The majority of interstate household goods moving companies are good, honest companies. However, there are a handful of companies that violate the law and give the industry a bad reputation, causing government to act and to regulate the industry more heavily than before. The Federal Motor Carrier Safety Administration (FMCSA) receives hundreds of complaints from consumers due to damaged or missing household good items. When it comes time to file an interstate household goods claim form, the consumer sometimes finds out (too late) that their shipment is only covered under basic valuation coverage calculated at $0.60 per pound per article.
There are two types of liability protection available to shippers when moving household goods across state lines. The first is known as Full Value Protection (“FVP”), in which the mover is liable for loss, damage, or destruction of the shipment. The mover would be liable for the replacement value for the damaged or lost items. FVP costs extra money to the shipper.
The second option is known as $0.60 per pound per article. Under this level, the mover is liable for the loss, damage, or destruction of the shipment, at a rate calculated at $0.60 per pound for article. For example, the compensation for a 100 pound TV valued at $1,000 would only be $60.00. This level of protection does not cost the shipper any additional amount.
Shippers should also check with their homeowner’s insurance policy to see if any protection of the household goods shipment is available.
To read the full article from the FMCSA, click: Liability Protection for HHG in Interstate Transportation.
To view other household goods blog posts, click here.
The Law Office of David Piotrowski can assist moving companies with obtaining their operating authority, creating a tariff, and creating a custom Bill of Lading and other required household goods moving documents.