Insurance
and Liability

Moving companies are required to assume liability for the value of the goods that they move. The level of liability can vary. You need to be aware of the amount of protection and the charges for each option. Insurance is often the area in moving that people know very little about. As a result of this it is often the area in which people make poor choices. Movers are required to provide you with information on what it will cost you to place a value on your shipment. You should be provided with a brochure “Here’s What You Need to Know About Placing a Value on Your Household Goods Shipment Before You Move” or this information may be included in “Your Rights and Responsibilities when you move” brochure. Be sure you actually read these brochures so you can accurately put a value on your shipment.

In the unlikely event you have loss or damage as a result of your move you have nine months to make a claim however you are still responsible for paying the remaining balance on the day of unloading. The mover is required to respond to your claim within 30 days and the issue must be resolved within 120 days. In the event that arbitration is chosen to resolve the issue and you are not satisfied with the outcome of the arbitration process you may sue for damages.

Basic Carrier Liability-Released Value

This is the often called limited liability and is the minimum coverage required by law. This insurance is covered in the base price and does not cost you any extra money. It is the most economical option available however your goods are covered to no more than 60 cents per pound per article. This is the level of coverage for an interstate move. This minimal amount of liability that must be provided to any consumer when transporting goods is called “released value”. Loss or damage claims are settled based on the pound weight of the article multiplied by 60 cents. If you have a 10 pound TV and it is destroyed in transit, you would be entitled to a total of $6.00 for the replacement of the TV. Obviously this will not replace the TV with this amount of money so think carefully before agreeing to it. If you agree to this option for insurance coverage you will be asked to sign a specific statement in agreement on the bill of lading.

Homeowners Insurance

Some homeowner’s insurance policies cover household goods while in transit. Check with your homeowner’s insurance company to find out what coverage you may have and be sure to check out when this ends. If the policy is void once you close on your old home it may be of little use to you as this is most likely when you will be moving. If you are fortunate enough to have coverage make sure you contact the insurance company and ask them to explain the level of coverage and what exactly is covered. In the event you need to file a claim with the insurance you will need to prove that the loss or breakage is due to mover’s negligence. No money will be paid out due to any items damaged due to poor packing by you.