Full replacement value for personal property begins soon

Published Aug. 8, 2007

ALEXANDRIA, Va. (AFPN) -- Department of Defense customers, including servicemembers and DOD civilians, will soon be eligible for full replacement value protection on most DOD-funded personal property shipments.

Full replacement value coverage will apply to personal property shipments with a pickup date on or after:

-- Oct. 1, 2007, for international shipments to and from outside the continental United States.

-- Nov. 1, 2007, for domestic shipments within the continental United States.

-- March 1, 2008, for nontemporary storage.

-- March 1, 2008, for local move/direct procurement method shipments.

Under the full replacement value program, the transportation service provider is liable for the greater of $5,000 per shipment, or $4 times the net weight of the shipment, in pounds, up to $50,000.

Customers must provide prompt notice of loss and damage. The customer must submit a DD Form 1840, listing all damage discovered at delivery, or DD Form 1840R listing all damage discovered after delivery, to the provider within 75 days of delivery. The provider has the right to inspect the damaged items once the notice forms are received.

Customers will not face an additional charge for full replacement value coverage and must file the claim directly with the transportation service provider within nine months of delivery by using DD Form 1844 to receive full replacement value. The provider will settle the claim by repairing or paying to repair damaged items. The provider will pay full replacement value cost on items that need replacing or have been lost or destroyed. When the claim is filed directly with the provider, the provider will be responsible for obtaining all repair and replacement costs.

If the provider denies the customer's full claim, makes an offer on the claim that is not acceptable, or does not respond within 30 days, the customer may transfer the claim to the military claims office. If a customer files a claim with the provider after nine months, but before the two-year time limit for filing the claim, the provider is only liable for depreciated value of lost or damaged items.

If the customer transfers the claim to the military claims office within nine months of delivery, the claims office will only be responsible for depreciated replacement costs. The claims office will then attempt to recover full replacement value from the provider. If successful in recovering the full replacement value, the claims office will then pay the customer the difference between the depreciated cost already paid and the full replacement value cost.

The Military Surface Deployment and Distribution Command has published detailed full replacement value guidelines that govern coverage on its Web site at www.sddc.army.mil. SDDC is the executive agent for DODs Personal Property Program, managing expenditures of nearly $1.9 billion each year.