Have You Insured Your Household Goods Before Moving?

Agreed that the benefits of hiring a moving company definitely outweigh the risks involved, but yet you cannot afford to ignore the possibility of a loss or damage. While it is the mover’s responsibility to ensure that your goods reach their destination safely, it is also your duty to protect your valuable items. Although, most of the moves are smooth and successful, there are also some situations where accidents and damages are inevitable during shipment.

Insurance and Liability

The moving company is liable to ensure that your goods and belongings reach their final destination in perfect shape; still there are different levels of liability. The level of liability depends on you and it greatly influences the amount and kind of reimbursement you are entitled to receive in case things go wrong. In order to protect the rights of the consumers, varied different liability options are available under the federal law. Moving companies are instructed to offer two liability alternatives or valuation coverage known as full value protection and released value.

Insurance Protection

Under the full value protection clause, your mover is responsible for and liable to pay the value for goods that are lost or damaged. Unless you choose the option of released value, the mover will automatically relocate your belongings under the comprehensive protection plan of full value protection. In case of loss, theft or damage, your mover is liable to either repair or replace the item in question. Movers are allowed to restrict their liability for loss or damage to extremely valuable items like jewelry and antiques, unless these are specifically listed on the shipping documents. Under this protection plan, the cost varies and depends upon the different deductible levels of liability.

Other Options

Released value, which is another option, is more affordable. This is because it is compulsory for the movers to offer this protection plan at no additional cost. Although, it is economical, the protection under this liability option is minimum. The moving company is liable only for sixty cents per pound on each item. You are required to sign on the bill of lading or a contract specifying that you agree to it. Under this, you are reimbursed as per the weight rather than the actual worth of the item. Unless, you do not specifically choose released value, your shipment will be automatically transported under the full value protection and consequently you will be charged.

If you opt for the released value protection plan, it is advisable that you apply for separate liability insurance. You need to purchase it separately since movers do not include it in the basic fees that they charge. This insurance is optional and governed by the state law.