There are three different kinds of coverage for clients when their household goods are in transit. The protection of your belongings during a move are Released value, Full value protection and Third parity insurance.
Released Value: used by every HHG (household goods mover) in Texas and is required to at least provide this protection. This Value provides coverage at sixty cents per pound per article for the entire shipment. In the event of a claim, the over would determine the weight of the damaged article in pounds; multiply that number by sixty cents, offer this amount to settle the claim.
For example, during a move, a 100 percent dresser valued at $1,000 was destroyed. The shipper would receive a check for $60 (60 x 100 pounds=$60).
Full Value Protection: with this option, the moving company is liable for the replacement value of lost or damaged goods. The mover has three options in the event of a claim.
- Repair the item
- Replace the item with a smaller item
- Offer a cash settlement for the cost of repair or for the replacement value.
For example, during a move, a 100 pound dresser valued at $1000 was destroyed. Assuming the dresser was damaged beyond repair, the mover would either replace the dresser with a new one or offer a settlement in the amount of $1,000.
Third Party Insurance: is when the shipper can protect their shipment by going to a third party insurance company. The moving company is still liable for sixty cents per pound per article and the rest of the loss is recoverable directly from the insurance company. You may have insurance coverage through your homeowner’s policy. You would need to check your coverage with your homeowner’s policy. Some insurance companies have relocation insurance.
Ready to Move brochure can be downloaded from the Federal Motor Carrier Safety Administration site.