Understand the different types of moving valuation options before choosing a moving company
Moving company valuation methods differ even though they are regulated by consumer law.
Professional household goods movers must assume liability for the cargo they transport. The level of that liability is up to you. Most movers offer four liability levels, which will be reflected in their tariffs. While valuation is a form of financial protection, it is not, strictly speaking, insurance.
Released Value
This option offers you the least protection. The mover provides it at no additional cost. The terms of this arrangement are that the moving company assumes no more than 60 cents per pound per item in liability. This term must be precise and agreed to before you sign the Bill of Lading.
Declared Value
With this option, your shipment will be valued based on its total weight multiplied by $1.25 per pound. If you claim loss or damage, it is usually settled based on the depreciated value of the lost or damaged article(s) up to the maximum liability value as determined by the weight of the entire shipment.
The moving company can charge you $7.00 for each $1,000 (or a percentage thereof) of liability being assumed under a valuation form.
Ensure you understand that your shipment will be protected based on its depreciated value and that the mover can charge you a fee for this coverage.
Lump-Sum Value
Under the terms of this option, you may purchase additional liability protection from the mover. This entails declaring a total dollar value for the entire load.
Full Value Protection
Suppose you opt for this form of valuation. In that case, any lost or damaged articles must be repaired or replaced. If this is not possible, a negotiated cash settlement will be made. These reparations are made at the mover’s option and expense.
While declared and lump-sum valuations are based on depreciated values, complete value protection will obligate the mover to pay the current market replacement value.
The cost and terms of this form of valuation will vary; be sure you understand the specifics before you finalize your moving plan.
