On moving day, movers will offer you between two valuation options to choose from in order to protect your items.
The Released Value actually provides no real protection to your items. Under this option, movers will assume liability for your household items for no more than 60 cents per pound per item.
Now, let’s do the math! If your movers destroy a TV that costs $3000 and weighs 80 lbs., as reimbursement you’ll get $0.60 x 80 lbs.
This is the most frugal “protection” available, as it is offered free of charge. However, the protection is minimal. This plan compensates you according to the weight of your items, and not their actual value.
You should think very carefully before agreeing to this option.
Generally, if you do not choose the Released Value, your shipment will automatically be transported at the Full Value Protection plan and you will be charged for this option.
Full Value Protection
This is the most comprehensive plan you can choose to protect your items, although it will increase your moving costs. Under the Full Value Protection, in case of any item got lost, destroyed or damaged while in your mover’s custody, mover is obliged to repair the item, replace the item with a similar one or make a cash settlement for the cost of the repair or the current market replacement value.
The exact cost of this plan may vary by mover and may be subject to different deductible levels that may reduce your overall cost.
The minimum rate for determining the Full Value Protection is $6.00 per pound times the weight of your shipment. However, your mover may have a higher minimum rate. The charges that apply for providing FVP must be designated in your mover’s tariff.
Mind that under this option, movers are allowed to limit their liability for loss or damage to items of extraordinary value, unless those items are listed on the shipping documents.
Have in mind that it is your responsibility to study and understand the provisions of both plans. Choose wisely.