Moving Companies and Liability - What Are their Responsibilities and Duties in Case of Damage?
Author: Kris Beldin
From http://www.propertysold.ca/

Moving companies are responsible - and liable - for the damage they cause when transporting customers' goods. Professional movers are acquainted with the rules with which they have to comply, but their customers are probably not.

It is therefore important for you, as a potential customer, to understand what the law says about your rights and responsibilities with regard to the protection of your assets.

The Federal Highway Administration published a guide about moving that answers many of the questions about the laws, which can be technical at times. The first thing you should know is that there are different levels of liabilities. Moving companies provide customers with different options to protect goods; choose wisely what option is best for you.

OPTION 1: RELEASED VALUE

This option doesn't cost you anything, but can become very pricey if your expensive goods get damaged. Indeed, under this option, the moving companies will only reimburse the damaged good according to its weight. They will pay no more than 60 cents per pound per article. This wouldn't be comforting if your half-a-pound digital camera was broken. The shipper must sign a specific statement agreeing to this protection option.

OPTION 2: DECLARED VALUE

The second option offered is already more secure than the previous one. First, the moving company looks at the total weight of the shipment to establish the maximum liability. Then, the mover will multiply this weight in pounds by $1.25. Let's say you have a 2,000-pound shipment. The maximum liability of the moving company will be $2,500. If your half-a-pound digital camera is broken, the moving company will reimburse you based on the depreciated value of the camera. Because this option offers a better protection than the first one, you'll have to pay for it: $7 for each $1,000 (or fraction thereof) of insured shipment. In the case of the 2,000-pound shipment, you would pay $14.

OPTION 3: LUMP SUM VALUE

Option 3 is somewhat similar to option 2. Basically, if your shipment is very expensive (more than the insurance coverage you would get under option 2), you set up the maximum liability price. Then, as in option 2, you will pay $7 for each $1,000 (or fraction thereof) of insured shipment. If you think that your 2,000-pound shipment is worth $10,000, you will pay $70.

OPTION 4: FULL VALUE PROTECTION
The last option, called full value protection, is offered by many movers. Under this option, the moving company agrees to replace, repair or pay for a damaged good at the current market replacement value regardless of the depreciated value of the item. There are a few requirements for this option, explained in greater details in the FHA guide.

Whether you're moving to the neighboring community or going far away from your present residence, be sure you're fully aware of what you will be transporting, and how much you will be compensated if some of your possessions are damaged.

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