Relocating an Employee Within the United States

Mover Estimates

Movers will provide the employee and company with an estimate of the weight and cost of the move. This should be done so that both parties know what the cost will be. This cost can shift dramatically depending on what is important to take to the new location. The estimate also identifies items that require special handling. The accessibility of the old and new residences should also be included in this estimate.

Insurance

Relocation programs usually insure household goods for loss or breakage during transport. This is known as valuation coverage. The available options are:

• released value
• full value
• third party

Released value. Tariff regulations require movers to insure household goods for at least 60 cents per pound, per article. There is no additional charge for this level of coverage.

Q: Why is it called “released value”?

A: Because the employee must agree to this minimal level of coverage.

This coverage should only be accepted if:

• there is no other insurance that covers the move
• OR
• the company is willing to self-insure the move beyond the released value coverage

If the employee does not select Released Value, the shipment will automatically be transported at the Full Value Protection level of liability and the shipper will charge for this additional protection.

Full value. If an item is lost, damaged or destroyed, this coverage requires the shipper, at its discretion, to offer:

• Repair of the item
• Replacement with a similar item
• A cash settlement for the cost of repair or the current market replacement value of the item

Full value is the most common choice of employers transferring employees. It minimizes bad feelings when there is breakage. Sometimes the company will opt for a policy with a deductible that protects the household goods, in which the company pays the deductible amount.

Third party If an employer does not want to self-insure when an employee has expensive or rare items, it may buy insurance from a third-party moving insurance provider since these companies offer the most extensive coverage plans and have the expertise to value the property. This insurance covers any damage not covered by the minimal released value insurance.