You say Insurance, we say Valuation

Movers are not allowed to sell insurance.  Instead, if you want to insure your belongings against loss and damage for your interstate move you are talking about valuation.

The simple explanation on valuation is that you have two choices – accept the free valuation the mover offers or purchase full valuation protection valuation.   What’s the difference?

The free valuation is based on 60 cents per pound per article.  Per article means just that, for each item (or article) that is lost or damaged by the mover during the interstate move you will be compensated based on its weight.  So if you have a new flat screen TV and its damaged beyond repair, based on its weight of 10 pounds let’s say, then you will receive 60 cents times the 10 pounds or $6.00.  That is the amount your mover is obligated to pay you under the 60 cents per pound per article free  valuation.   The less your item weighs the less you will be reimbursed by the free valuation.

The other type of valuation is called Full Value Protection or FVP.

Under the FVP, articles that are lost, damaged or destroyed must be (at the mover’s option) either repaired, replaced with like items, or a cash settlement will be made for the current market replacement value, regardless of the age of the lost or damaged item.  Depreciation of the lost or damaged item is not a factor in determining replacement value when the shipment is moved under full value protection.

The cost of this type of valuation is based on the weight of your shipment and will depend on whether you select $0, $250 or $500 deductible.  The higher the deductible amount the lower your cost to purchase the valuation.  It works just like your car insurance where the deductible level amount is deducted from the reimbursement you receive back as a result of loss or damage.  Your mover will tell you the cost to purchase the FVP at the various levels of deductible for your shipment.

That’s the condensed explanation of valuation… how it works and what you get reimbursed.