Under Federal law, interstate movers must offer two different liability options referred to as valuation coverage: (1) Released Value and (2) Full Value Protection.
(1) Released Value
The most economical protection available is Released Value, since it is offered at no additional charge. However, the protection is minimal. Under this option, the mover assumes liability for no more than 60 cents per pound per article. For example, if your mover lost or damaged a 10-pound stereo component valued at $1,000, you would only receive $6.00 in compensation (60 cents x 10 pounds).
There is no additional charge for Released Value.
However, you must sign a specific statement on the bill of lading or contract agreeing to it. But remember, it compensates you according to the weight of the item, not its actual value. And, if you do not select Released Value, your shipment will automatically be transported at the Full Value Protection level of liability and you will be assessed the applicable charge.
Full Value Protection and Released Value are not insurance policies governed by State insurance laws, instead, they are Federal contractual tariff levels of liability authorized under Released Rates Orders of the Surface Transportation Board of the U.S. Department of Transportation.
If you select Released Value, some movers may also offer to sell or obtain for you separate liability insurance. The cost of this insurance is not included in the basic move and must be purchased separately by you. This is not valuation coverage governed by Federal law—it is optional insurance regulated by State law.
If you purchase this coverage, the mover remains liable for the amount up to 60 cents per pound per article, but the rest of the loss is recoverable from the insurance company up to the amount of insurance you purchased. Your mover is required to issue the policy or other written record of the purchase and provide you with a copy at the time of purchase.
You also have the option of purchasing insurance from a third-party insurance company. Before purchasing insurance, check your homeowner’s insurance policy to see if you’re already covered.
If you’re moving within your State…
Each State may have its own rules and regulations governing moves within the State. Check with your State, county or local consumer affairs agency or State moving association if you’re moving to a new location within the same State.
(2) Full Value Protection
Under Full Value Protection, your mover is liable for the replacement value of lost or damaged goods in your entire shipment. This is the more comprehensive plan available for the protection of your belongings. Unless you select the alternative level of liability described on the first potion —Released Value— your mover will transport your shipment under the Full Value Protection level of liability. If any article is lost, destroyed or damaged while in your mover’s custody, your mover will, at its discretion, offer to do one (1) of the following for each item:
1. Repair the item.
2. Replace with a similar item.
3. Make a cash settlement for the cost of the repair or the current market replacement value
Under this option, movers are permitted to limit their liability for loss or damage to articles of extraordinary value, unless you specifically list these articles on the shipping documents. An article of extraordinary value is any item whose value exceeds $100 per pound (i.e., jewelry, silverware, china, furs, antiques). Ask your mover for a written explanation of this limitation before your move.
The exact cost for Full Value Protection varies by mover and may be subject to various deductible levels of liability that may reduce your cost. Ask your mover for written details of their Full Value Protection plan.
Many moving companies offer insurance packages to help protect your possessions during the moving process. You can also check with your existing homeowners or renter’s insurance policies to see what they cover.
Here are two different types of policies you might see:
All-risk insurance policy – provides coverage for any cause of damage or loss unless the cause is specifically excluded, such as wear and tear – and typically breakage and marring.
Named peril insurance policy – provides coverage only for the causes (perils) that are specifically listed in the policy – such as fire, lightning, windstorm, etc.
Most Homeowner’s policies provide all-risk coverage for buildings and named peril coverage for personal property. Renter’s policies may be written on either a named peril or all-risk basis. No matter which option you go with, it’s important to make sure your belongings are protected.
For additional full value insurance please contact a moving insurance company directly: Here are a few companies that we work with.
Phone # 800-411-0913
Baker International Insurance:
Phone # 800-356-0099
Phone # 888-893-8835
We at Impress Moving & Storage look forward to assisting you, please contact us at any time to further discuss your move with one of our friendly relocation consultants at 888-885-8900.