Good Movers | Moving Insurance/Valuation

moving insurance/ valuation

It’s important to understand what exactly you are getting when it comes to moving insurance and valuation. Movers are always liable for the goods that they transport. However, the different types of valuation can differ drastically. 

Moving Insurance and Valuation

Good Movers is liable for the goods that you ask them to transport. However, there are two different kinds of liability: Full Value Protection and Released Value.

Under Full Value protection, Good Movers is liable for the replacement value of lost or damaged goods in your entire shipment. If any article is lost, destroyed, or damaged while in Good Mover’s custody, Good Movers will, at our discretion, offer to do one of the following:

  • Repair the item

  • Replace the item with a similar item

  • Make a cash settlement for the cost of the repair or the current market replacement value 

Under this option, Good Movers limits our liability for loss or damage to articles of extraordinary value, unless you specifically list these articles on the shipping documents (Bill of Lading). An article of extraordinary value is any item whose value exceeds $100 per pound (such as jewelry, silverware, china, furs, antiques). The federal minimum level of coverage is $6.00 times the estimated weight of the shipment with $5000 of minimum coverage regardless of weight. In addition, the maximum level of coverage is $60,000 per loaded truck. 

There are two options for Full Value Protection, (1) $0 deductible and (2) $500 deductible. For option (1), the charge is 1.5% of the valuation and for option (2) the charge is 0.5% of the valuation. A simpler way to think about it may be, under option (1) the rate is $15.00 per $1000 in valuation and under option (2) the rate is $5.00 per $1000 in valuation. For example, if the estimated weight of your move is 3500 pounds, the minimum level of valuation would be 3500 pounds times $6.00 equals $21,000. Therefore, the charge for option (1) would be $315.00 ($21.00 X $15.00) and the charge for option (2) would be $105.00 ($21.00 X $5.00).

The most economical protection available is Released Value since it is offered at no additional charge. However, the protection is minimal. Under this option, Good Movers assumes liability for no more than 60 cents per pound per article. For example, if Good Movers lost or damaged a 10-pound stereo component valued at $1,000, you would only receive $6.00 in compensation (60 cents x 10 pounds).

There is no additional charge for Released Value. However, you must sign a specific statement on the bill of lading or contract agreeing to it. But remember, it compensates you according to the weight of the item, not its actual value. And, if you do not select Released Value, your shipment will automatically be transported at the Full Value Protection level of liability and you will be assessed the applicable charge.

Full Value Protection and Released Value are not insurance policies governed by state insurance laws; instead, they are Federal contractual tariff levels of liability authorized under Released Rates Orders of the Surface Transportation Board of the U.S. Department of Transportation.

*This content and policies come from guidelines set forth by the Federal Motor Carrier Safety Administration (FMCSA). For more information, see: https://www.fmcsa.dot.gov/protect-your-move/valuation-insurance

You should also check out the following document prepared by the FMCSA to make sure you’re hiring a legal moving company: Your Rights and Responsibilities when You Move