Moving Valuation: Released Value vs Full Value Protection
On an interstate move your mover is liable for loss or damage at one of two levels. Full Value Protection is the default and means repair or replacement. Waiving it in writing caps recovery at 60 cents per pound per article, which the rights booklet calls minimal protection.
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What valuation means
Valuation is the amount your mover is responsible for if your belongings are lost, damaged or destroyed. It is not insurance in the usual sense, and it is not decided by what you feel your things are worth. It is a choice you make on a specific form, between two levels of liability set by federal rules for interstate household goods carriers. This guide explains both, using the text of Part 375 and the rights booklet that it reprints as its Appendix A. Part 375 covers interstate moves, so for a local move ask the company in writing what its liability terms are.
The default: Full Value Protection
Section 375.201 says that, in general, a mover is legally liable for loss or damage that happens during the transportation and the related services named on the bill of lading. Its second paragraph sets the baseline: liability is for the replacement value of the goods that are lost, damaged, destroyed or not delivered, up to the declared value of the shipment. The booklet calls this Full Value Protection and says you get it unless you waive it in writing. The initial cost estimate you receive must include this level.
According to the booklet, if an article is lost, destroyed or damaged while in the mover's custody, the mover will, at its option, either repair it to the condition in which it was received, or pay the cost of the repair, or replace it with an article of like, kind and quality, or pay for the replacement. It adds that this option costs more than the basic transportation, that the charges must be in the mover's tariff, and that the cost may be subject to deductible levels. The minimum valuation for working out the cost of Full Value Protection is six dollars per pound times the weight of the shipment, though a mover may use a higher minimum, or you may declare a higher value at extra cost.
The alternative: released value
Section 375.201(c) says that if you waive the full value liability in writing, the mover is liable only to the extent of the Surface Transportation Board's released rates order. The booklet gives the figure as 60 cents per pound per article, and explains that this is minimal protection but costs nothing. Its own example: a ten-pound stereo component worth 1,000 dollars that is lost or destroyed would be covered for six dollars. The booklet adds, "you should think carefully before agreeing to such an arrangement."
The waiver has to be made in writing on the valuation statement. Section 375.505(b)(12) requires the bill of lading to carry the statement that has you either choose Full Value Protection or waive it in favor of the released rates. If you waive it, the mover must state any charge for optional valuation coverage other than Full Value Protection.
Side by side
| Question | Full Value Protection | Released value (waiver) |
|---|---|---|
| Is it the default? | Yes, unless waived in writing | No; you must waive in writing |
| What does the mover owe? | Repair or replace, or pay for either | No more than 60 cents per pound per article |
| Does it cost extra? | Yes; charges are in the tariff | No charge |
| Where is it shown? | Estimate and bill of lading | Valuation statement on the bill of lading |
Things that can reduce what you recover
The booklet lists four situations that can limit a mover's liability. The first is your own act or omission, such as packing your own boxes poorly or including perishable, dangerous or hazardous items without telling the mover (see also 375.203(a)). The second is choosing released value while shipping goods worth more than 60 cents per pound per article. The third is declaring a value below the actual value of the articles. The fourth is failing to notify the mover in writing of articles worth more than 100 dollars per pound. If you do list them, the booklet says you are entitled to full recovery up to the declared value, within the declared value of the whole shipment. Jewelry, silverware, china, furs, antiques and rugs are the booklet's examples of such articles. Ask the mover to explain this limit before the move.
Separate insurance
A mover may, but need not, offer separate third-party cargo liability insurance. If you buy it through your mover, the mover must give you a policy or written record at the time of purchase. Under 375.303(c)(5), failing to do so leaves the mover fully liable for claims. The booklet adds that disputes with third-party insurers are not subject to FMCSA regulations. Under 375.303(a), a mover may sell or arrange liability insurance only when you release the shipment at the 60-cent value, so that insurance is a different product from Full Value Protection. Ask exactly what it covers.
Worked example: a boxed set of dishes
Say a box holding a set of dishes is crushed. The box weighs 40 pounds and you value the contents at several hundred dollars. With released value, the mover's liability for that article is 60 cents times 40 pounds, which is 24 dollars, however much the dishes are worth. With Full Value Protection, the mover repairs or replaces the dishes with like, kind and quality, or pays that cost, within the declared value of the shipment. That gap is what the price of Full Value Protection buys. The weight and figure in this example are invented to show the arithmetic.
What to settle before you sign
Read the valuation statement line by line. Find out whether Full Value Protection is in your estimate and what it adds to the cost, and whether there is a deductible. List high-value articles in writing. Note the condition of each item on the inventory, since the booklet warns that your ability to recover may rest on those notations. If you decide to waive, do it deliberately and on paper. For a claim after the move, use the damage claim letter, and read about estimates in the binding versus non-binding guide. A homeowner's or renter's policy may also matter, so ask your insurer. This guide explains rules and is not legal advice.