Interstate movers must offer two levels of liability, called valuation: full value protection and released value. Full value protection is the default and covers replacement value. Released value costs nothing extra and pays no more than 60 cents per pound per article.
| Full value protection | Released value | |
|---|---|---|
| Mover pays | Replacement value of lost or damaged goods, up to the declared value of the shipment | No more than 60 cents per pound per article |
| Cost to you | Varies by mover; deductible levels may lower it | No extra charge |
| How you get it | Automatic unless you choose released value | You must sign a specific statement on the bill of lading |
Sources for the table: FMCSA, Liability & Protection and 49 CFR 375.201.
What released value pays in practice
FMCSA gives this example: if the mover loses or damages a 25-pound television under released value, you receive $15, which is 60 cents times 25 pounds, no matter what the television cost (FMCSA).
High-value items
Under full value protection, a mover may limit its liability for an item worth more than $100 per pound to $100 per pound unless you list that item in writing. If you do list it, you can recover up to its declared value (49 CFR 375.203). Jewelry, china and furs are FMCSA's examples (FMCSA). Ask the mover for its limitation in writing before the move.
Valuation is not insurance
Valuation is the mover's liability under federal rules. A mover that says all your goods are covered by its insurance is on FMCSA's list of red flags (FMCSA). If a mover sells you liability insurance, it must give you a copy of the policy or other evidence of it, or it may carry added liability (375.201(d)).
What can reduce the mover's liability
- Packing perishable, dangerous or hazardous items without telling the mover (375.203(a)).
- Packing boxes yourself, which can make damage to those boxes harder to claim (FMCSA).
- Not telling the mover in writing about items of extraordinary value (FMCSA).
- Signing a delivery receipt that releases the mover from liability. Federal rules bar that language on delivery receipts (375.701), and FMCSA advises striking it out if you see it (FMCSA).
- Reporting loss or damage late (FMCSA).
Filing a damage claim
- File in writing within nine months of delivery. The mover's claim form is optional; a written claim is required. FMCSA suggests sending it by certified mail (FMCSA).
- Include what the rules require. Enough facts to identify the shipment, a statement that the mover is liable, and a specific or determinable dollar amount (49 CFR 370.3).
- Expect an acknowledgment within 30 days and a payment, denial or firm settlement offer within 120 days, or a written status update every 60 days after that (49 CFR 370.5 and 370.9).
- Check the settlement method. Household goods movers settle claims from the replacement cost of the item minus depreciation (370.9(b)).
If you disagree with the offer
Interstate movers must run an arbitration program for loss and damage disputes. If you ask for arbitration on a claim of $10,000 or less, it is binding; above $10,000 the mover must also agree. You cannot be charged more than half the cost of starting it, and the mover cannot require you to agree to arbitration before a dispute arises (49 CFR 375.211). Going to court is the other route. Complaints, arbitration and lawsuits.
In-state moves
Each state may set its own liability rules for moves within the state (FMCSA). Your state page lists the liability rule we could confirm, if any.
Sources
- Liability & Protection , Federal Motor Carrier Safety Administration
- 49 CFR 375.201, normal liability for loss and damage , Electronic Code of Federal Regulations
- 49 CFR 375.203, shipper actions that limit liability , Electronic Code of Federal Regulations
- 49 CFR 375.701, release language on delivery receipts , Electronic Code of Federal Regulations
- 49 CFR 375.211, arbitration program , Electronic Code of Federal Regulations
- What if there are problems? , Federal Motor Carrier Safety Administration
- 49 CFR Part 370, loss and damage claims , Electronic Code of Federal Regulations
- Spot the Red Flags , Federal Motor Carrier Safety Administration