When you hire a licensed moving company, federal law requires them to offer you two types of liability coverage for your belongings. Most people sign the paperwork without understanding what they've agreed to — and they only find out what it means when a lamp arrives in pieces. Here's a plain-English breakdown of both options so you can make an informed choice before the truck pulls up.
Released Value Protection: The Default (and the Bare Minimum)
Released value protection is the no-additional-cost option included in virtually every moving contract. It sounds reassuring until you read the fine print: your belongings are covered at just $0.60 per pound per article. That means a 20-pound flat-screen television worth $800 would net you exactly $12 in a claim. The word "protection" is generous here. It is the legal floor, not a safety net.
Under federal regulations (49 CFR Part 375), movers are required to offer released value at no charge, and they are also required to explain what it actually covers. Many customers choose it simply because it costs nothing extra. If your belongings are modest or fully covered by another policy, that may be a reasonable call.
But if you own high-value furniture, electronics, art, or appliances, released value will almost certainly leave you short.
Full-Value Protection: What It Actually Covers
Full-value protection (sometimes called full replacement value) means the moving company is liable for the current market value of any item that is lost, damaged, or destroyed. If they break that same $800 television, they must repair it, replace it with an equivalent item, or pay you a cash settlement at current market value. That is a meaningfully different outcome.
Full-value protection comes at an additional cost — the amount varies by carrier and by the declared value of your shipment. You may also be able to raise or lower your deductible to manage that cost. Some movers allow you to exclude items of extraordinary value, like jewelry or fine art, from coverage unless they are specifically listed on a high-value inventory form. Always ask.
Full-value protection covers repair, replacement, or cash settlement at market value. · You set a declared value for your shipment — usually a minimum dollar amount per pound. · Items over a certain value threshold may need to be listed separately. · Deductibles can often be adjusted to change your premium. · Released value stays at $0.60/lb regardless of what an item is worth.
What to Ask Before You Sign
Before your move, ask your moving company to walk you through both options in writing. Find out what the full-value premium will cost based on your shipment's declared value, whether there are excluded items or categories, and how the claims process works if something does go wrong. A reputable mover — like Bears Moving Co. — will answer these questions clearly without pressure.
Also check your homeowner's or renter's insurance policy before deciding. Some policies extend limited coverage to items in transit, which could reduce your exposure even if you opt for released value. More on that in the next post.
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