Understanding Moving Insurance and Liability
By Relocation.com Staff
Insurance to move? Just like auto insurance or a homeowner insurance policy, moving insurance is crucial form of protection against any damage to your personal belongings. While many people simply pass on this option believing that nothing will ever happen to their belongings, here at USInsurance.com we know that anything and everything can occur during moving day, even the unfortunate mishap (accidental damage, lost items, misplaced-you name it). And more times than not, the same end results are heard across the board: insurance was not purchased. This simple piece of paperwork can protect your belongings-covering the full amount or partial value of your items that may just be the peace of mind you need come moving day.
Basic Carrier Liability
Basic Carrier Liability is the minimal amount of liability that must be provided to any consumer when transporting goods at no extra charge. Also called the "released value," this insurance policy is limited to 60 cents per pound per article. If you are moving locally, you can consult with the mover in your state on what is the minimal liability for that state. When moving out of state, the minimal liability is assumed to be not greater than 60 cents per pound per article. Under this coverage, if a 10-pound item valued at $1,000 was lost or damaged and you agreed to a released value of shipment, the mover would be liable for no more than $6.00.
Declared Value Protection
This coverage is based on the depreciated value of an item, regardless of current replacement cost. The whole shipment is covered at a value not to exceed the dollar amount that the customer declares and is subject to an additional charge of $1.25 times the weight of your shipment.
With this option, the mover assumes liability for the entire shipment at an amount equal to $1.25 per pound times the weight of your items. For example, if your item weighs 8,000 pounds, the mover will be liable for loss or damage up to $10,000. Though you have made no specific arrangements for this plan, the mover is entitled to charge you $7.00 for each $1,000 of liability. A charge of $70 will be added to your bill for additional liability. Under this arrangement, a 10-pound item valued at $1,000 in your allotted 8,000 pounds could collect the full value if an item that was lost or damaged. Your valuables are somewhat protected, under this plan, but you do pay a sizeable amount for this coverage.
Full Replacement Liability
If your shipment exceeds the liability of $1.25 per pound times the weight of your shipment, you may want to purchase a full replacement liability. This coverage equals the replacement cost or the repair of a damaged item. The mover can sell you or procure for your liability insurance in the amount you require, if you release your shipment for transportation at a value of 60 cents per pound per article. If any damages or lose to your shipment occurred during your move, the mover would be liable for an amount not exceeding 60 cents per pound per article, and the balance of the loss would be recoverable from the insurance company up to the amount of insurance purchased.
Full replacement value coverage is subject to a minimum charge of either $3.50 or $4.00 times the weight of your shipment. You should decide if the minimum coverage is enough to cover your load in case of loss or damages. This coverage may have a deductible. Remember that coverage with deductible reduces the premium; where you will also be responsible for the first $100, $250 or $500 of loss or repairs.
Extra Ordinary Value Items
Movers are permitted to limit their liability for loss or damage to articles of extraordinary value. All items in your moving boxes which are considered to be of extraordinary value must be identified. You must advise your moving agent in writing that they are in your shipment. These items are defined as items having a value greater than $100 per pound per article
It is your responsibility to understand this coverage by obtaining a complete explanation of this limitation before your move. Your mover will provide you with the explanation regarding this liability. However, we do suggest that these valuables should remain in your possession during the move. The mover's representative can advise you further on the availability of such insurance liability and the cost.
For example:
- Antiques / Crystal / Precious Stones or Gems
- Art Collections / Currency / Silver and Silverware
- Cameras / Figurines / Video Cameras
- Computer Software / Furs
- Coin Collection / Oriental Rugs
If you include items of extraordinary value with your shipment, a High Value Inventory sheet must be completed and signed by you prior to your move. In the event of a claim, any settlement is limited to the valuation you declare for the entire shipment. If you fail to list all extraordinary items value and/or fail to sign the High Value Inventory sheet, the liability for loss or damage to those items will be limited to no more than $100 per pound per article, based upon the actual weight of the article (does not apply to shipments under the "basic carrier liability" option).
You must declare the total amount of released value that you declare for your goods. This total should include the value of items, including all items of extraordinary value. Record the total value on the bill of lading. Please note that the protection for items of extraordinary value is not available for shipments, which are released to the moving companies' value of 60 cents per pound per article (basic carrier liability option).
Movers insurance isn't all black and white; one policy that may be right for you, may not work for someone else who is moving and vise versa. Although there are numerous rules, there is a policy out there for every one and we hope you'll now think twice about insuring your belongings come moving day.
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