Moving can be stressful, even when everything goes as planned. But when something gets damaged or lost during a move, the stress can quickly become overwhelming. That’s why it’s important to understand how moving valuation and claims work before you hire a moving company.
If you’ve been researching movers, you’ve likely come across phrases like “licensed and insured.” While that sounds reassuring, it doesn’t necessarily mean your belongings are fully protected. In most cases, these companies are referring to valuation coverage, which is very different from traditional insurance. Here’s what you need to know to make the right decision for your move.
What Is Moving Valuation?
Valuation refers to the amount of liability your moving company accepts in the event your belongings are lost or damaged during the move. It is not insurance, although it may offer a similar kind of financial protection depending on the level of coverage you choose.
Federal law requires all licensed interstate moving companies to offer two levels of valuation. These determine how much the company is obligated to pay you if something happens to your items.
Keep in mind that valuation is not a substitute for insurance. If you want full coverage, especially for expensive or irreplaceable items, you may need to purchase third-party moving insurance in addition to valuation.
Types of Moving Valuation
1. Released Value Protection (Free Basic Coverage)
This option comes included at no additional charge with your move. While it’s appealing because it’s free, the coverage it provides is very limited.
- Coverage amount: $0.60 per pound per item
- Example: If your 10-pound television is damaged, the mover is only responsible for $6.
- Best for: Customers on a strict budget who are not moving valuable belongings
Released value protection offers the bare minimum in terms of financial compensation. It might be suitable for a small move or inexpensive items, but it leaves you vulnerable to major losses if something valuable is broken or lost.
2. Full Value Protection (More Comprehensive, Additional Cost)
This upgraded option provides significantly better coverage. With full value protection, the moving company must repair, replace, or reimburse you for the current value of any item that is lost or damaged.
- Coverage amount: Based on a valuation of $6 per pound
- Cost: Typically 5 to 6 percent of your shipment’s total weight
- Example: A 10,000-pound shipment would have a maximum liability of $60,000
- Best for: Moves involving electronics, designer furniture, antiques, or high-value goods
This option gives you peace of mind, especially if your belongings are expensive or sentimental. However, be aware that movers may impose limits on specific high-value items unless you notify them in writing before the move.
What Is Not Covered by Valuation?
Valuation coverage comes with several exclusions and limitations, especially with the basic level. These are some common examples of what is typically not covered:
- Items packed by the customer: If you pack your own boxes and the contents are damaged, the mover may not accept responsibility.
- Acts of nature: Damage from floods, hurricanes, or other uncontrollable events is usually excluded.
- Internal electronic failure: If a device stops working after the move without any visible damage, it may not be eligible for reimbursement.
- Undeclared high-value items: These are not covered beyond a certain amount unless properly documented in advance.
Always ask for a written explanation of what the mover’s liability does and does not include.
Why Declaring High-Value Items Matters
If you are moving items worth more than $100 per pound, such as jewelry, collectibles, or original artwork, you need to declare their value in writing before the move. Otherwise, the mover’s liability will be limited, regardless of how valuable the item is.
For instance, if you have a sculpture that weighs 20 pounds and is worth $3,000, the company may only be responsible for a small portion of its value unless you declare it. Declaring high-value items helps ensure you receive fair compensation if anything goes wrong.
What About Moving Insurance?
Because valuation is limited, many people choose to purchase separate moving insurance for added peace of mind. These policies are offered by third-party insurers and often cover scenarios that valuation does not, including:
- Natural disasters
- Theft during storage
- Damage to fragile or specialty items
- Total loss of high-value items
Rates vary based on your total shipment value and the coverage selected. If you’re moving cross-country or transporting expensive belongings, this kind of insurance can be well worth the cost.
Does Homeowner’s or Renter’s Insurance Help?
Your existing insurance policies might offer some level of protection during a move. Some homeowners’ or renters’ policies include relocation coverage or offer an add-on rider for a small fee.
Before purchasing any coverage from your moving company, it’s a good idea to check with your insurance provider. You might already have enough protection, or you may be able to enhance your policy at a lower cost than third-party or mover-provided options.
How to File a Claim With a Moving Company
If your belongings are lost or damaged, you’ll need to file a claim to receive compensation. Here’s how to handle the process:
- Take inventory and photos: Before the move, document the condition of valuable items.
- Act quickly: You usually have up to nine months after delivery to submit a formal claim.
- Submit everything in writing: Provide a detailed description, photos, and receipts if possible.
- Follow up regularly: Reputable movers will guide you through the process, but if they don’t respond or try to delay, escalate your claim.
The more evidence you have, the easier it will be to prove your case and get reimbursed.
Is Moving Valuation Worth It?
That depends on the value of your belongings and your tolerance for risk. Here’s a quick breakdown:
- If you’re moving inexpensive items or don’t mind replacing a few things yourself, the free released value protection might be enough.
- If you have electronics, furniture, or family heirlooms, full value protection offers more security.
- If you’re moving expensive or fragile items, consider adding third-party insurance for the best coverage.
For most people, spending a bit more for additional coverage is a smart move that can prevent major financial loss.
Need Help? Contact Moving Proz
Still unsure which valuation option is right for you? Reach out to Moving Proz in Overland Park, Lawrence, Kansas City, or Denver. Our team is happy to explain your options, help you prepare your shipment properly, and ensure you feel confident from start to finish.