5 Things to Know About Liability Coverage When You Move«« Move For Hunger Resources September 28, 2016 | 10:41 am |
In the midst of planning for a move, many people tend to overlook one important aspect of the relocation process: liability coverage. Replacement protection during a move is a complicated concept, but it can be easily understood if you are aware of a few certain points. Keep these things in mind when making your selection.
It is not insurance.
Full replacement value protection, or FRVP, is a blanket term for liability coverage. In the event your shipment is damaged or lost, the moving company handling your shipment will arrange to repair your goods, replace the item(s), or make a settlement offer for the valuation of the goods lost or damaged during shipping.
The coverage options change depending on where you live and how far you are moving.
Moving services are regulated depending on the distance of your relocation. If you are moving across state lines, your move is governed by the Interstate Commerce Commission. Local and intrastate moves have different restrictions. Check your state’s department of transportation website or the Federal Motor Carrier Safety Administration site to determine how your shipment should be rated for valuation.
You don’t have to choose your coverage choice until the day of the move.
Although selecting coverage before the day of your move may expedite the process, you don’t have to decide until it comes time to sign the bill of lading. The bill of lading is required for a crew to remove your goods from your home and deliver them to the destination. If you are not sure what coverage to select, do some research before moving day to see how much liability protection you’ll need.
You are not obligated to buy the additional coverage.
By law, professional moving companies are required to provide a minimum amount of coverage in the event of damaged or lost items. For interstate moves, your household goods are automatically protected for 60 cents per pound, per article. Local and intrastate moves have a different minimum, depending on state law. You do not have to purchase the additional coverage, but if you do not, see #5.
If you opt for the minimum coverage, you’re taking a risk.
When you select the standard coverage, your household items are protected for a very small amount. If you have a flat screen television that weighs 10 pounds and it gets broken, the standard liability coverage will pay $6.00 towards the cost repair or replace it. 60 cents per pound per article x 10 lbs. = $6.00. So if your TV cost $1,000, suddenly that minimum coverage seems like a bad idea. It may appear to be an exorbitant cost when tacked onto a move, but if you find yourself with damage, the price could be much higher.