In recent months we have noticed a rise in insured’s claims for high value items, fine arts and antiques without proper valuation and documentation specific to that item on the bill of lading or warehouse receipt.

The insured must have the shipper specifically inventory the high value item, artwork or antique in excess of $5000 collectively in order for the proper coverage to be applied to our insured in the case a claim is to be filed by a shipper for damage or missing items.

We have created a sample High Value Inventory Form and Storage Letter for your review. If you do not already have one in place we strongly encourage you to place your company logo and information on these forms and incorporate them in your company procedure when booking a move or storage customer with a declared value, making them aware of the Fine Arts and Antiques sublimit. We also highly recommend that you send the storage letter with high value inventory form to existing storage customers so they can properly document any of these specific items from their existing goods being stored in your warehouse that currently do not have adequate documentation on file. A specific sublimit of only $5000 applies to fine art and antiques if the shipper has not specifically shown the item on the high value inventory sheet and declared a value. This includes those shipments when the shipper may have selected a declared or replacement cost valuation on the entire shipment. Remember, the more paperwork you have and the better it is filled out, the better chance the carrier has to defend you when a claim or suit is filed.

Please reference below the AIG Policy Terms and Conditions under the Moving and Storage Coverage Form 84308 (08/04) outlining the coverage that would apply if the documentation is filled out correctly. By presenting these documents to the shipper at the time the arrangements are being made for the move or storage, it will avoid many of the possible coverage issues or potential uncovered exposure per the policy provisions.


A. Coverage’s and Insuring Agreements:

1. Coverage A.-Liability as a Carrier
   We will pay those sums that you become legally obligated to pay as damages because of accidental loss of or damaged to “Shippers Goods”, including “household goods”, office furniture and fixtures, and other property described in the “Shipping Document” and while in your custody and control in the ordinary course of transit, or while being moved within or between the “shipper’s” location(s).
   
   
2. Coverage B.-Liability as a Warehouse Operator
   We will pay those sums that you become leally obligated to pay as damage because of accidental loss of or damage to “customer’s” goods, including “household goods”, office furniture or fixtures, and other property which you have accepted under a “shipping document” or a “storage document” for storage, repositioning, packing, crating, or similar service. The loss of or damage to the “customer’s” goods must occur during the coverage period at a “specified location” or a “temporary location”. Accidental loss of and damage to includes the sale We will pay those sums that you become leally obligated to pay as damage because of accidental loss of or damage to “customer’s” goods, including “household goods”, office furniture or fixtures, and other property which you have accepted under a “shipping document” or a “storage document” for storage, repositioning, packing, crating, or similar service. The loss of or damage to the “customer’s” goods must occur during the coverage period at a “specified location” or a “temporary location”. Accidental loss of and damage to include the sale, removal or disposition of “customer’s” goods resulting from your error.
   

If as a result of accidental loss of or damage to “customer’s” or shipper’s” property, you are also found liable for duties and taxes, we shall consider such duties and taxes covered as damages.

We will defend any “suit” seeking those damages mentioned above. We may investigate and settle any claim or “suit” at our discretion. We do not have to provide a defense after we have paid the applicable limits of insurance on judgments or settlements.

B. Property Not Covered:

We will not pay for loss of or damage to the following property:

1. Fine Arts and Antiques in excess of $5000 collectively, unless inventoried, scheduled and made a part of the “shipping document” and/or “storage document”
   
   For Fine Arts and Antiques, we will pay the lesser of:
   1. the original acquisition cost, or
   2. the market value at the time of loss, or
   3. the stated limit on the schedule that is part of the “shipping document” and/or “storage document”, or
   4. the appraised value.
2. Property not under a “shipping document” or “storage document”.

Again, please take the time and opportunity to advise your insured’s regarding the importance of complete shipping documents to avoid any possible coverage issues or potential uncovered exposure to the insured per policy provisions.

Please call me to discuss any questions or concerns you have regarding this issue.

Sincerely,

Sandy Quiett
Claims Manager
Paul Hanson Partners
Mover’s Choice
sandraq@paulhanson.com
707-261-2713-Direct Line


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