Driver's Information Sheet on "Cargo Protection Coverage"
What is Valuation?
Valuation is the total amount of coverage that the customer purchases. When it is said that the customer purchased $50,000 Valuation, it means the customer purchased a total cargo protection coverage up to $50,000.
It is the protection that a customer buys, against loss of dollar value, due to damaged or missing items in a shipment. Even though we commonly call it insurance, it is not insurance. When a person buys insurance, they are protected against loss of value regardless of who is at fault. Valuation Protection only protects the customer from a loss of value, which the mover causes. To be correct, we should not talk of Valuation Protection Coverage as insurance.
What if the customer does not want to buy Valuation Protection?
A customer is covered, by law, up to $0.60 per pound per article. Example, A $400.00 dining room chair is totally destroyed by the mover. The chair weighed 40 pounds. The mover's total legal liability for that chair, if the customer did not buy Cargo Protection Coverage, is $24.00 ( 40 LBS times $0.60), regardless of the value of the chair.
Types of Valuation Coverage
Maximum Value Protection (MVP) is a protection plan that give you peace of mind. It's the move complete and competitive coverage offered, giving you full replacement protection on any item that is damaged beyond repair during the move. That means North American covers the cost to replace or repair the item, whichever is less, up to the full value of the item and deductible. The weight of your household goods times $5.00 will give you a good idea on the ideal value of your household goods. There are set amounts that can be bought as well as you can have deductible on your coverage to lower the cost of the valuation. These are options a sales person can review with your at the time of your Free in home estimate.
Basic Liability Protection has no charge. It provided repair or replacement up to a maximum of .60 cent per pound per article should your goods get damaged or lost. But when it comes to protection your belongings, one size does note fit all - the level of protection you need may be greater than the minimum coverage.
If something is damaged, how does a customer get compensated?
A Claim Form must be submitted by the customer for repair or monetary compensation.
If MVP coverage is purchased, an inspector/repairman will be assigned to make repairs or recommend a dollar amount for cash settlement.
What is compensation to the customer for damage based on?
Compensation to the customer is based on the value of the item, up to the limit of the Valuation Coverage that the customer purchased or the cost of the repair whichever is less. Example, an entertainment cabinet value is $650. There is a scratch is the cabinet. The repair is estimated to cost $100. The customer bought Maximum Value Protection. The customer does not want it repaired but wants a new cabinet. The mover will offer $100 cash to the customer, or repair the cabinet.
Electronics with physical damage that need to be replaced will be replaced at the current market value. Like most movers, electronics and mechanical items that simply do not work after a relocation will not be covered.
