What Is Valuation Coverage in Moving?

What Is Valuation Coverage?

Valuation coverage is the mover’s financial liability for your belongings. For interstate moves in the U.S., movers registered with the Federal Motor Carrier Safety Administration (FMCSA) must offer their customers valuation options. They must share these options both in your estimate and in your bill of lading.

The valuation coverage that you select will determine how much the mover will pay if something is lost or damaged while they handle and transport your items. If you do not purchase separate moving insurance, valuation coverage is your primary protection against out-of-pocket risk if something goes wrong.

Your selection should be made before pickup and must be documented in the moving paperwork.

Released Value Protection (Basic Coverage)

Released value protection is the minimum coverage that movers offer for an interstate move. It usually doesn’t cost you anything extra, but any reimbursement is very unlikely to match up with the actual value of your household goods.

• Cost: Typically included in the base moving rate
• Coverage limit: Up to $0.60 per pound, per item, regardless of the item’s actual value
• How it works: The payout is based solely on weight and not on what the item is worth
• Best for: Low-value, easily replaceable items or very tight budgets

Full Value Protection (Comprehensive Coverage)

Full value protection (FVP) ensures that the mover is liable for the current market value of your items (up to the level you choose). You will pay an additional fee for this protection, but it provides more reasonable recovery funds if the unexpected happens.

• Cost: An extra fee based on your declared shipment value and the deductible you select
• Mover’s obligation: Repair the item, replace it with a comparable item, or provide a cash settlement for the current market value
• Declared value: Often set at a minimum of around $6 per pound of shipment weight, but you can declare more for higher-value shipments
• Deductibles: Many movers offer options such as $0, $250, or $500, which will influence your premium
• Best for: Shipments with moderate to high value, or any shipment where you want to be fairly compensated for covered losses

Key Features, Costs, and Coverage Limits

Use this side-by-side view to see how the two standard options, released and full value protection, stack up on cost and payout.

• Valuation coverage is the mover’s contractual liability for your goods. For interstate moves, it is governed by the FMCSA and does not require the mover to hold an insurance license.
• Moving insurance is a separate insurance policy sold by a licensed insurer or broker. It is regulated by state insurance departments and can cover scenarios that valuation coverage may exclude.

When To Consider Third-Party Moving Insurance

• You are transporting high-value items or collectibles such as artwork, jewelry, or designer furniture.
• You want protection from issues that valuation coverage usually excludes, such as natural disasters, mold, or mildew.
• You prefer a policy with detailed claim standards, defined deductibles, and the ability to select higher limits.

Interstate vs. Intrastate Rules

• Interstate valuation options are overseen by the FMCSA.
• Your mover must disclose valuation options for interstate shipments.
• Insurance products are regulated by state insurance departments, and policies can vary by state.

What’s Covered

In general, valuation covers any loss, destruction, or damage to household goods that occurs during the move. Any reimbursements or payouts are governed by the valuation coverage level you selected and the conditions in your contract.

With full value protection, the mover must repair, replace, or provide a cash settlement for covered items up to your declared value, minus any deductible. Your mover must outline the specifics of coverage and any limits in your estimate and bill of lading.

What’s Not Covered

Review your contract carefully before you choose a valuation level, as this will define exclusions and limits.

• Packed-by-owner (PBO): If there is no visible external damage to the carton, claims for internal damage may be denied or reduced if packing contributed to the damage.
• Extraordinary value items: Artwork, furs, jewelry, cash, or collectibles that are not specifically declared and documented may be excluded or capped under the mover’s rules.
• Acts of God (also called force majeure): Floods, earthquakes, tornadoes, and other natural disasters may be excluded.
• Pre-existing damage or wear and inherent vice: Items that are already damaged or unusually fragile may have limited recovery if they fail without external impact.
• Mechanical or electrical condition: Failure of electronics or appliances without external damage is commonly excluded.
• Concealed damage deadlines: Time limits apply for reporting hidden damage.

A simple inventory will also help with claims if you need to file later:

• Build an inventory list with estimated replacement costs for major items.
• Identify high-value or fragile items that might need special handling.

Factor in risk based on how and when you are moving:

• Distance and complexity: Long-haul or multi-stop routes add risks through increased handling and exposure
• Timing: A move during peak season can add delays
• Mover’s track record: Check FMCSA complaints and independent reviews to gauge reliability and claims handling

Questions To Ask Your Moving Company

Before you sign, ask questions and get everything in writing.

• Which valuation options do you offer, and what are the exact costs and deductibles for my shipment?
• What minimum declared value applies to full value protection, and can I raise it for specific items?
• How do you define high-value items, and what documentation do you require to fully cover them?
• What exclusions apply to owner-packed boxes and electronics, and how can I reduce those risks?
• What are the deadlines for reporting loss or damage and filing a claim in my contract?
• What is your process and timeline for repairs, replacements, and cash settlements on approved claims?
• Do you partner with any third-party insurers if I want broader protection than valuation provides?

1. Inspect on delivery. Note visible damage or missing items on the delivery receipt or inventory before signing. Keep copies and take photos immediately.
2. Notify your mover promptly. Most carriers require written notice and a claim form. For interstate shipments, you generally have up to nine months from delivery to file a written claim. Check your paperwork for exact terms.
3. Gather documentation:
   • Photos or video of damage, the packaging, and any affected rooms or surfaces
   • Serial numbers, model information, and receipts or appraisals if available
   • Inventory lists, valuation declarations, and any high-value inventory forms
   • Repair estimates from qualified technicians, if applicable
4. Submit the claim form and evidence. Keep proof of submission, such as email confirmations or tracking, and save all correspondence.
5. Know the timelines. For interstate shipments, movers generally must respond to a claim within 30 days and resolve it within 120 days of receipt.
6. Follow up and escalate if needed. If you disagree with the outcome, ask for reconsideration, use the mover’s dispute or arbitration program, or file complaints with FMCSA and your state’s consumer protection office. Legal claims under the Carmack Amendment have their own specific timelines. The Carmack Amendment governs carrier liability for interstate moves and sets standards for claims and litigation timelines.

• FMCSA: Your Rights and Responsibilities When You Move
• FMCSA: Protect Your Move
• Find your state insurance department with the National Association of Insurance Commissioners (NAIC)