Am I protected against loss or damage while my goods are in transit?
Yes, but how much protection you have and its cost to you depend upon the valuation coverage you selected. This can be one of the most confusing aspects to moving but it is important that you understand what is being provided to you.
The valuation option you choose determines the basis upon which any claim will be adjusted and the maximum liability of the carrier. The liability of a carrier for loss or damage is based upon the carrier’s tariffs, as well as federal laws and regulations that have certain limitations and exclusions. Valuation is not insurance. This is important to understand. It is the liability of the moving company. Check with the provider of your homeowners insurance to find out of you are covered for moving. Often times you will find that you are.
This is the most economical as it is no cost to you. This option provides only minimal protection and is not sufficient coverage for almost all shipments. It will pay you $.60 per pound per article if lost or damaged. That means a piece of furniture weighing 75 lbs would receive a settlement of $45.00. You will asked to initial the bill of lading if you select this coverage. The only place this is applicable is if your insurance policy covers your goods for their entire value and this would be considered supplemental coverage for you.
Full Extra Care Protection
This is your most comprehensive coverage. You may hear it referred to as “full replacement value” as well as “full value protection”. If you elect to purchase full value protection, articles that are lost, damaged or destroyed will be either repaired, replaced with like items or a cash settlement will be made 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 cost of full value protection 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.