Removal Company Deposit – Should I Pay One?

Do Removal Companies Charge a Deposit?

Yes, No, Sometimes, Always.

Some charge no deposit, some request a non-refundable deposit, some a refundable sliding scale deposit, and others require the full amount to be paid at the time of booking.

Others will want a deposit for a Friday moving date only (this being the busiest moving day of the week).

Nearly all removal companies will want the entire removal costs paid upfront if it is a particularly large or complicated home move (for example if special lifting equipment has to be hired).

The deposit policy changes again when embarking upon an International home move, depending on how your goods will be shipped.

Confused? Not surprising, as there seems to be no industry standard approach, so let’s try to figure out exactly what is going on here……..and why.

Should a Removal Company Ask For a Deposit (or full costs upfront) and Why?

Home move dates are unstable at best, especially if you are in a home moving chain.

The longer the chain, the more likelihood that someone will pull out, or there will be a delay due to uncleared funds, a change of circumstance, or incomplete paperwork for example.

Although it is recommended to book your removal company as soon as possible, you can only be sure of your move date when you have exchanged, but there is still a risk of cancellation on moving week or even moving day.

I have had completion day, and therefore moving day, cancelled a week before, a day before, and even on the actual move day. Not only is that heartbreaking for all concerned, but very expensive!

Of course, if you are moving out of a rented property, you will likely be in control of your moving date and therefore will have little risk of your move date changing.

But the removal company has bills like everyone else to pay: fuel, taxes, wages, rent, and vehicle maintenance to name but a few.

It would not be logical to just have removal teams and vehicles sit around waiting on the off chance that there was a home move that day.

If a home mover cancels on the day, all those expenses still have to be paid, and without an income to do it, hence why most removal companies ask for a deposit or have booking fees.

What would you do if it were your business?

Wait around on the off chance that Mr & Mrs Smith will move next month, which they have still not confirmed, or take a firm booking, with a deposit, from Mr & Mrs Jones who have exchanged contracts (or are moving out of rented accommodation)?

So, if your removal company says you can change the dates of your move as often as you like with no penalty, is that really logical?

Is it likely that just as you can say, ‘Sorry, I will not move today’, that they could also say, ‘Sorry, we cannot move you today’?

Or is it likely that they will subcontract your home move-out, so the super professional, reliable company you thought you were hiring, is being replaced with John and his Mate in a hire van?

Ensure you clarify, when choosing your reputable removal company, exactly what their terms and conditions are regarding sub-contracting your home move.

You may also like to read: Questions to ask your Removal Company. In this guide, we suggest the questions that you should ask any removal company that you are thinking of hiring.

When to Pay an International Removal Company

How your household goods are shipped will affect how much you pay in terms of a deposit.

If your goods are being shipped in a shared container you may find that you only have to pay a deposit (again no fixed sum is universal but some charge by percentage of total cost).

Other International Removal Companies will require you to pay the moving costs upfront, especially if you have the sole use of a shipping container or vehicle.

Obviously, the removal company will have to book space on the ship or aircraft, visas or other associated customs paperwork will have to be organised and paid for, as well as a myriad of other administration and logistical things to ensure are in place.

It is therefore only logical that a reputable international removal company will request payment upfront so that all the costs that they will incur will be covered.

International Removal Companies who are members of the British Association of Removers (BAR), offer you the protection of the International Movers Mutual Insurance (IMMI) Advance Payment Guarantee Scheme.

Should your removal company go out of business, BAR will appoint another member to undertake the remainder of your contract at no additional expense to you.

You may also like to read: International Home Moves – The Ultimate Home Moving Challenge? In this guide, we explain all you need to know about international home moves.

Do You Pay the Removal Company Before or After the Move?

This varies by company but is most commonly 5-7 days before moving day.

What happens if I pay a Removal Company Deposit and they go out of business?

In this scenario, it pays to have booked your home move with a member of the British Association of Removers.

You will then be covered by the BAR Advanced Payment Guarantee.

This essentially means that any monies you have paid to a BAR member for your home move will be refunded in full to you should that removal company go out of business.

For the full details of how this works, just follow this link.

If your removal company is not a member of BAR you may have some cover if you have paid by credit card, so check with your card provider.

It would be prudent to read your removal company’s terms and conditions to see if there is any contingency should the removal company go out of business.

You may also like to read: Home Removal Industry Trade Associations and Bodies. In this guide, we look at what being a member of one of the trade associations means to you as a customer.

Home Removal Company Cancellation Waiver (Cancellation Insurance)

As previously mentioned, up to a certain number of days before your moving day, some removal companies will allow you to cancel your removal services free of charge.

After that set time you will incur charges, typically this will be a percentage of the total removal costs on a sliding scale of the number of days’ notice given before moving day, for example:

• 10 days = No penalty
• 5-10 days = 30%
• Less than 5 days’ notice = 60%
• 1 Days’ notice = 75%
• Same-day cancellation will mean you pay the entire removal costs.

You can, however, take the option of a home removal cancellation waiver which will cover these costs in the event that you have to cancel your removal company.

Usually, the cancellation waiver costs about £50-£90, although some removal companies may charge as a % of your home move cost.

Late Key Waiver Insurance When Moving Home

A common occurrence on moving day is that the release of the keys to your new home is delayed due to uncleared funds.

Understandably, in those instances, your removal company may charge you an additional cost for the waiting time at your new home.

Your Removal Company may offer you a late key waiver which will take the stress out of this unforeseen cost on moving day.

Speak to your insurance provider or Removal Company about this option on your insurance cover.

On average this will add about £50-£70 to your insurance cost.

Additionally, it is possible to take out a furniture delivery damage waiver, which you can ask your insurance provider about.

You may also like to read: Home Moving Insurance – Do I Need It? Being underinsured is one of the most common home moving mistakes. In this guide, we tell you all you need to know about insuring your home move.

How to Avoid Removal Company Scams

A classic removal firm scam is that the ‘company’ takes your deposit, or the entire removal costs upfront, and is never seen or heard of again.

Be wary of removal companies who want payment upfront unless you have the protection of the BAR advance payment guarantee.

And any removal companies demanding full payment, upfront, in cash, walk away.

They may be perfectly legitimate, but would you really take that risk?

The only way to avoid moving company scams is to ensure that you hire a reputable removal company.

You may also like to read: How to Pick a Good Removal Company – The Ultimate Step-by-Step Guide. Choosing the right removal company is so critical that we have created a step-by-step guide to picking the best removal company for your particular home move.

So, the bottom line is, that there is no generic policy across the home removal industry for paying deposits or even when to pay your home removal bill.

Each removal company is free to stipulate the payment terms and conditions.

This means that you need to exercise particular caution when hiring a removal company to ensure that you do not fall victim to a removal firm scam.

You may also have to factor in the full home removal costs into your moving budget if you did not expect to pay the removal costs until after the home move, for example, if you were planning on paying the bill out of the equity in your home.

But, follow these golden rules and you should experience a stress-free home moving experience, with no nasty extra costs!

• Get a moving estimate from a reputable moving company.
• Thoroughly research the removal company.
• Ensure you know what the payment terms and conditions
• Thoroughly read the removal company cancellation policy so you know what it contains.
• Have the removal company’s terms and conditions in writing so that you know exactly what their deposit and cancellation penalties are.
• Consider taking out a Removal Company cancellation insurance policy.
• Communicate with your removal company so that they are aware of any date changes as soon as possible.

Good luck and happy home move!