Carrier Protection
A carrier does not carry an insurance policy to cover each individual item in your home; instead, carriers have an insurance policy that covers your entire shipment when it is being transported from the point of origin to the point of destination. It is the carrier who will compensate you, not the carrier's insurance policy, for each damaged article.

It is incorrect to believe carrier damage claims are handled similarly to vehicle insurance coverage. The most common insurance policy is vehicle insurance, and people expect a 100% compensation package, when an accident occurs and they are not at fault. Having a worry-free consciousness, when moving, misleads the shipper into falsely assuming each item, in their home, is covered at FULL VALUE.

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Types of Coverage
Upon singing the Agreement for Moving Services, you will be asked to declare the value of your goods, ranging from $0 to a maximum of $20,000. Following the declaration of value, the mover will discuss the different coverages.

There are three types of damage protection all Household Goods Movers provide:
  • Standard Rate (60 cents per lbs.)
  • Actual Cash Value
  • Full Value

As stated in the California Public Utilities Commission (PUC) Maximum Rate Tariff 4*:

ITEM 136
DECLARATION OF VALUE -- VALUATION RATES

1) The transportation rates provided in this tariff are based upon a declared value of $0.60 per pound per article, for the actual weight of any article(s) in a shipment. The declared value shall be deemed to relate to all services undertaken by carrier or its agents.

1) Unless shipper expressly declares a value other than $20,000 for the shipment, carrier's maximum liability for lost and damaged articles in a shipment shall be up to $20,000 of actual cash value.

The three forms of protection are based on a valuation rate, which must be filled in upon singing the Agreement for Moving Services.
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Items used in the following examples:

Lamp
Price $100
Weight 5 pounds

Dresser
Price $500
Weight 150 pounds

42" LCD HDTV
Price $1,500
Weight 50lbs.

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Standard Rate (60 cents per lbs.)

As previously stated, the carrier is responsible for covering damages caused by their movers. Shippers have the liberty to purchase movers insurance from a third party or enhance their coverage from the carrier. Of course, both alternatives provide preferred coverage but it does mean you have to pay a premium. At no cost, however, the standard rate provides basic protection for all shippers.

A simple formula is used, in order to determine the damage compensation for each article:

WEIGHT (POUNDS) x $0.60 = DAMAGE COMPENSATION

Items with a higher price to weight ratio may produce an unfavorable compensation, if it is determined that the damage was done by our movers. For example, although the lamp may be worth $100, according to the valuation rates, the carrier will use the actual weight of any article in the shipment in making this decision. The Damage Compensation formula is used. In this case, $3.00 will be given to the shipper for damages.

Lamp: 5lbs. x $0.60 = $3.00

Dresser: 150lbs. x $0.60 = $90

LCD HDTV: 50lbs. x $0.60 = $30

The intentions behind the standard rate is not to take advantage of the shipper, but instead, to provide a basic protection in case something does go wrong during the move. All local moving companies have similar coverage and they all have accidents. They are differentiated by the methods they use handle these claims. Don't be ignored because you have basic rights.

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Actual Cash Value

When Actual Cash Value protection is ordered in writing by the shipper, the carrier will guarantee recovery for articles lost and damaged while in its possession at the actual cash value up to the declared value, or if non, $20,000*. This coverage behaves more like Kelley Blue Book, market value is used in determining the Actual Cash Value.

Although the lamp was purchased two years ago for the price of $100, the price to replace a used lamp is not the same as purchasing a new one, much like buying a used car. Personal attachment of the possession is not taken into consideration. In this case, the lamp's market value is $50.

Lamp: ACV = $50

Dresser: ACV = $250

LCD HDTV: ACV = $750

Premium
The maximum fixed rate for Actual Cash Value protection provided by the carrier will be $0.75 for each $100 (or fraction thereof) of declared value*. The declaration value can be for the entire shipment, based from the declaration of value, or for the entire shipment, up to $20,000.

Table of Premiums:
Declared Value - Price
$5,000 - $37.50
$10,000 - $75
$20,000 - $150

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Full Value

When Full Value protection is ordered in writing by the shipper, carrier shall guarantee either replacement, reimbursement for full replacement cost, or satisfactory repairs of article(s) lost or damaged while in carrier's custody, up to the declared value*.

Lamp: FV = $100

Dresser: FV = $500

LCD HDTV: FV = $1,500

Premium
The maximum fixed rate for Full Value protection provided by the carrier will be $1.40 for each $100 (or fraction thereof) of declared value. Once again, the shipper can either declare the value of specific items of value or the entire shipment, considering your premium will increase based on your valuation.

Table of Premiums:
Declared Value - Price
$5,000 - $70
$10,000 - $140
$20,000 - $280

Full Value Deductibles
Deductibles are a great option for shippers who have possessions of high monetary value and do not want to incur exorbitant premiums of Full Value coverage. Going back to our sample items, Full Value protection is not ideal for neither the lamp nor the dresser, but it is ideal coverage for the LCD HDTV. A deductible will only be a fraction of the Full Value of the LCD HDTV.

$250
When the shipper assumes responsibility for the first $250 of any claim, the maximum fixed rate shall be $0.45 fore each $100 (or fraction thereof) of declared value*.

Table of Premiums:
Declared Value - Price
$5,000 - $22.50
$10,000 - $45
$20,000 - $90

$500
When the shipper assumes responsibility for the first $250 of any claim, the maximum fixed rate shall be $0.25 fore each $100 (or fraction thereof) of declared value*.

Table of Premiums:
Declared Value - Price
$5,000 - $12.5
$10,000 - $25
$20,000 - $50

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*excerpts from the MAXIMUM RATE TARIFF 4, courtesy of California PUC

Insurance Info
©2010 Streamline Moving | CAL P.U.C T-190681 | 619.600.5151