When you sign a contract with any moving company, you are committing your most valuable possessions into their care. While the vast majority of moves go smoothly, it is critical to understand what happens if an item is lost or damaged.
The moving industry uses two very specific terms that are often misunderstood: Valuation and Insurance. They are not the same, and knowing the difference can save you significant financial heartache later.
1. Mover Valuation: Not Insurance, But Liability
“Valuation” is not insurance. It is the legally required amount of liability that a moving company assumes for the value of your goods. Federal regulations require movers to offer two distinct levels of valuation.
A. Released Value (Basic Protection) – The Default Option
- Cost to You: This is typically offered at no additional charge.
- Liability Limit: The mover’s liability is limited to $0.60 per pound, per article.
- How it Works: If your 100-pound television is damaged, the maximum liability the mover has is $60 (100 lbs x $0.60). This is regardless of the item’s age or original purchase price.
- Key Takeaway: Released Value is the most basic coverage and is suitable only for items with little monetary value. It is insufficient protection for nearly every household move.
B. Full Value Protection (Recommended Mover Protection)
- Cost to You: This involves an extra charge and is highly recommended by movers.
- Liability Limit: The mover is liable for the replacement cost value of any item that is damaged, lost, or destroyed, up to the total value of your shipment.
- How it Works: If your TV is damaged, the mover is liable to either repair it, replace it with a similar new item, or offer a cash settlement for the item’s current market value.
- Deductibles: Like car insurance, you can often select a deductible ($0, $250, $500, etc.) to lower the upfront cost of this valuation.
2. Third-Party Moving Insurance: True Coverage
True “moving insurance” is purchased separately from a licensed insurance provider (a third party) that specializes in moving and relocation. This is the only type of coverage that legally qualifies as insurance.
Key Characteristics:
- Scope: Third-party insurance generally covers everything based on the policy you purchase, including potential catastrophic losses that might exceed your mover’s valuation limits.
- How it Works: The policy is a contract between you and the insurance company. You file a claim directly with the insurer, who then pays you based on the terms of your policy (usually replacement value).
- Your Homeowner’s Policy: Crucial Note: Most homeowner’s or renter’s insurance policies do not cover damage that occurs while the goods are in transit or in the possession of a professional mover. Always verify your policy with your agent.
Which Protection is Right for Your Move?
| Scenario | Recommended Protection | Why |
| Average Local Move | Full Value Protection (with a deductible) | Offers replacement value for most items at a reasonable cost and handles claims directly with the mover. |
| High-Value Items | Full Value Protection PLUS Third-Party Insurance | Provides maximum coverage for irreplaceable items (fine art, antiques, high-end electronics) that may exceed the limits of the mover’s FVP policy. |
| Budget-Only Move | Released Value (Not Recommended) | Only use this option if your possessions are not valuable and you understand the minimal liability risk. |
Don’t let confusion about liability turn a damaged item into a financial loss. By clearly understanding the difference between the mover’s valuation options and external insurance coverage, you can choose the level of protection that gives you peace of mind.
Ready to get a detailed quote that includes full protection options?
📞 407-819-0886
🚛 https://www.miraclemoversfla.com/free-quote/
