Your goods, door to door.

How a trucker limits what it owes you

Before I size a shipper's cargo policy, I want to see the carrier's paperwork, because federal law lets a carrier agree to owe less than your goods are worth. Under 49 U.S.C. 14706(c)(1)(A), a carrier may set rates that limit its liability to a value established by your written or electronic declaration, or by written agreement between you and the carrier, if that value would be reasonable under the circumstances surrounding the transportation. These are commonly called released rates.

• Ask for the rules in writing. A motor carrier that isn't required to file its tariff must give you, on request, a written or electronic copy of the rate, classification, rules and practices that any rate on your shipment is based on, and the copy must clearly state the dates they apply (14706(c)(1)(B)).
• Find the declared or agreed value. If you declare or agree to a released value, that number can become the most you recover from the carrier. Compare it with the load's invoice value.
• Household goods are handled differently. The released-rate rule in (c)(1)(A) does not reach household goods described in 49 U.S.C. 13102(10)(A). Those follow 14706(f), covered below.

A shipper's own cargo policy is written around the goods you own, while the trucker's motor truck cargo policy is built around the carrier's legal liability. Which one answers a given loss depends on each policy's wording; see my page comparing shipper's cargo insurance and motor truck cargo.

Moving your own home: Full Value or Released Value

If you're moving, Appendix A to 49 CFR Part 375 ("Your Rights and Responsibilities When You Move") describes two liability levels on an interstate move. Both describe what the mover owes; neither is an insurance policy issued to you.

• Full Value Protection is the default. Your shipment moves at this level unless you waive it. Subject to exceptions in the mover's tariff, if an article is lost, destroyed or damaged in the mover's custody, the mover will, at its option, repair it or pay for the repair, or replace it with an article of like kind and quality or pay the cost to replace it. Deductible levels may apply.
• Released Value is a written waiver. As Appendix A states it, the mover's liability is no more than 60 cents per pound, per article. Its own example: a lost 10-pound stereo component valued at $1,000 yields no more than $6.00. Under 14706(f)(3), released rates apply to household goods only if you waive full value in writing.
• List high-value items. Under Full Value Protection, the mover may limit its liability for articles of extraordinary value, meaning any item worth more than $100 per pound (jewelry, silverware, china, furs, antiques or oriental rugs, for example), unless you list them on the shipping documents.
• Third-party insurance is separate. The mover may, but is not required to, offer to sell you separate third-party insurance. If you buy it through the mover, the mover must give you a copy of the policy or other written record at the time of purchase, and disputes with that insurer are not subject to FMCSA regulations.

Before you sign any waiver, check what your homeowners policy says about property in transit, and send me the mover's paperwork if you want a second read.

Official sources

• 49 U.S.C. 14706, Liability of carriers under receipts and bills of lading (Cornell LII)
• 49 CFR 387.301T, Surety bond, certificate of insurance, or other securities (Cornell LII)
• 49 CFR 387.303T, Security for the protection of the public: Minimum limits (Cornell LII)
• 49 CFR 387.313T, Forms and procedures (Cornell LII)
• 49 CFR Appendix A to Part 375, Your Rights and Responsibilities When You Move (Cornell LII)
• 21 CFR 1.900, Sanitary transportation: who is subject (Cornell LII)
• 21 CFR 1.908, Requirements applying to vehicles and transportation operations (Cornell LII)
• 21 CFR 1.910, Training of carrier personnel (Cornell LII)
• 21 CFR 1.912, Records (Cornell LII)
• 21 CFR 1.904, Definitions for the sanitary transportation subpart (Cornell LII)