Moving Insurance and Coverage
Your Insurance Options
It can be the most difficult and misunderstood part of any moving estimate or contract. All licensed movers must provide liability for the value of merchandise they transport, but you have to be aware of the amount of protection provided and any additional charges that may apply.
Normally there are 3 basic insurance coverage options available:
Basic Carrier Liability Insurance
The basic insurance is limit to 60 cents per pound per article.
This is called the "released value" When moving locally, consult a mover on what is the minimal liability for that particular state.
Declared Value Protection - You decide the dollar amount
Subject to an additional, minimum charge of $1.25 times the weight of your shipment (based on the depreciated value of an item). Coverage requires that you declare how much each of your items is worth.
Based on this valuation, you pay a premium that is generally less than 1% of the value covered. With this coverage the mover is liable for the entire shipment at an amount equal to $1.25 per pound times the weight of your shipment. If your shipment exceeds the liability of $1.25 per pound times the weight of your shipment, you may get full replacement liability.
Full Replacement Value - Good for high price item
Some companies provide Minimum Full Replacement Value coverage you have to decide if this is enough to cover you.
This coverage equals the replacement cost or the repair of a damaged item. The mover can sell you or procure for you liability insurance in the amount you request if you release your shipment for transportation at a value of 60 cents per pound (30 cents per pound for local move). If any damages or loss to your shipment occurs during your move, the move would be liable for an amount not exceeding 60 cents per pound per article, and the balance of the loss (up to the amount of insurance purchased) would be recoverable from the insurance company. This policy guarantees that the insurance company will replace any article that is lost or damaged beyond repair with either a like item or a cash settlement. Any cash settlements made will be in the amount of the current market replacement value. The exact cost for full value protection varies from mover to mover.
Important Notes on Moving Insurance
- Remember that movers are permitted to limit their liability for loss or damage to articles of extraordinary value, so it is your responsibility to understand this coverage.
- The mover is responsible for any electronic item that does not function after the move only if there is clear evidence that the item was dropped or mishandled during the move
- The customer has nine months after the move to file an initial claim against the mover.
- The mover is legally obligated to acknowledge any claim within 30 days and to resolve it or offer a settlement within 120 days.
- Items in boxes not packed by the mover are not covered, unless the outside of the carton provides clear evidence that the entire box was damaged during the move.
