When you're planning a big move, hiring professional movers might seem like a no-brainer. But did you know that buried in the fine print of your moving contract could be a loophole that leaves you with only pennies on the dollar for damaged or lost belongings? This loophole is not only legal, it has been enshrined in federal regulation for years. Here’s what you need to know before you sign on the dotted line.
The 60 Cents Per Pound Rule: A Costly Oversight
Under federal law (49 CFR § 375.201), moving companies are allowed to limit their liability for lost or damaged items to just 60 cents per pound per article, unless the customer elects a higher level of protection. This rule, while legal, can be financially devastating. Let’s say you own a flat-screen TV worth $500 that weighs 20 pounds. If it’s damaged in transit under the basic liability coverage, you would receive only $12 in compensation. That’s not just unfair, it’s shocking.
This level of protection is known as “Released Value Protection”, and it’s the default option provided at no extra cost. However, most customers are unaware of what they’re giving up in return for this seemingly free coverage.
Why Full Value Protection Is Worth It
To truly protect your belongings, you need to choose “Full Value Protection” instead of the basic 60 cents-per-pound coverage. Full Value Protection requires the moving company to either repair the item, replace it, or offer a cash settlement for the current market value of the lost or damaged item. So that same $500 TV would actually be covered for its real value, not its weight.
While Full Value Protection typically costs more, the difference in potential compensation is dramatic. And yet, many consumers skip this option either to save a few bucks or because they simply don’t realize what they’re giving up.
The Importance of Reading the Fine Print
Many movers present their pricing in a way that makes the cheaper option look appealing, but they often fail to clearly explain the limitations of Released Value Protection. This misleading practice has been criticized for decades, but it continues under the banner of federal compliance.
If you’re planning a move, ask specifically about your coverage options, and don’t be afraid to insist on Full Value Protection, especially if you have expensive or irreplaceable items. If something goes wrong and you haven’t opted into Full Value Protection, your chances of receiving fair compensation are slim.
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