Tuesday, February 26, 2008
All moving companies are required to cover the goods that they transport. They also must assume liability for any loss and/or damage to your goods. However, whether you are moving within the State of North Carolina or are moving within the Continental United States there are different options of liability; and you should be aware of the amount of protection available and the charge for each option. All shipments of household goods must have the "valuation" determined prior to the move. An addendum to the Bill of Lading provides details on the valuation of your household goods and allows you to clearly select the protection and liability levels you desire. Settlement of any claims for loss or damage is based upon the level of protection you select.
If you are moving within the State of North Carolina there are 3 options available for you. These options are covered below and in much more detail in the "Moving in North Carolina "Your Rights and Responsiblities" pamphlet". Remember valuation is NOT insurance; it is a defined level of carrier liablity. You are not purchasing, and the mover is not selling you, an insurance policy on your household goods. The options that are available for you are governed by the State of North Carolina. Also, all valuations are rounded up to the next $100.
If you are moving within the Continental United States there are 2 options of liability coverage movers are required to offer and they are explained below and in the brochure labeled Interstate Moving "Your Rights & Responsiblities". You are not purchasing, and the mover is not selling you, an insurance policy on your household goods. All the liabilities offered are contractual tariff levels of liability authorized under Released Rates Orders of the Surface Transportation Board of the US Department of Transportation. Some interstate companies will provide you a third party company to provide insurance instead of using their policy (i.e. Moving Insurance.Com). Keep in mind that any third party carrier is not governed by Federal Law instead it is optional insurance that is regulated under state law. If you purchase this seperate 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 $0.60 (sixty cents) per pound per article, and the balance of the loss is receovered from the insurance company up to the amount of insurance purchased. Make sure you get a copy of the policy or other documentation at the time of purchase.
Be sure to read this information carefully before declaring a value on your shipment.
Option #1 Basic Valuation Protection: This is the most economical protection plan available. There is no charge for this valuation. The mover's maximum liability shall be $0.60 (sixty cents) per pound per article based upon the actual weight of any lost or damaged article or articles. For example, if a television that weighs 100 lbs. and is valued at $1500.00 is lost or damaged; the movers maximum liability will be 100 lbs. x $0.60 which would result in a check to you in the amount of $60.00 for you to repair or replace the refrigerator. For Interstate moving this will also be called Released Value.
Option #2 Full (Replacement) Value Protection: This is the most comprehensive plan available for the protection of your goods. The mover's maximum liability for this option shall be the greater of $4.00 time the actual weight of the shipment or the declared lump sum value of the shipment. (The declared value must be at least $4.00 per lb. time the weight of the shipment). Under this option, often referred to as "Full Value Protection" or "Full Replacement Value", if any article or articles are lost or destroyed the mover will have the option of replacing them with articles of like kind and quality or paying you for the cost of replacement (as determined by current market value without deduction for depreciation and regardless of age). If any goods are damaged, the mover will have the same options as stated above, plus the additional options of repairing them to the extent necessary to restore them to the same condition as when received by the mover from you, or paying you the cost of the repair. Keep in mind any item that a mover pays to replace becomes the property of the mover.
For Interstate moves, 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 details of their specific plan.
Option #3 Depreciated Value Protection: This level of valuation considers depreciation in
determining the amount of liability. The mover’s maximum liability is either $1.25 times the actual weight of the shipment or a lump sum value declared by you, less depreciation. In other words, you can declare that the shipment is more valuable than $1.25 times the weight of the shipment. For example, a 5,000 lb. shipment would be valued at $6300. You can declare the shipment to be valued at any amount greater than that if you want to do so. The mover has the option of paying you the value (less depreciation) of any lost or damaged goods, repairing any goods to the extent necessary to restore them to same condition as received by the mover from you, or paying you for the cost of the repair. (For example, damage to an end table valued at
$200 and 7 years old, would depreciate 7% each year resulting in a depreciation of $98. You would receive a check for $102 instead of $200.) You may ask your mover for the source of its depreciation rates. Many movers use the depreciation guide supplied by the American Moving and Storage Association. This option is not available for Interstate moves.
Under all the above options, movers are permitted to limit their liability for loss or damage to articles of extraordinary value, unless you specifically declare and list these articles on a seperate inventory. An article of extraordinary value is any item whose value exceeds $100.00 per pound (for example, jewelry, silverware, china, furs, antiques, oriental rugs, computers and or computer software ect.). If you fail to declare these items a mover's maximum liability will be limited to $100.00 per pound per article (so your 2 oz. diamond ring will only be covered for $12.50!!)
I recommend that you transport certain items yourself like jewelry, any legal or medical documentation, credit cards, coin collections and any other such special items.
I know this is a lot to take in but knowing the above information in detail will allow you to decide what is best for your goods and for your wallet. Make sure the mover you are using is a certified mover and that they have all the licenses needed to perform the work. Remember, you can never ask too many questions. Besides, you want to feel comfortable and secure with the movers you have chosen.
