What kind of liability coverage do you provide as a Tennessee moving company?
As far as contents coverage, there are three basic coverages that we offer. It basically depends on what the customer chooses. We are required by law to offer a minimum coverage of 60 cents per pound per article, which means if a 100-pound item were damaged, you’d have sixty dollars on that item as a minimum coverage.
Our basic coverage is a dollar and a quarter, so we’re basically doubling the minimum requirements there. That dollar and a quarter says that if you have 10,000 pounds moving, at a dollar and a quarter, your total coverage is $12,500 coverage. It means that if there were to be a total loss, that would be the maximum amount that you have on that. That’s built into the rate and does not cost anything extra.
Then, there’s a 2.25 coverage, which bumps that up a dollar a pound and gives you a little more coverage. Then, the final option is replacement coverage. Replacement says if an article is damaged, it’s either repaired, replaced, or cast out at today’s market value. To get that number for the whole shipment, we take the estimated weight times six dollars per pound. On a 10,000-pound shipment, $60,000 is what the minimal amount is for replacement coverage. Then, we have the cost for that. It’s actually 75 cents per $100 worth of coverage, so it does have a component that we’ll replace the items. If you decide that you want to do replacement and need more than the six dollars per pound, you can definitely get that. You just cannot insure your items for less than six dollars per pound.