Valuation vs. Insurance

What is valuation?

Valuation is NOT insurance. Valuation is the amount of liability a moving company will accept for the value of your goods if damaged or lost while in their possession. Valuation is limited to the moving company’s own coverage, and in many cases is $0.60lb per item.

The customer (shipper) must select one of the following options prior to the start of any packing or moving service. Option A & B can be selected the day of your relocation.

A. Standard Liability: The carrier is only responsible for $0.60 per pound per article. There is no charge for this option. (This option can be selected the day of your relocation)

In order to get compensated for the value of your shipment and not for its weight you must choose from the following two options:

B. Declared Lump Sum: The carrier is responsible for the current market value of your item(s) (depreciated value) minus a $250 deductible. For this option the shipper must declare the total of the shipment, with minimum of $1.25 per pound. The carrier’s total liability for loss or damage may not exceed the amount the shipper declares as the value of the shipment. The charge for this option (B) will be $10 PER $1000 valuation, with $250 deductible. Example: a shipper transporting 10,000 pounds must purchase coverage at a minimum of $12,000 ($1.25 per pound) with a rate of $10 per $1000 valuation; the charge for this will be $125.00. Carrier will apply depreciation to any claim made under this option.

*** The minimum declared shipment value under declared lump sum (option B), is $7000.00.

What is insurance?

Insurance is a system of protection against loss in which an individual agrees to pay a certain sum for guarantee that they will be compensated under stipulated conditions for any specified loss. It is a contact guaranteeing such protection.

Why should I purchase insurance instead of valuation?

There are many reasons to consider insurance instead of valuation:

  • In the case of our All Risk insurance type, insurance provides a Full Replacement Value coverage, meaning it will compensate for the replacement value of the damaged or lost item. Valuation will pay the Actual Cash Value of the item, meaning, the depreciated value only. In case of our Total Loss Only type, insurance will compensate the total insured amount, less the deductible. Valuations programs offer limited coverage and will not provide full compensation.-Insurance will offer protection against "Acts of God" (e.g. floods, tornadoes, lightning strikes, etc.) and will cover you specifically for the items listed on your contract at their replacement cost.
  • When buying insurance, you will receive an actual Certificate of Insurance from a leading insurance company as a proof for your coverage, rather than a note on your Bill Of Lading when purchasing the valuation.
  • When you purchase valuation, you purchase it from the vendor which provides you with the moving service. By purchasing actual insurance coverage, you are obtaining the service of an independent, third party insurance company.
  • Insurance will cover your household goods for a period of up to 90 days (depending on your choice of insurance carrier) while in transit or in storage, including when being hauled by a subcontracted carrier different from your original mover. In addition, you can extend your coverage by purchasing a Storage Extension so your coverage will not lapse while in storage. Valuation does not offer this coverage.
  • Our insurance offers coverage for Mechanical and Electrical Derangement and/or Pairs and Sets. Valuation does not.

You can purchase full coverage (insurance) for your upcoming move from our affiliate insurance company movinginsurance.com (AIG Company).