All interstate moving companies are required to assume liability
for the value of the goods which they transport. However,
there are different levels of liability and consumers should
be aware of the amount of protection provided and the charges
for each option. Basically, most movers offer four different
levels of liability under the terms of their tariffs and
pursuant to federally approved Release Rates Orders which
govern the moving industry. These four levels (options) are
described below.
Option 1: Released Value
This is the most economical protection option available.
This no-additional-cost option provides minimal protection.
Under this option, the mover assumes liability for no more
than 60 cents per pound, per article. Loss or damage claims
are settled based on the pound weight of the article multiplied
by 60 cents. For example, is a 10 pound stereo component,
valued at $1000 were lost or destroyed, the mover would be
liable for no more than $6.00. Obviously, you should think
carefully before agreeing to such an arrangement. There is
no extra charge for this minimal protection, but you must
sign a specific statement on the bill of lading agreeing
to it.
Option 2: Declared Value
Under this option, the valuation of your shipment is based
on the total weight of the shipment times $1.25 per pound.
For example, a 4000 pound shipment would have a maximum liability
value of $5000.00. Any loss or damage claim under this option
is settled based upon 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 stereo component that originally cost
$1000, the mover would be liable for up to $1000, based on
the depreciated value of the item. Unless you specifically
agree to other arrangements, the mover is required to assume
liability for the entire shipment based on this option. Also,
the mover is entitled to charge you $7.00 for each $1000
(or fraction thereof) of liability assumed for shipments
transported under this option. In the example above, the
valuation charge for a shipment valued at $5000 would be
$35.00.
Option 3: Lump Sum Value
Under this option, which is similar to Option 2, if the
value of your shipment exceeds $1.25 per pound times the
weight of the shipment, you may obtain additional liability
coverage from the mover. You do this by declaring 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) as described in Option
2. For example if you declare that your 4000 pound shipment
is worth $10,000 (instead of the $5000 under Option 2), the
mover will charge you $7.00 for each $1000 of declared value,
or $70.00, for this increased level of liability. If you
ship articles that are unusually expensive, you may wish
to declare this extra value. You must make this declaration
in writing on the bill of lading.
Option 4: Full Value Protection
Many interstate movers offer a fourth level of added-value
protection, often referred to as "full value protection" or "full
replacement value". If you elect to purchase full value
protection, articles that are lost, damaged or destroyed
will be either repaired, replaced with like items or a cash
settlement will be made for the current market replacement
value, regardless of the age of the lost or damaged item.
Unlike the other options, depreciation of the lost or damaged
item is not a factor in determining replacement value when
the shipment is moved under full value protection. The exact
cost for full value protection may vary by mover and may
be further subject to various deductible levels of liability
which may reduce your cost. Ask your mover for the specific
details of its plan.
Under these four options, movers are permitted to limit
their liability for loss or damage to articles of extraordinary
value, unless you specifically list these articles on the
shipping documents. An article of extraordinary value is
any item whose value exceeds $100 per pound. Ask your mover
for a complete explanation of this limitation before your
move. It is your responsibility to study this provision carefully
and to make the necessary declaration.
These optional levels of liability are not insurance agreements
which are governed by state insurance laws, but instead are
authorized Released Rates Orders of the Surface Transportation
Board of the U.S. Department of Transportation.
In addition to the above options, your mover can also sell
you, or procure for you, seperate liability insurance if
you release your shipment for transportation at a value of
60 cents per pound per article (Option 1). Then, in the event
of loss or damage which is the responsibility of the mover,
the mover is liable only for an amount not exceeding 60 cents
per pound per article and the balance of the loss is recoverable
from the insurance company (up to the amount of the insurance
purchased). The mover's representative can advise you of
the availability of such liability insurance and the cost.
If you purchase liability insurance from or through your
mover, the mover is required to issue a policy or other written
record of the purchase and to provide you with a copy of
the policy or other document at the time of purchase. If
the mover fails to comply with this requirement, the mover
becomes fully liable for any claim for loss or damage attributed
to its negligence.
|
