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What is Carrier Liability?

We’re all human.  Things happen during a move.  Understanding carrier liability is complicated, but necessary.  The number-one complaint coming into CAM is that consumers didn’t understand whether, and to what extent, their household goods were protected against loss or damage during transport.  

Released Value Protection

When you book your move, your mover must provide a basic level of liability, often called “Released Value Protection,” at no extra cost.

This only covers your goods for a small amount, which is usually not enough to replace them if they are lost or damaged.  For example:

• Under released valuation, the mover’s liability is limited to $0.60 per pound ($1.32 per kg) per article for household goods under provincial conditions of carriage regulations. This would mean that a table weighing 100 lb. that is being shipped and which is unfortunately damaged beyond repair would result in a cash settlement of $60 (100 lb. x $0.60 per lb.) even if the actual replacement cost of the table was $1,000.
• The released valuation limits your claim to a maximum amount based on the total weight of your shipment (including the weight of cartons). For example, in the unlikely event of a total loss, let’s say by fire, your maximum protection would be $0.60 per pound multiplied by the weight of your entire shipment. If your shipment weighed 5,000 lbs., the maximum settlement would be $3,000 (5,000 lbs. x $0.60 per lb. = $3,000).

Increased Carrier Liability

To better protect yourself, you can choose increased carrier liability, which raises the mover’s responsibility up to the realistic replacement value of your shipment for an additional charge. You and your mover agree on a total value for your shipment (often with a minimum such as $10.00 per pound multiplied by the weight of your goods), and the mover’s liability is based on that declared amount.  

For example, if your shipment weighs 10,000 pounds, you might be required to declare at least $100,000 in value ($10 x 10,000), so that if something is unfortunately lost or damaged, the mover’s liability reflects what it would actually cost to repair or replace it today.

Your moving company can provide you with the cost of increased carrier liability, as well as information on declaring items of extraordinary value, such as antiques, artwork, and vehicles.

If you choose not to purchase (or waive) the increased liability options offered by the mover, the Released Valuation is used.

It is important that you understand your level of protection and that your bill of lading clearly notes the liability option you selected and is signed properly by all parties involved. A Carrier Liability Certificate should be given to you because it clearly defines the mover’s liability for your shipment.

Does my personal homeowners policy cover my personal effects when moving from one home to another?

(Courtesy of NFP Canada)

The answer is...sometimes. Generally speaking, your personal property policy will cover your items while in transit to, and at another location in Canada which is occupied by you as your principal dwelling.

• The limit of insurance for your personal property will be divided between the existing premises, the belongings that are in transit and the new location on the basis of the percentage of the total value of the property at each location.
• Coverage only applies for a limited number of days (e.g. 30 - 90 consecutive days) from the day you begin removing your personal property from your principal dwelling and not beyond the date the policy expires or is terminated.
• Not all losses will be covered, as the policy limits and/or excludes certain types of losses, e.g., marring or scratching of any property, or breakage of any fragile or brittle articles unless caused by an insured peril. It's always best to purchase coverage from your moving company.
• Any claims made on your homeowners policy will affect future premiums. The claims-free discount, applicable to most policies, ranges from 10% to 20% of the total policy premium. They will also have a deductible of at least $500, and more likely $ 1,000 today.
• Homeowners are often quite unhappy when they are forced to make a claim under their own policy due to what is perceived as the mover's negligent actions, who is a paid professional.