Transportation Insurance
What is the moving company's liability?
All companies are required to assume a minimum liability for the goods they transport called released value.
Movers generally do not offer insurance, they offer valuation.
Valuation is the ability to value your items at a certain amount. Moving companies may offer insurance through a 3rd party insurance broker. Do not waste money and over value your goods. If everything were to disappear, you would not get the amount of valuation you purchased, you get the right to assess a value to your goods up to the amount of valuation you have purchased, but YOU have to prove that value. Take pictures of all your goods and save all your receipts. The minimum liability for a long distance move is $.60 per pound. What this means is, lets say you have a piece of furniture that weighs 50lbs, and is moving interstate with a the value of $1000.00. Under released value, if the mover damages or loses it, you will receive only $30.00. That's right! All companies must offer additional valuation, and in most cases, it's beneficial that you take some. Check your homeowners' policy, in some cases they will cover your goods in transit.
What is the Depreciated value valuation?
This type of valuation values your goods at the time of loss, NOT the original cost and not by the weight of your goods. In the moving industry, there is a book titled The American Moving and Storage Association Table of Weights and Depreciation guide, which has depreciated values for most goods you would find in an average household. Most movers use this guide to determine the value of an item or items when settling claims. Under the depreciated value valuation option, the mover is required to assume a minimum liability equal to $1.25 per pound, times the weight of your shipment. For ex. If your shipment weights 2000lbs, the minimum amount of valuation you could purchase is 2000lbs X $1.25 = $2,500.00 of valuation. This type of valuation costs $7.00 per $1000.00. So $2,500.00 of liability will cost you $17.50. Let's say you are only shipping 2000lbs of goods, but the value of the shipment is more than $2,500.00. You have the right the purchase the amount of valuation to cover the value of your goods. If you have a shipment value of $10,000, at $7.00 per $1000.00, $10,000.00 of declared value will cost $70.00. This values your whole shipment and/or any one or more items in the shipment, up to the amount of valuation you have purchased. For ex. If you purchase $10,000 of valuation while shipping a 6-room house and the $10,000 grand piano gets destroyed, they would be responsible to pay the depreciated value of the piano up to the $10,000 you insured your shipment for. It is not pro-rated. If you plan on shipping articles of extraordinary value, notify the mover so you can declare their full value on special paperwork. If you do not, the mover has limited liability up to $100.00 per pound. Anything over and above that, you will not be covered.
What is the Replacement value valuation?
This option values your goods at the replacement value at the time of loss. Each mover has different policy's covering replacement value valuation, so be sure your representative explains the specifics of these individual replacement value options. With this type of protection, they assess a minimum liability of $4.00 per pound times the weight of your shipment.
For ex. If your shipment weights 2000lbs, the minimum amount of valuation you could purchase is 2000lbs X $4.00 = $8,000 of valuation. Most Van Lines offer deductible provisions for lower premiums. Be advised that these deductibles apply only to damage, not for loss. Whether or not you purchase additional valuation, make sure you sign for either released value ($.60 per pound) or any other option you choose on both your order for service and bill of lading.
This MUST be done before the movers start loading your goods.
What is the Local liability?
Basic Basic liability for a local move varies for each state. Check with your local moving company to see what you basic liability is.
You may obtain additional insurance through your own insurance agent or broker. We understand that valuation/insurance is a commonly misunderstood subject. |
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