The regulations that govern interstate relocations establish three ways of protecting your goods financially against damage or loss during your move. The three forms of protection offer varying degrees of financial compensation. It’s important to understand their differences so you can make the best decision. The most basic level of protection, released value, is included for free with every licensed interstate move.
You’ll have to pay extra if you want increased protection above the basic level. First, ask your sales agent to explain the difference between replacement value and original purchase value. Moving companies use the replacement value of your items to determine your financial reimbursement in case of damage or loss. If you want access to the original purchase value of your items in case of loss or damage, you must buy insurance from either your moving company or a third party. The three forms of protection you can choose from to provide you with financial relief for damages or loss during your move are:
- Released value protection. Standard default coverage at no extra charge.
- Full-value protection. Increased protection that costs you extra.
- Third-party protection. Insurance that provides an enhanced level of protection.
Know that your mover can just pay you cash or credit for the cost of replacement or repairs rather than actually repairing your goods or buying you new items.
Released Value Protection: Partial Indemnification Against Loss or Damage
The most cost-effective method of protecting your goods is to accept the default protection offered by your moving company. For no extra charge, you are afforded by law coverage at 60 cents per pound for household goods transported over state lines that are damaged or lost. It’s the minimal protection available, and it requires you to agree in writing to decline the full-value protection that’s also offered.
Released value protection isn’t designed to cover the total replacement cost of a missing or damaged item. ”For example, if a 10-pound stereo component valued at $1,000 were lost or destroyed, the mover would be liable for no more than $6 (10 pounds X 60 cents),” according to Moving Rights and Responsibilities, a federal publication. “Obviously, you should think carefully before agreeing to such an arrangement.”
Full Value Protection: Increased Indemnification Against Loss or Damage
Your estimate will include a fee for full value protection. You’ll have to waive that fee if you only want released-value protection. Ask your mover about the minimal value of its full-value protection. The minimal value refers to the lowest amount per pound your mover can assign to any damage covered under a full-value arrangement. If the minimal value offered doesn’t cover the total value of your shipment, ask how much it costs to move to the next level of full-value protection.
You can gather each moving company’s full-protection minimum value level and compare them because they will differ. According to regulation, the moving company can choose between repairing or replacing your item when you opt for full-value protection. The specific way they determine the value of your financial protection is explained in each company’s tariff declaration. Once they accept your claim, it’s up to your mover to decide whether to:
- Replace your goods. Where your mover uses the current fair market price or similar “like and kind” analysis to calculate the replacement value of your items, or;
- Repair your goods. Where your mover uses the current fair market value of your possessions to determine the value of repairing your damaged or lost item.
As with all coverages, there are “limits of liability” associated with each type of reimbursement.
Third-Party Insurance: Insured Protection for Your Possessions in Transit
Neither the released value protection nor the full-value protection offered by your mover is actual insurance. It’s just another form of financial protection. If you want the comprehensive benefits insurance offers, such as purchase-cost coverage, ask your mover if they provide third-party insurance to cover your potential losses during a move. Your mover can offer you liability insurance provided by a third party, but they’re not required to do so.
Your mover can also offer you insurance the moving company provides that supersedes the federally mandated coverage available. Ask your mover for a written copy of your third-party or company-sponsored insurance deal. Read your insurance policy closely because the valuation and remuneration rules differ from federal regulations covering interstate moves. Remember, it’s private insurance, so the interstate moving valuation and liability rules established by the federal government don’t apply.
For Best Results, Follow the Rules and File Your Claim on Time
You have nine months from your delivery date to file a claim. If you aren’t satisfied with your mover’s response to a claim worth $10,000 or less, you can file for binding neutral arbitration administered by the program designated in your contract. The mover decides whether to employ arbitration or another settlement method if an agreement can’t be reached and the value of your claim exceeds $10,000.
Note that your contract for full-value protection or actual insurance says your protection covers only “furniture and boxes packed/unpacked by Carrier.” Released value protection doesn’t require you to obtain professional packing and unpacking. Any attempt to obfuscate the nature of your packed items can nullify your ability to obtain financial compensation related to your claim. To retain your full rights of financial reimbursement in case of loss or damage, you should:
- Understand and adhere to your mover’s Prohibited Items List
- Denote in writing your high-value items and comply with requirements
- Hire professional packers to box your high-value items
- Notate in writing any loss or damage from your move.
Your mover has a professional staff that’s dedicated to handling claims. To get the most from any claim you may have to make, follow the proper procedures at the outset when you create your item list.
