Planning to relocate locally or long distance? Be prepared for questions from your moving company. One of the most important issues to consider is how your goods will be covered for damage while in transit. Movers offer what is termed Carrier Liability rather than insurance. Most local movers as well as interstate movers, those licensed to move household goods across state lines, offer two types of coverage. Basic carrier liability is the minimum amount of coverage carriers must provide by law and provides 60 cents per pound per article. Basic carrier liability is based on the weight of your items, not their value. If an item is damaged and weighs one pound, you will receive 60 cents for that item if it is lost or damaged. If an item weighs 10 pounds you get $6.00, one hundred pounds...$60.00 and so on. For a catastrophic loss, such as a fire or accident, you would receive 60 cents times the total weight of your shipment. There is no cost to this coverage. The other option is Full Replacement Coverage. A value is established for your goods, typically using a formula of $5.00 - $6.00 per pound. For example a 10,000 pound shipment valued at $6.00 per pound would be covered for $60,000. The important thing to note is that with Full Replacement Coverage, movers still reserve the right to repair items that are damaged yet reparable. If they are missing or cannot be repaired, goods will be replaced based on their market value today, without depreciation. There is a cost to Full Replacement Coverage but many carriers will offer discounted rates to corporate relocations, retiring employees, Seniors, etc. It's also important to check with your Insurance carrier to determine whether or not you have coverage with them while your goods are in transit.
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