In this article we will tell you about the moving insurance and liabilities. In general, your mover is legally liable for loss or damage that occurs during the transportation of your shipment.
What exactly is moving insurance?
Before describing to you in detail the types of insurance that are offered by moving companies, we would like to point out that the moving insurance is not the insurance. Instead, the moving companies offer what is called a valuation. Valuation functions such as insurance: moving company guarantees compensation for your belongings in case of damage or loss at the certain level of liability, which in the most cases is based on the weight of the shipment.
Moving companies are not certified to sell insurance and are not subject to federal regulations that apply to other types of insurance. Ultimately, for your peace of mind, valuation works just like insurance, but you will need to understand which level of liability your mover offers: either full value protection, capped at certain amount but not less than $10k per shipment and not less than $6,00 per pound or Released value protection, based on $0,60 per pound per article and usually capped at $10k per shipment. Normally released value protection plan is capped at the cost of your contract with mover.
Released Value Protection
Released Value is minimal protection and it is the most economical protection available as there is no charge to you, since the moving company is obligated by Federal Law to carry this level of liability and offer it to its customers for free. The moving company typically assumes liability at only 60 cents per pound per article. This means that if your vintage 300 pounds china cabinet was damaged or lost during your move, the mover would only have to pay out $180 in compensation.
When covered by released valuation protection you won’t get back lost or damaged items, you’ll be compensated 60 cents per pound per item only.
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Full Value Protection
The second option for protecting your belongings is Full Value Protection. Full Value Protection is the most comprehensive option available to protect your household goods, but it will increase the cost of your move.
Customers declare what goods are worth, per pound in average, and then pay a premium for that amount of coverage. Most moving companies have their Full Value Protection policy, and most will have some sort of minimum value you have to claim on your goods. By the way, some States have regulations about the minimum level of coverage is, typically anywhere between $4 or $6 per pound on your household items. This means if you are moving 5,000 pounds and you declare the minimum value on your goods is $5 per pound, your household goods will be valued in total at $25,000. This is the maximum amount you’ll receive if all your belongings will be damaged or lost.
When you file a claim under full value protection or even released value, your moving company has the next options for fulfilling a claim:
- Repair the article to the extent necessary to restore it to the same condition as when it was received by your mover, or pay you for the cost of such repairs.
- Replace the article with an article of like, kind and quality, or pay you for the cost of such a replacement.
- Offer cash settlement for the damages or lost
Under Full value protection, moving companies have the right to limit their liability for high-value items. These items are referred to as items of extraordinary value. As usual, a high-value item is anything that is worth $100+ per pound. Before your moving day, you have to make sure you’re on the same page with your moving company in regards to whether these items are covered. You can purchase additional coverage for these high-value items.
Third Party Insurance
You have also a third option is to purchase separate third-party cargo liability insurance from, or through your mover. In this case the mover is required to issue a policy or other written record of the purchase and to provide you with a copy of the policy or other document at the time of purchase. If something of shipment transported under a mover’s bill of lading will be lost or damaged, customer can turn to arbitration. Third party insurance companies are subject to the regulations of the States in which they are licensed.
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If you still have some uncertainness please call Easy Florida Moving for further explanations.
Easy Florida Moving is licensed and insured moving company, and our professional movers can handle all of your moving needs. Your Best Moving Experience starts here! Call Easy Florida Moving Today 1(786)338-1008 to get a Free Moving Quote.
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