When you move your belongings with a professional moving company, you are entitled to certain protections in case your items are lost or damaged during the move. This protection comes in the form of valuation coverage, which determines the moving company’s legal liability for your belongings. However, it is important to understand that valuation coverage is not the same as insurance. Insurance policies are sold by licensed insurance agents, while valuation coverage is offered by the moving company as part of their service agreement. This distinction affects how claims are processed, the level of protection provided, and the way payouts are calculated.

Valuation Coverage Explained

  1. Valuation Claim Definition:
    A valuation claim pertains to the moving company’s liability for the value of the goods being transported. It is a predetermined amount that the moving company agrees to pay for any lost or damaged items.
  2. Coverage Options:

    1. Released Value Protection: The basic level of liability, which is offered at no additional cost, typically covers items at a rate of $0.60 per pound per item. This means if an item weighs 50 pounds, the mover’s liability would be $30.
    2. Full Value Protection: An upgraded option where the moving company is liable for the replacement value of the item or repair costs. This level of protection often comes at an additional cost and requires the customer to declare the value of their belongings.
  3. Cost:
    1. Released Value Protection is typically included at no additional charge.
    2. Full Value Protection requires an additional fee, often calculated based on the declared value of the shipment.

Key Differences Between Valuation Claims and Insurance Claims

Aspect Valuation Claims Insurance Claims
Regulation & Licensing Governed by FMCSA regulations; provided by the moving company. Regulated by state insurance laws; sold by licensed insurance agents.
Coverage Scope Covers only mover-caused loss or damage.  Covers a broader range of risks, including theft and natural disasters.
Payout Calculation Based on mover’s liability—however in most cases, either Released Value ($0.60 per pound) or Full Value Protection (repair, replacement, or reimbursement). Based on policy terms—could include depreciation, replacement value, or actual cash value.
Who Handles the Claim The moving company or a third-party administrator hired by them. Processed through an insurance company that investigates the claim.
How It’s Purchased Included in the mover’s contract, either free (Released Value) or paid (Full Value Protection). Purchased separately from an insurance provider before the move.

 

Understanding these differences can help you make informed decisions about protecting your belongings during your move. If you need more information about valuation coverage, feel free to contact your moving company to discuss your options.