policies will also provide coverage on items lost or damaged in a move, more people are choosing to insure with their moving company instead of relying on the homeowner policy, says Andy Swets, with Kropp Insurance Agency in Morton Grove. “You are usually covered for 10 percent of whatever the personal property limit is in your policy on losses that occur off premise. A loss during a move is treated just as if you were on vacation and your suitcase got stolen,” Kropp explains. But because insurance firms have been raising premiums if homeowners file even a single claim, Swets says people should check with their agent to discuss whether the policy provided by the moving firm is more economical in the long run.
– Deduct the costs of work-related moves. The IRS says that if you move to a new home for a change in your principal workplace, you may be able to deduct your moving expenses not matter whether you are self-employed or an employee. But, you must meet specific rules on the amount of time you’ll be working and how far you’re moving. Your new principal workplace must be at least 50 miles farther from your old home than your old workplace was, for instance. Check Form 3903 available at www.irs.gov for details.
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