The Facts About Insurance
It is important to understand exactly how much the mover is responsible for in the unfortunate event that your goods are lost or damaged. This is governed by the valuation statement on the bill of lading. Valuation coverage/insurance is very detailed, so please read through the following information carefully to avoid any simple misunderstandings.
Limited liability is the minimum coverage required by law. If an item is lost or damaged, you would be reimbursed at $0.60 per pound/per article up to a cap maximum of $2,000; this is usually an amount which is far less than the actual value of the item. For example, if the mover damaged a photocopier that you bought for $2,500 and it weighed 150 lbs. you would be compensated $90. This coverage protects the movers’ liability more than the customers’ items.
We recommend that our clients purchase optional coverage called added-valuation. In the event of loss or damage, this type of coverage enables you to collect damages based on the actual value of the item at the current replacement cost, minus any depreciation, up to the limit of coverage. There would also be a deductible of $1,000 on eligible claims to be paid by The Customer. There is insurance coverage for up to $10,000 for a charge of $100, this the maximum amount available. In our previous example, if the mover damaged that same $2,500 photocopier and the current market value was still $2,500, the claim would be settled for $2,500; but if the fair market value was now $1,000, you would receive that reduced amount.
- Your business/home insurance policy may cover your property in transit.
- Consider arranging your own insurance policy for the move if your property is very expensive.
Rules & Regulations (Valuation Coverage)
- Unlike property insurance, valuation does not automatically pay for damages. It must be clearly shown that the mover damaged your property.
- Items in boxes not packed by the mover are not covered, unless there is clear evidence that the box was dropped or mishandled during the move.
- The mover is not responsible for any electronic item that does not function after the move, unless there is clear evidence that the item was dropped or mishandled during the move.
- Even if you see damages to items at the time of the move, you are legally responsible to pay the full amount owed for the move. Following completion of the move, you must go through the claims process.
- The mover is legally obliged to acknowledge your claim within 30 days and solve it, or offer a settlement within 120 days. It is Escarpment Movings’ policy to solve all damage claims within 30 days.