What is the difference between full value protection and released value protection when it comes to moving valuation coverages?
All moving companies are required to carry a minimal amount of moving valuation coverage. At On the Move, ours is $.60 per pound, per article. So that says that if a 100 pound dresser were to be damaged, we would be liable for $60 on that dresser. Now, that is a depreciated coverage. Our basic coverage is $1.25, so ours actually doubles the minimum that the state says that we have to do there. That just says that, again, if that 100 pound item were to be damaged, the most that would be paid out is $125, so that’s your released value.
We also have replacement coverage. Replacement coverage says if an item is damaged, on the replacement, it does not matter what it weighs. It’s whatever it costs to repair, replace, or cash out at today’s market value. So that 100 pound dresser, if it were to be damaged beyond repair and it was a $500 dresser, we would pay out $500 on that.
Homeowner’s Policies
It’s much like when you ship something with UPS or FedEx. They’re going to ask you what the value of the items you’re sending are because they, again, have a release value. You decide on the coverage that you want. And we also, when we talk to people, we ask them to check with their homeowner’s policy. Homeowner’s policies may cover your goods while in transit, but a lot of times, there are some exclusions there. We just want to make sure that people understand what they have before they move and not after something happens
So replacement value and full value protection are the same thing?
Yes, basically. That’s true. You’re setting a value on your goods that is equivalent to $6 per pound. If you have 10,000 pounds of furniture, which is kind of an average for probably a 2000, 2500 square foot home, that means you would have about $60,000 coverage on everything. You can always take more than that if you need it, but that’s our baseline, $6 per pound.