Insurance Plans & Liability
Liability Plans & Insurance. Customers will often ask movers, “What kind of insurance do you have in case something is lost or damaged?” While the Commission requires the mover to have cargo, auto, and general liability insurance, the settlement of your claim is defined by the valuation you select. Valuation establishes the total value of your shipment in case of catastrophic loss and also governs how the mover will resolve your claim for loss of or damage to individual items. The type of valuation will cover the entire shipment; you cannot select one type for part of the shipment and another one for select pieces. You must explicitly indicate your choice in two places: on the Bill of Lading and on the Addendum to the Bill of Lading (making sure that they both show the same choice).As discussed below, there are 2 types of valuation available for weight/distance moves.
Basic Value Protection. No Charge: The mover’s maximum liability will be 60¢ per pound based upon the weight of any lost or damaged items, regardless of its actual value. For example, damage to your refrigerator weighing 400 pounds would result in a maximum claim settlement of $240. Basic Value Protection provides minimal protection, and it is possible that settlement of any claim under this level of valuation will not be satisfactory to you. Under this type of valuation, for example, if the total weight of your shipment is 8,000 pounds, then the total value of your entire shipment is established to be $4,800.
Full Value Protection. The minimum value of the shipment will be $6.00 times the weight of the shipment. However, you have the right to declare that your shipment has a greater value and pay for that increased protection. If items are lost, the mover will have the options of replacing them with articles of like kind and quality or paying the replacement cost as determined by current market value. If items are damaged, the mover will have the same options, plus the additional options of repairing the items or paying the repair cost. All damaged items that are either replaced or reimbursed at full-market value become the property of the mover. Under this type of valuation, for example, if the total weight of your shipment is 8,000 pounds, then the total value of your entire shipment is established to be $32,000 and the charge for that level of protection would be $240. However, if you decided that your shipment has a greater value, maybe $45,000 rather than the calculated minimum of $32,000, you could establish that your shipment value is $45,000 and the charge for that level of protection would be $337.50.
What’s not covered. As important as what is covered, is what is not covered. With valuation coverage, movers are not responsible for items in boxes they did not pack. Unless the box shows significant damage, you are not likely to be covered for damage to anything inside the box. You are also not covered for “natural disasters,” such as fire, hurricane, tornado, windstorm, hail, etc. Also, if the items are damaged while in storage that is not controlled by the moving company, you are not covered.