Insurance & Liability

moving tips: insurance

Released Value

This is the most economical protection option available. This no additional-cost option provides minimal proectin. Under this option, the mover assumes liability for no more than 60 cents per pound ($1.32 per kg),per artcle. Loss or damage claims are settled based on the pound weight of the article multiplied by 60 cents (or the kilogram weight X by $1.32). For example if you have a 10 pound (4.54 kg) stereo. component, valued at $1000. was lost or destroyed, the mover would be liable for no more than $6.00. The shipper should think carefully before agreeing to such an arrangement. There is no extra charge for this minimal protection.

Declared Value

Under this option, the valuation of your shipment is based on te total weight of the shipment times $1.25 per pound ($2.75 kg). For example a 4,000 pound shipment (1814.4 kilogram) would have a maximumliability value of $5,000. Any loss or damage claim under this option is settled based on the depreciated value of the lost or damaged item(s) up to the maximum liability value based on the weight of the entire shipment. Under this option,if you shipped a 10 pound (4.54 kg) stereo component that originally costed $1000. th mover would be liable for up o $1000, based on the depreciated value of the item.

The mover is also entitled to charge $7.00 for each $1000. of liability assumed for shipments moved under this option. Your shipment is then based on depreciated value for example a Shipment valued at $5000 may have a fee of $34. for this extra protection.

Lump Sum Value

This coverage is somewhat similiar to Declared Value. For additional liability protection, you may declare a specific dollar value for your shipment. The amount you declare must exceed $1.25 per pound times the weight of the shipment.The amount of value that you declare is subject to the same valuation charge ($7.00 per $1000.). For example, if you declare that your 4,000 lb shipment is worth $10,000 (instead of $5000 like declared value), the mover will charge $7.00 for each $1000 of declared value, or $70.00, for this increased level of liability. You must declare this in writing on the bill of lading.

Full Value Protection

Most movers also offer a fourth level of added-value protection referred to as “full value protection or “full replacement value”. If you choose to purchase full value protection, articles that are lost or destroyed are either repaired, replaced with like items, or cash settlement will be made for the current market value reguardless of the age of the lost or destoyed item. The cost for full value protection varies by mover and may be subject to various deductibles that may reduce the cost. The valuation charge that you will be asked to pay is based on the amount of valuation that you declare on your shipment. Get a complete explanation from your mover about limitation and availability of such liabilities before you move. It is your responsibility to study this provision carefully and make the necessary declaration.

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