Liability and Protection When You Move

Working with a household goods carrier (mover) can be nerve-racking. You are packing up all your treasured possessions—furniture, family pictures, heirlooms, antiques, children's toys—and handing them over to strangers to load into a truck. While most moves go smoothly, accidents do happen, and some items may be lost or damaged during shipment.

Your mover is responsible for the value of the goods you asked them to transport. You can read about the two types of liability below or in the Your Rights and Responsibilities When You Move booklet movers are required by Federal regulations to provide when you move from one state to another.

What are your options?

Under Federal law, interstate movers must offer two different liability options, referred to as valuation coverage: full value protection and released value.

Full Value Protection

Under full value protection, your mover is responsible for the replacement value of lost or damaged goods in your entire shipment. This is the more comprehensive, but also more expensive, option for protecting your belongings. Unless you choose the released value option (described below), your mover will automatically move your belongings under this level of liability.

While moving, if any of your items are lost, destroyed, or damaged, your mover will offer to do one of the following for each item:

• Repair the item.
• Replace it with a similar item.
• Make a cash settlement for the cost of the repair or the current market replacement value.

Under this option, movers are allowed to limit their legal responsibility to loss or damage to items of "extraordinary value," meaning items that are valued more than $100 per pound (such as jewelry, china, or furs). However, if you specifically list these items on the shipping documents, your mover is still responsible for their safe delivery. Ask your mover for a written explanation of this limitation before your move.

The exact cost for full value protection varies by mover and may be subject to various deductible levels of liability that can reduce your cost. Ask your mover for written details of their full value protection plan.

Released Value Protection

Released value protection is the most economical option because it doesn't cost anything. It is offered by movers at no additional charge, but the protection is minimal. Under this option, the mover is responsible for no more than 60 cents per pound per article. For example, if your mover lost or damaged a 50-inch TV weighing 25 pounds, you would only receive $15 (60 cents x 25 pounds).

If you choose this option, you must sign a specific statement on the bill of lading or contract agreeing to it. Just remember that you will only be compensated according to the weight of the item, not its actual value. If you do not select released value protection, your shipment will automatically be transported at the full value protection.

Third Party Insurance

If you select released value, some movers may also offer to sell you separate liability insurance. The cost of this insurance is not included in the basic move and must be purchased separately by you. This is not valuation coverage governed by Federal law—it is optional insurance regulated by state law.

If you purchase this coverage, the mover remains responsible for the amount up to 60 cents per pound per article; however, the insurance company will pay you for the rest of the loss, up to the amount of insurance you purchased. Your mover is required to issue the policy or other written record of the purchase and provide you with a copy at the time of purchase.

You also have the option of purchasing insurance from a third-party insurance company yourself. Before purchasing insurance, check your homeowner's insurance policy to see if you're already covered.

If you're moving within your state...

Each state may have its own rules and regulations governing moves within the state. Check with your state, county, or local consumer affairs agency (Link opens in a new windowhttps://www.usa.gov/state-consumer) or state moving association (Link opens in a new windowhttps://www.fmcsa.dot.gov/protect-your-move/state-movers-associations) if you're moving to a new location within the same state.

Keep in mind...

Some of your actions may limit your mover's liability. These include

• Packing perishable, dangerous, or hazardous materials in your household goods without your mover's knowledge
• Packing your own boxes (You may consider packing your own household goods articles to reduce your costs, but if the articles you pack are damaged, it may be more difficult to establish your claim against the mover for the boxes you pack.)
• Choosing released value coverage when your household goods are valued at more than 60 cents per pound per article
• Failing to notify your mover in writing about articles of extraordinary value
• Signing a delivery receipt for your household goods if it contains any language about releasing or discharging your mover or its agents from liability (Strike out this kind of language.)
• Failing to report loss and damage promptly (You have nine months following the date of delivery of your shipment to file a written claim with your mover.)

Interstate movers are required to participate in a dispute resolution or arbitration program to address your loss and damage claims. If your mover does not provide you with information on its program, ask for it—movers are required to provide a concise, easy-to-read summary.