You’re moving, you say? Congratulations! We’re so excited for you. You’re probably excited and just a wee bit stressed, too. Researching movers or looking over your moving service contract, you may be eyeing the term “moving valuation” and wondering what it means. On top of that unfamiliar phrase, you’ll find other new terms you might not understand, like “declared value” and “full replacement.”
What does all this mean for you, the person who’s hiring this moving service to transport your precious possessions to a new home? We’re here to answer that question, and explain to you the different types of moving valuation.
What Is Moving Valuation?
Moving valuation is coverage for the value of your possessions, and is a form of legal liability. Your moving service is required by federal law to be held liable for the value of the items they are moving for you. This is great news for you because, hey, accidents happen. If you get to your new place and you find that some of your possessions were damaged during the move, the damage is not your fault. Therefore, it makes sense that you should be compensated for your loss.
The tricky part of moving valuation, though, is that there are different types. The type determines how much and what kind of compensation you’ll receive for goods damaged during the move. And not all types of moving valuation have your best interest in mind.
Types Of Moving Valuation: Released Value VS Full-Value Replacement VS Declared Value
There are three main types of moving valuation. They are released value, full-value replacement, and declared value.
Under the first type, released value, the moving service will value your possessions at 60 cents per pound. Under this type, they will cover damages to goods up to their value under the 60 cents per pound rate.
Alternatively, you can choose full-value replacement coverage. Under this type, you determine the total value of your possessions and then pay the moving service 1 percent of that total. From there, the moving service decides how it’s going to settle with you if any of your items are damaged during the move. They will either a) repair the damaged item so that it reaches its original worth, or b) they will replace the item with one exactly like it. The caveat here is that the moving service, not you, decides which one they’ll do for you.
The third type of moving valuation is called declared value. This is an expanded type of coverage which you’ll have to ask your moving service if they offer. Through declared value, you determine the sum total of the value of your goods. After that, you still receive similar coverage as full-value replacement, meaning the moving service will replace, repair, or reimburse you for individual items that are damaged, or, if the full truck is lost, reimburse you for the total value.
Determine What Type Of Moving Valuation You Want BEFORE You Move
Only you can determine the full value of your possessions. Decide if you want the basic coverage – released value or full-value replacement – that your moving service is required by federal law to offer, or if you want to go a step up with declared value.
