All moving companies are required to assume liability for the
value of the goods that they transport. However, there are different
levels of liability, and you should be aware of the amount of protection
provided and the charges for each option. The two different levels of liability
that movers are required to offer are explained below:
OPTION 1: FULL (REPLACEMENT) VALUE PROTECTION. This is the
most comprehensive plan available for the protection of your goods. Under this
option, often referred to as "full value protection" or "full
replacement value", articles that are lost, damaged or destroyed will be
(at the mover's option) either repaired, replaced with like items, or a cash
settlement will be made for the cost of the repair, or for the current market
replacement value, regardless of the age of the lost or damaged item.
Depreciation of the lost or damaged item is not a factor in determining
replacement value when the shipment is moved under full value protection.
The exact cost for full value protection may vary by mover and may be further
subject to various deductible levels of liability that may reduce your cost.
Ask your mover for the details of their specific plan.
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 (for example, jewelry, silverware,
china, furs, antiques, oriental rugs and computer software). Ask your mover for
a complete explanation of this limitation before your move. It is your
responsibility to study this provision carefully and to make the necessary
declaration.
OR, OPTION 2: RELEASED VALUE. This is the most economical
protection option available, however, this no-additional-cost option provides
only minimal protection. Under this option, the mover assumes liability for no
more than 30 cents per pound, per article. Loss or damage claims are settled
based on the pound weight of the article multiplied by 30 cents. For example,
if a 10-pound stereo component, valued at $1000 were lost or destroyed, the
mover would be liable for no more than $3.00 (10 pounds x 30¢). Obviously, you
should think carefully before agreeing to such an arrangement. There is no
extra charge for this minimal protection, but you must sign a specific
statement on the bill of lading agreeing to it.
· Movers are required to provide you
with information explaining what you must do and what it will cost to place a
value on your shipment. You should either receive a separate brochure entitled
"Here's what you need to know about Placing a Value on Your Household
Goods Shipment Before You Move" or this same information may be
included in the Your Rights and Responsibilities When You Move
brochure. Either, way, be sure to read this information carefully and follow
the instructions provided to declare a value on your shipment.
These two
optional levels of liability are not insurance agreements that are governed by
state insurance laws, but instead are tariff levels of liability authorized
under Released Rates Orders of the Surface Transportation Board of the US
Department of Transportation.
In addition to these options, some movers may also offer to sell, or procure
for you, separate added liability insurance if you release your shipment for
transportation at a value of 30 cents per pound per article (Option 2). This is
not valuation coverage governed by Federal law, but optional insurance that is
regulated under state law. If you purchase this separate coverage, in the event
of loss or damage which is the responsibility of the mover, the mover is liable
only for an amount not exceeding 30 cents per pound per article, and the
balance of the loss is recoverable from the insurance company up to the amount
of insurance purchased. The mover's representative can advise you of the
availability of such liability insurance and the cost. If you purchase this separate
liability insurance from or through your mover, be sure to get a copy of the
policy or other document at the time of purchase.