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By Ryan Cox
Director, Allied Consumer Moving
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Moving Valuation Coverage: Cost & Factors to Consider

Relocating can be both exciting and daunting, especially when it comes to protecting the safety of your possessions. One crucial element of moving is purchasing moving valuation coverage; this provides protection for items lost, destroyed, or damaged during transit.

Valuation coverage should not be confused with insurance. While insurance involves contracts between an individual and an insurance company, valuation coverage is offered by moving companies in compliance with federal law and is designed to cover one's belongings in case of loss or damage - with two levels available: Released Value Protection and Full Value Protection. Each level provides differing degrees of protection depending on which option one chooses.

Before selecting the ideal moving valuation coverage, individuals should carefully weigh both costs and coverage offered by each option. Factors to take into account include shipment weight and value estimation as well as any extra special items which require extra protection. By thoroughly understanding their available options and costs, individuals can make informed decisions that best meet their moving needs while protecting their possessions.

Valuation Coverage: An Overview

Moving companies offer valuation coverage as a protection plan that helps safeguard the value of client belongings during a move and provides peace of mind during what can be a harrowing relocation experience.

The federal government mandates that interstate moving companies must provide two levels of cargo protection when moving household goods to their new residence. Basic Released Value Protection is offered without any additional cost and typically covers $0.60 per pound of belongings; although this option is economical, it may not be sufficient to cover a customer’s items in case of damage or loss.

Full Value Protection offers additional peace of mind by covering the actual value of client belongings being moved. This option ensures that movers are responsible for replacing lost or damaged items during transit; however, this coverage option is an additional cost.

When considering valuation coverage, it's essential to carefully weigh costs against the value and risks of your belongings and the potential risks associated with moving. Some important factors include the distance of travel, the type of items being moved, and previous experiences with particular moving companies.

Note that both basic and full valuation coverage options may become invalid if clients choose to pack their own belongings, as this increases the risk of damage during transit. To ensure adequate protection, clients should discuss packing options as well as any additional coverage with their moving company.

Valuation coverage is an essential consideration when planning to move, providing various levels of financial protection for clients' possessions. By carefully considering costs, coverage options, and individual needs when making this important decision, one can make an informed decision that suits their moving situation the best.

Moving Valuation Coverage

Under Full Value Protection (FVP), your moving company is responsible for replacing any lost or damaged items within your shipment at replacement value should anything go amiss in transit - either through repair services, replacing them with similar ones, or providing cash compensation equal to their actual cash value at the time of the move.

Full Value Protection can provide your belongings with extra protection but comes at an extra cost.

Released Value Protection (RVP) is the basic valuation coverage mandated by federal law at no additional cost to you, yet only provides limited protection for your possessions. RVP only reimburses for damage sustained to items at an average rate of $0.60 per pound regardless of actual value, meaning if an expensive piece of furniture or electronics weighing 100 pounds were damaged due to RVP coverage, it would only reimburse up to $60 of its full replacement value.

Remember that although Released Value Protection is free, it may not provide sufficient protection for all your belongings. While its primary advantage is helping lower moving costs, for items that could prove hard or costly to replace or repair, it may be worth exploring Full Value Protection instead.

Full Value Protection and Released Value Protection offer different levels of coverage during a move, so take your own needs and circumstances into account when making your selection, taking both cost and level of protection into consideration when making your choice.

Cost Factors to Keep in Mind for Selecting Valuation Coverage

Factors Affecting Cost

The cost of moving valuation coverage varies based on various factors, including weight and value of your belongings as well as type of coverage selected. There are typically two options for moving valuation insurance: Released Value Protection and Full Value Protection - with Released Value Protection offering free coverage up to $0.60 per pound of belongings while Full Value Protection covers actual cash value at about 1% of their total worth for an annual fee.

Deductible levels also play an integral role in determining valuation coverage costs. A higher deductible may result in lower premiums; however, it also means you will cover more of any costs if damage or loss arises.

Economical Options for Coverage

For those in search of affordable coverage solutions, Released Value Protection could be an economical option. As federally mandated coverage provided free-of-charge provides basic protection for your belongings. But keep in mind this option only provides limited protection - $0.60 per pound per item- and may not provide sufficient funds in case of loss or damage, with amounts that won't fully replace or repair them.

Experienced in Dealing with High-Value Items

Items of Extraordinary Value

When moving, it is essential to take extra precaution when transporting items with extraordinary value, such as high-value possessionsthat exceed $100 per pound in value. In order to protect these valuable belongings in case of loss or damage during transit, discuss creating a high-value inventory form with your moving company for insurance purposes.

Proper packing and labeling play an invaluable role in protecting these priceless possessions. Use of appropriate labels - "fragile", "heavy", or even just "this side up" can help identify fragile or heavy objects as such, disassembling large ones if feasible and even double-boxing or custom crating could help safeguard fragile or delicate ones more effectively.

Separate Liability Coverage While federal law mandates basic released value coverage of $0.60 per pound of belongings, for higher-value items it might not provide sufficient protection. To secure more comprehensive protection and save yourself from liability claims when loss or damage does occur, opt for full value protection that covers their cash value in case of loss or damage.

However, keep in mind that moving companies can limit their liability for high-value items under full value protection policies. To ensure you receive adequate coverage for any extraordinary assets that need transporting, separate liability coverage might be worth purchasing from third-party insurers to help bridge the gap between their valuation and your actual possession's true worth.

Dealing with high-value items during a move requires careful planning and appropriate valuation coverage. Consult with your moving company about how best to secure these valuable possessions, and consider additional liability coverage as necessary - doing this can give you peace of mind during relocation.

Claims and Settlements in Case of Malpractice or Injury

Filing a Claim

When dealing with lost or damaged belongings during a move, it is vital to understand the process of filing a claim. First and foremost, report any damaged or missing items immediately to your moving company and inspect all items upon delivery for damages or discrepancies before signing delivery documents.

To file a claim with a moving company, first contact them and request a claim form. Be prepared to provide evidence of lost or damaged items like photographs and receipts along with an estimated value and weight for each one; doing this increases your chance of making a successful claim. Once submitted, they may conduct further investigation on your claim as well as ask for more details from you.

Reimbursement services will evaluate any damage based on documentation and valuation coverage provided, with compensation to claimants determined according to their coverage level, ensuring they receive appropriate amounts for any lost or damaged items.

Moving valuation coverage provides clients with financial protection during a move, ensuring their belongings are accounted for if lost or damaged during transportation. It's essential to fully comprehend each level of coverage to make an informed decision on which is appropriate to suit your unique situation.

Download the Allied Extra Care Protection PDF