Typically called limited liability, this is the minimum coverage required by law. This insurance is covered in the base price of your move and does not cost you any extra money. It is the most economical option available, but your goods are covered to no more than 60 cents per pound per article for an interstate move. The coverage for local moves is commonly 30 cents per pound, but that can very from state to state.

This minimal amount of liability that must be provided to the consumer when transporting goods is called released value. Loss or damage claims are settled based on the pound weight of the article, multiplied by 60 cents. For example, if you have a 10-pound computer and it is destroyed in transit, you would be entitled to a total of $6.00 for its replacement. Obviously, this amount of money would not replace your computer, so think carefully before agreeing to this kind of coverage. If you agree to this option for insurance coverage you will be asked to sign a specific statement in agreement on the bill of lading.

More in this subject:

Insurance & Liability

Declared Value Protection

Full (Replacement) Value Protection

Homeowners Insurance

Extraordinary Value Items