Guide to Moving Insurance
Moving Insurance for 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.
We train our staff thoroughly to ensure that your belongings are packed correctly, transported safely and unloaded professionally. However, sometimes an Item might get damaged. That’s why we offer valuation protection, a program that resolves the situation quickly, keeping you happy throughout the course of your move.
Free Basic Liability Protection
Basic Liability Protection Is free. It provides repair or replacement up to a maximum of $.60 per pound per article In case of damage or loss. For example, if you bought an antique armoire for $1,600, and It weighs 150 pounds. Under Free Basic Liability Protection, If the armoire is damaged beyond repair, you would receive 60 cents per pound per article, or $90.00.
Need a higher level of protection than our basic liability coverage?
Extra Ordinary Value Items
All Items In your shipment, which are considered to be of extraordinary value, must be Identified. You must advise your van line agent in writing that they are in your shipment. These items are defined as items having a value greater than $100.00 per pound per article.
- Precious Stones or Gems
- Art Collections
- Sliver and Silverware
- Video Cameras
- Computer Software
- Coin Collection
- Oriental Rugs
If you include items of extraordinary value In your shipment, a High Value Inventory sheet must be completed and signed by you prior to your move. In the event of a claim, any settlement Is limited to the valuation you declare for the entire shipment.
If you fail to list aII extraordinary value items and/or fa ii to sign the H lgh Value Inventory sheet, the van line Ila billty for loss of or damage to those items will be limited to no more than $100.00 per pound per article, based upon the actual weight of the article (does not apply to shipments under the “basic carrier liability” option).
*See the terms and conditions specified on the North American Protection Plans Worksheet and North American’s published tariffs.
Complete replacement of multiple-Item sets of china, gold and silver flatware, and crystal glassware are excluded from pairs and sets protection under the MVP Plan.
- Limited/Basic Liability
- Replacement Cost Protection
Both options are explained in detail below.
The first 90 days of the shipment In storage are considered Storage In Transit (S.1.T) and any valuation plan that was purchased during the pickup will cover the shipment during this time. After 90 days the default coverage Is $0.60 per lb. per article unless an additional coverage was purchased.
Clients transferred under a corporate relocation agreement with Pa I mer may have their S. I.T. period extended to 180 days. This varies by contract -check with your Palmer Representative for details.
Our valuation options for storage are as follows:
- Limited/Basic Liability-As a licensed common carrier, we are required to provide limited liability coverage at no charge to the customer. Under this option maximum liability Is limited to $.60 per pound per article, in the event of damage or loss.
- Replacement Cost Protection (RCP): This covers your belongings at their full replacement value. Declared value must be a minimum of $4.00 times the actual weight of the shipment. The cost of this coverage is $4.00 per $1,000.00 valuation per month.
A note: Coverage must be continuous. Late monthly payments could affect your coverage. Do not wait until coverage lapses as policies cannot be backdated.
Both Valuation Coverage afforded above does not apply to: •Acts of God (earthquake, flood, tornado, etc.)
- Hostile warlike actions or acts arising from riots, civil commotion, strikes, or labor disturbances.
- Any article of extraordinary (unusual) nature or value, unless a special agreement has been stipulated to do so. Including but not limited to Jewelry, furs, stocks, bonds, cash, antiques, and art collections.
- Loss or damage resulting from wear and tear, moths or vermin, dampness of atmosphere or extremes of temperature.
- Acts or omissions of the shipper, such as neglecting to prepare for time of shipment.
- Internal electronic or mechanical items, whether packed or unpacked by Palmer Moving and Storage or the shipper.
- •Loss or damage consisting of breakage to fragile items, such as china, glassware, etc., unless packed and unpacked by Palmer Moving and Storage, or unless caused directly by fire, theft, collision, or overturn of transport vehicle.
- Marble -Due to the fragility of such items In most cases for reasons beyond our control, Palmer Moving and Storage will not take responsibility In terms of any type of coverage unless the item has been professional crated and prepared for shipment by our crews.
- Press-Wood I Particle Board items -Due to the fragility of such items, they must be properly disassembled. Otherwise, Palmer Moving and Storage will not take responsibility In terms of any type of coverage.
- All Electronic Items -Palmer Moving and Storage Is not responsible to any Internal damage to electronic or mechanical Items, whether packed or unpacked by Palmer or the shipper (MCU).