When planning a local or long distance relocation it is important to know what type of liability has moving company over your goods. And what liability is included in the mover's quote at no additional charge and what you can get for extra protection of your goods and for how much.
Your mover is liable for the loss or damage to any household goods, except for a few of your actions that may limit or reduce your mover's liability under the following circumstances:
In California movers offer 3 levels of protection:
BASIC COVERAGE at 60 cents per pound per article ensures recovery at 60 cents multiplied by the weight of the item or the box it's packed in. Thus, if an items weighing 40 lbs is lost or damaged, you can recover $24.00 for this item (40 x $0.60). This is a very limited protection your goods are probably worth considerably more. This coverage is included in your mover's rates.
ACTUAL CASH VALUE protection ensures recovery at fair market value of your lost or damaged items, up to the total value you declare. Fair market value is the depreciated value of your goods and is determined by such factors as the cost of the item new, its age, its condition when received by the mover, and the value you declare. The mover may charge for this protection, and the rates will be stated on the bill of lading in the Valuation Section.
FULL VALUE protection ensures recovery at the replacement value of your articles that were lost or damaged, up to the total value you declare. This is the most expansive item since it covers replacement value of goods. The mover can opt to replace, reimburese or repair the damaged item, according to protection level you choose. The mover may offer deductibles in combination with full value protection. The mover may charge for full value protection, and the rates will be stated in the bill of lading in the Valuation Section.
Actual Cash Value: $1.20 per $100.00 of protection.
Example: for $25,000 of coverage your payment will be 25,000/100 x 1.20 = $300.00
No Deductible - $1.45 per $100.00 of protection.
$250 deductible - $1.30 per $100.00 of protection.
$500 deductible - $1.15 per $100.00 of protection.
Example: for $25,000 of Full Value coverage with $500.00 deductible your payment will be 25,000/100 x 1.15 = $287.50.
For $40,000 of Full Value coverage with $250 deductible your payment will be 40,000/100 x 1.30 = $520.00.
The valuation charge compensates the mover for assuming a greater degree of liability than it is provided in its base transportation charges.
You should ask your mover if you are not sure what articles may be considered hazardous and may not be transported with other household goods.
Moving insurance must be sold by insurance agents representing insurance companies doing business and registered with your state's department of insurance. Valuation coverage we talked about is not insurance. There are insurance companies that offer moving insurance protection. Before you start researching moving insurance companies call your agent that provides you with your homeowner's policy. Some homeowner policies offer relocation protection. If they don't your agent will be able to assist you with further research.