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Understanding Household Goods Movers Insurance Coverage

When transporting household goods, movers must carry specific insurance to protect both their business and their clients. This coverage ensures financial protection in case of accidents, theft, or damage during the move.

Federal Insurance Requirements for Interstate Moves

For movers operating across state lines, the Federal Motor Carrier Safety Administration (FMCSA) mandates certain insurance coverages:

• Public Liability Insurance: This includes:
  • Bodily Injury: Coverage for injuries to individuals.
  • Property Damage: Protection against damage to property.
  • Environmental Restoration: Costs associated with environmental damage.
• The required minimum coverage varies based on the type of freight and vehicle weight. For household goods, the minimum is typically $750,000 .
• Cargo Insurance: Movers must also have cargo insurance to cover the goods being transported. The minimum required is:
  • $5,000 per vehicle
  • $10,000 per occurrence
• This ensures that if items are damaged or lost, there is financial compensation .
• BOC-3 Filing: This form designates legal agents in each state, allowing for legal processes to be served if necessary .

State-Specific Insurance Requirements

While federal regulations apply to interstate moves, each state may have its own requirements for intrastate moves (those within the same state). For instance, in California:

• Liability Insurance: The minimum coverage is:
  • $250,000 for bodily injury to or death of one person.
  • $500,000 for bodily injury to or death of more than one person.
  • $100,000 for damage to or destruction of property other than the property being transported.
  • Alternatively, a combined single limit of $600,000 .
• Cargo Insurance: The minimum coverage is $20,000 per shipment .

Types of Liability Coverage for Customers

Movers must offer two types of liability coverage:

• Full Value Protection: Movers are responsible for the replacement value of lost or damaged goods. This is the more comprehensive option but may come at an additional cost.
• Released Value Protection: This is the basic coverage, typically offered at no additional charge. However, it only covers up to 60 cents per pound per item. For example, if a 50-pound item is damaged, the compensation would be $30 .

Importance of Proper Coverage

Having the right insurance coverage is crucial for both movers and their clients. It ensures that in the event of an accident or damage, there is financial protection. Movers should always verify their insurance policies and ensure they meet both federal and state requirements.

Saberlines Insurance offers comprehensive coverage options tailored for household goods movers, ensuring compliance and protection for your business.