Overview

Valuation coverage is the level of liability a moving company accepts for lost or damaged items during a move. It’s not insurance, but it offers limited protection. Movers must provide two options: Released Value Protection (minimal coverage at 60 cents per pound per item) and Full Value Protection (coverage based on an item’s current value, usually for a fee). Valuation doesn’t cover everything, so it’s important to understand your options, and consider additional insurance for full protection.

Valuation Coverage: The Basics

When planning a move, protecting your belongings is a top priority. One of the most important (and misunderstood) protections available is valuation coverage,  often confused with traditional insurance. Understanding how valuation works, what it covers, and your options as a customer is crucial to making informed decisions.

In this post, we’ll explain the basics of valuation coverage, including the two types required by law, what is and isn’t covered, and how to choose the right level of liability for your needs.

What Is Valuation Coverage?

Valuation coverage refers to the level of liability a moving company agrees to assume if your belongings are damaged, lost, or destroyed during your move. It's not technically insurance, but it functions similarly by offering reimbursement, within limits, if something goes wrong.

When you sign your moving contract, you’ll be asked to choose a level of valuation. The amount the moving company is responsible for depends on the type of coverage you select. This is why understanding your options is so important, especially if you’re moving long distance and want peace of mind.

Valuation Coverage vs. Moving Insurance

Though the terms are often used interchangeably, valuation coverage is not the same as third-party moving insurance.

• • Valuation coverage is provided by the mover and regulated by the federal government (for interstate moves).
  • Moving insurance is purchased separately through a licensed insurance provider.

Valuation covers only specific situations and typically provides more limited reimbursement than insurance. However, it’s included or available through your mover, making it the most common option.

What Valuation Coverage Does NOT Cover

Many people are surprised to learn that valuation coverage comes with a number of limitations. Movers are not responsible for every type of damage. The following are not covered:

• • Boxes you pack yourself – If an item is damaged in a box you packed, it may be harder to prove liability.
  • Acts of nature – Events like hurricanes, floods, or earthquakes fall outside mover liability.
  • Delayed claims – Damage must be reported promptly. Waiting too long may void your claim.
  • Hazardous or perishable items – If you pack these without the mover’s knowledge, coverage doesn’t apply.

It’s important to read your contract carefully and ask questions. The more you understand the limits of valuation, the better prepared you'll be.

Types of Valuation Coverage

For interstate moves, the Federal Motor Carrier Safety Administration (FMCSA) requires moving companies to offer two types of valuation coverage:

1. Released Value Protection

Released Value Protection is the most basic level of liability, and it’s included at no extra charge. But it offers minimal protection.

Coverage: 60 cents per pound per item

Example: If your 40-pound television is damaged, you’ll receive only $24 (40 lbs. x $0.60)
This option is economical but risky, especially for valuable or fragile items. It may be suitable for items with low value, but you should carefully consider whether it’s enough protection for your needs.

2. Full Value Protection

Full Value Protection offers more comprehensive coverage. While it typically comes at an additional cost, it provides significantly better reimbursement if an item is lost, damaged, or destroyed.

Coverage: The mover is liable for the current (depreciated) market value of the item.
Repair or Replacement: The mover can choose to repair the item, replace it with something of comparable value, or pay the depreciated value in cash.

This option gives you peace of mind and is ideal for high-value items like electronics, furniture, and artwork. Just be aware that some exclusions and deductibles may apply, depending on your mover’s policy.

Choosing the Right Valuation Coverage

When deciding between valuation options, consider the following:

• • Item value: Are you moving expensive furniture, electronics, or heirlooms?
  • Risk tolerance: How comfortable are you accepting the minimum reimbursement?
  • Budget: Full Value Protection costs more but can save money in the long run if damage occurs.
  • Professional guidance: Speak with your moving company about what makes the most sense for your situation.

A reputable mover will walk you through your options and help you understand what’s covered and what isn’t. At Verity Van Lines, we believe transparency is key, and we’re always happy to explain your valuation choices.

Can I Purchase Additional Insurance?

Yes. If you’re concerned that valuation coverage won’t be enough, consider purchasing third-party moving insurance. These policies are offered by independent insurance companies and can be tailored to your needs, often covering things that valuation does not.

Be sure to review the policy carefully and ask if the insurer has experience with household goods moves.

Final Thoughts: Valuation Coverage Matters

Understanding your options for valuation coverage is an essential part of planning a safe and stress-free move. While it’s not a perfect substitute for full insurance, it offers important protections, especially when you know how to choose wisely.

Before signing any contract, take the time to:

• • Review all valuation coverage levels
  • Ask your mover for clarification
  • Decide what’s right based on the value of your items

By being informed, you can help ensure your belongings, and your peace of mind, are well protected throughout the moving process.

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