Valuation, Cargo Insurance and Customer Claims

Two federal valuation levels

For interstate moves, movers must offer full value protection and may also offer released value, a lower level that customers can choose by signing a waiver. Under released value the mover's liability is limited to a set amount per pound per article. Under full value protection the mover is liable to repair, replace or pay for lost or damaged items.

Valuation is not insurance

Valuation describes the mover's liability to the customer. The mover's cargo insurance then responds to that liability, subject to its own limits, deductibles and exclusions. If a customer chose full value protection on an expensive shipment, check that your cargo limit is high enough.

Where the rules come from

Federal consumer protection rules for interstate household goods moves are in 49 CFR Part 375. Section 375.201 sets out the mover's liability for loss and damage and the two valuation levels. Full value protection is the default; released value applies only if the customer waives full value protection in writing on the order for service and the bill of lading. Movers must also give customers FMCSA's booklet, Your Rights and Responsibilities When You Move, and offer a neutral arbitration program for loss and damage disputes.

Claim handling is governed by 49 CFR Part 370. A mover has to acknowledge a written claim within 30 days and pay, decline or make a firm compromise offer within 120 days, with written status updates if it needs more time.

How each level plays out on a claim

Under released value, the mover's liability is capped at a fixed amount per pound per article, so a light but expensive item may be worth very little in a claim. Customers who chose released value often feel surprised by the payment, which is why clear paperwork matters.

Under full value protection, the mover must repair the item, replace it with a similar one, or pay its current market replacement value, subject to any limits allowed in the tariff for items of extraordinary value that the customer did not list. Your tariff explains those terms.

Matching cargo coverage to valuation

• Compare the declared shipment value with your per-truck cargo limit
• Ask whether the policy covers goods at your warehouse or only in transit
• Check the deductible against the size of a typical claim
• Keep inventories and photos, which help both the customer claim and your insurance claim

Frequently asked questions