What is the mover's $.60 per pound moving insurance option?

Good question, Ellen! I've often thought that very few moving company estimators do a sufficient job of explaining what loss or damage coverage sixty cents ($0.60) per pound provides....so let me take a swing at it!

Firstly, I should mention that while they appear to function like "insurance," the loss/damage options offered by moving companies are not true "insurance" products. Rather, they are tariff-based loss/damage liability; this article may help you understand the difference. Now that we've gotten that out of the way, let's explain the coverage that sixty cents ($0.60) per pound provides:

Moving companies are licensed by the New York State Department of Transportation (for intrastate moves...moves which take place within New York State) and/or by the Federal Department of Transportation (for interstate moves...moves from one state to a different state). Each of these government entities mandates that all movers (at no additional cost to the customer) include the basic loss/damage liability of up to sixty cents ($0.60) per pound per article in their moving rates. This level of protection is provided at no additional cost to the customer; however, it provides only minimal protection for loss or damage to your belongings. Under this option, the mover assumes liability for loss or damage of no more than sixty cents ($0.60) per pound per article. This means that loss and/or damage claims are settled based on the weight of the individual lost or damaged article multiplied by sixty ($0.60) cents. For example, if a 50-pound television that was valued at $500 were to be lost or destroyed, the mover would be liable for no more than $30.00 (50 pounds multiplied by 60 cents = $30.00).

Alternatively, if your shipment was to weigh 10,000 pounds and (God forbid) the moving truck was to burn up in an accident -- and your shipment was completely destroyed -- your sixty cents ($0.60) per pound per article would be $6,000.00. Please note that we value a 10,000-pound shipment at no less than $50,000 to $60,000 (minimum). As a result, it's clearly apparent that, in the event of a catastrophic loss, your moving company's sixty cents ($0.60) per pound loss/damage liability option is woefully inadequate.

Alternatively, most movers offer optional full replacement value loss/damage liability, often with varying levels of deductible. This optional full replacement value liability comes at a cost that varies according to the deductible level selected by the customer.

I hope this gives you the information to understand your moving company's sixty cents ($0.60) per pound loss/damage liability options.

You can also browse all of our moving "insurance" guides, which are located here, and if you have any questions, please don't hesitate to give us a call.

Thank you for your question, and good luck with your upcoming move!  🙂