Understanding Moving Insurance and Liability

Protecting Your Household Goods: What If Something Is Lost or Damaged?

Are you moving?
There's a lot at stake when you move. There's the money you'll spend. The memories you're taking from one place to another. And, your treasured possessions—furniture, family pictures and children's toys. When you move, your personal property (including valuables) is loaded onto a moving truck. And while most moves go smoothly, accidents do happen and some items may be lost or damaged during shipment.

Your mover is liable for the value of the goods you ask them to transport. There are, however, different levels of liability. The level you choose will determine the type and amount of reimbursement you will receive if an item is lost or damaged. Be aware of the various types of protection available and the charges for each option. This brochure will serve as a tool to assist you in making the right choice for you.

The two different levels of liability movers are required to provide are explained below and in Your Rights and Responsibilities When You Move, a booklet movers are required by Federal regulations to provide to interstate moving customers. Be sure to read this information carefully and follow the instructions provided to declare a value on your shipment.

What are your options?
Under Federal law, interstate movers must offer two different liability options referred to as valuation coverage: (1) Full Value Protection and (2) Released Value

(1) Full Value Protection
Under Full Value Protection, your mover is liable for the replacement value of lost or damaged goods in your entire shipment. This is the more comprehensive plan available for the protection of your belongings. Unless you select the alternative level of of liability described below—Released Value—your mover will transport your shipment under the Full Value Protection level of liability. If any article is lost, destroyed or damaged while in your mover's custody, your mover will, at its discretion, offer to do one (1) of the following for each item:

· Repair the item

· Replace with a similar item

· Make a cash settlement for the cost of the repair or the current market replacement value

Under this option, movers are permitted to limit their liability for loss or damage to articles of extraordinary value, unless you specifically list these articles on the shipping documents. An article of extraordinary value is any item whose value exceeds $100 per pound (i.e., jewelry, silverware, china, furs and antiques). Ask your mover for a written explanation of this limitation before your move.

The exact cost for Full Value Protection varies by mover and may be subject to various deductible levels of liability that may reduce your cost. Ask your mover for written details of their Full Value Protection plan.

(2) Released Value
The most economical protection available is Released Value, since it is offered at no additional charge. However, the protection is minimal. Under this option, the mover assumes liability for no more than 60 cents per pound per article. For example, if your mover lost or damaged a 10-pound stereo component valued at $1,000, you would only receive $6.00 in compensation (60 cents x 10 pounds).

There is no additional charge for Released Value. However, you must sign a specific statement on the bill of lading or contract agreeing to it. But remember, it compensates you according to the weight of the item, not its actual value. And, if you do not select Released Value, your shipment will automatically be transported at the Full Value Protection level of liability and you will be assessed the applicable charge.

Full Value Protection and Released Value are not insurance policies governed by State insurance laws; instead, they are Federal contractual tariff levels of liability authorized under Released Rates Orders of the Surface Transportation Board of the U.S. Department of Transportation.

Third-party Insurance