LIability Coverage
CARRIER LIABILITY FOR HOUSEHOLD GOODS AND CUSTOMER VALUATION OPTIONS
- The carrier is liable for physical loss of, or damage to, any article from external cause while being packed, unpacked, loaded, unloaded, carried, or held in Storage-in-Transit, including breakage, if the articles are packed by the carrier and/or if the breakage results from negligence of the carrier. The amount of liability a carrier must assume depends on the level of valuation protection selected by the customer, as indicated on the bill of lading.
- The carrier is liable directly to the customer for loss and damage, regardless of any cargo insurance policies the company may have.
- Customers may include the following items in a shipment, however, the carrier is not responsible for the condition or safe delivery of: Coins, currency, deeds, notes, postage stamps, letters, drafts or valuable papers of any kind. Jewelry, precious stones, or precious metals. Items of extraordinary value. Items requiring temperature control. Household pets. Live plants. Perishable items. Furniture or other items made of pressboard, particle board or similar pressed material.
- The carrier is not liable for the loss of or damage to any article from external cause while being carried or held in Storage-in-Transit, due to the following circumstances:
- Breakage, when items are packed by the customer or the customer’s representative unless it can be proved that the breakage resulted from negligence by the mover in handling the articles.
- Internal damage to electronics (radios, stereos, VHS players, CD/DVD players, televisions, computers, printers, scanners, etc.) when no visible damage to the external packaging or contents exists or if the item was packed by the customer or the customer’s representative.
- Loss or damage from insects, moths, vermin, mold, fungus or bacteria within the customer’s belongings or that develop therein due to conditions present before the carrier picks up the customer’s belongings.
- Loss or damage because the item was in an obvious state of disrepair at the time of shipment, provided that the carrier noted the disrepair on the inventory.
- An act, omission, or order of the customer, or loss or damage resulting from the customer’s inclusion in the shipment of such articles as explosives, dangerous articles or dangerous goods.
- Defective design of an article, including susceptibility to damage because of atmospheric conditions such as temperature or humidity changes.
- Hostile or warlike action or use of any weapon of war (in time of peace or war), terrorism, insurrection, rebellion, revolution, civil war, usurped power, and action taken in hindering, combating, or defending against such occurrences:
- a) by any government or sovereign power, or by authority maintaining or using military forces;
- b) by military forces; or,
- c) by an agent of such government, power, authority or forces.
- Seizure, confiscation or destruction under quarantine by order of any government or public authority.
- Strikes, lockouts, labor disturbances, riots, civil commotions or the acts of any person or persons taking part in any such occurrence or disorder.
- Acts of God.
- The carrier will not accept the following items for shipment:
- Explosives.
- Dangerous goods.
- Property liable to damage carrier equipment or other property.
- The customer assumes all liability for goods left unattended by the customer before pickup by the carrier.
- The customer assumes all liability for goods when the customer directs the carrier, in writing, to unload or deliver property at a location that will be unattended.
- The amount of liability a carrier must assume depends on the level of valuation protection selected by the customer and the customer-declared value, as indicated on the bill of lading. Before providing service, the carrier must require the customer to state in writing on the bill of lading either the declared value of the shipment in cents per pound or a lump sum value for the entire shipment. If the carrier fails to obtain the customer’s declared value, the value will be based on the net weight or constructive weight of the shipment. • For long distance moves, the weight of the shipment is determined by recording the net weight. • For local moves, the weight of the shipment is determined by recording the constructive weight. Constructive weight is calculated by multiplying seven pounds times each cubic foot of space used in the moving vehicle.
- The customer may choose from three valuation options to determine the liability the carrier must assume for loss or damage. Each option has a different cost to the customer and represents a different level of carrier responsibility. The customer has the following valuation protection options and must, on the face of the bill of lading, select one of the options. The carrier must not load the customer’s goods until the customer selects an option and makes the appropriate notation on the bill of lading.
Option 1 – Basic Value Protection. This is the most economical protection option available to a customer and is the minimum level of responsibility a carrier must assume for a household goods shipment. This option provides coverage at $0.60 per pound per item. In case of loss or damage, the liability is $0.60 times the net weight of the lost or damaged goods. In the event of a loss or damage to one of a matched pair or set of items, the carrier’s maximum liability will be limited to the damage or loss of only the individual item. The customer incurs no additional cost for this level of coverage.
Option 2 – Replacement Cost Coverage with Deductible. This option provides full value coverage less a $300 deductible to the customer and a maximum carrier liability up to the declared value or $5.00 times the net weight of the shipment, whichever is greater. If the customer fails to select a level of valuation protection on the bill of lading, replacement value protection will be the default level in the case of a loss or damage claim. In the case of loss or damage the carrier must repair the damaged goods to the customer’s satisfaction, reimburse the customer or replace the damaged goods for any amount above the $300 deductible. The $300 deductible applies to the entire shipment rather than each individual item. For example, if the value of three lost items equals a replacement cost of $500, the carrier would be liable for $200 ($500 less $300 deductible). In the event of a loss or damage to one of a matched pair or set of items, the carrier’s maximum liability will be limited to the damage or loss of only the individual item, subject to declared value limitations. If the carrier decides to reimburse for or replace a lost or damaged item, the carrier may claim the lost or damaged item as its property. The basis for valuation of the following items will revert to depreciated or fair market value, even if the customer selects Option 2. The customer must provide information about these items and the carrier must list these items separately on an inventory that accompanies the bill of lading. • Any item which inherently cannot be replaced with new items such as antiques, fine art, paintings and statuary. • Items for which age or history contributes substantially to their value such as memorabilia, souvenirs and collector’s items. Rate applying per $100 of weight value (Declared value or $5.00 times the net weight of the shipment, whichever is greater, rounded to the nearest increment of $100.00) Minimum Maximum $0.55 $1.15 The cost to the customer for replacement cost coverage with deductible is calculated by: (i) Multiplying the net weight of the shipment by $5.00; rounding to the nearest increment of $100. (ii) Obtaining the customer’s declared value of the shipment. (iii) Determining the greater of (i) or (ii), above. (iv) Charging the customer a minimum of $0.55 and a maximum of $1.15 for every $100 as calculated in (iii), above. c. Option 3 – Replacement Cost Coverage with No Deductible. This option provides full value replacement coverage for the customer and a maximum carrier liability up to the declared value or $5.00 times the net weight of the shipment, whichever is greater. In the case of loss or damage the carrier will either repair, to the customer’s satisfaction, reimburse, or replace the lost or damaged item. If the carrier decides to reimburse for or replace a lost or damaged item, the carrier may claim the lost or damaged item as its property. Rate applying per $100 of weight value (Declared value or $5.00 times the net weight of the shipment, whichever is greater, rounded to the nearest increment of $100.00) Minimum Maximum $0.66 $1.40 The cost to the customer for replacement cost coverage with no deductible is calculated by: (i) Multiplying the net weight of the shipment by $5.00 (ii) Rounding to the nearest increment of $100. (iii) Charging the customer a minimum of $0.66 and a maximum of $1.40 for every $100 as calculated in (ii), above. The basis for valuation of the following items will revert to depreciated or fair market value, even if the customer selects Option 3. The customer must provide information about these items and the carrier must list these items separately on an inventory that accompanies the bill of lading. • Any item which inherently cannot be replaced with new items such as antiques, fine art, paintings and statuary. • Items for which age or history contributes substantially to their value such as memorabilia, souvenirs and collector’s items.
The customer is responsible for any additional insurance he/she wishes to purchase
AS AN OPTION, IF YOU WOULD LIKE ADDITIONAL COVERAGE BEYOND THE $.60 CENTS
PER POUND WE RECOMMEND THE BELOW THIRD-PARTY INSURANCE COMPANY:
