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

I'm in the process of receiving estimates for my move to Florida, and the moving estimators keep talking about $0.60 per pound of insurance. None of the moving company estimators explain this well, and I'd like to understand it better. Would you please explain what sixty cents per pound moving insurance means? Thank you.
- Ellen

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!  🙂


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