Valuation coverage is not insurance. It is the level of liability a moving company assumes for your belongings under federal law. All interstate movers must offer two types: Released Value Protection (free, minimal) and Full Value Protection (comprehensive, additional cost). Understanding the difference before your move can save you thousands of dollars in uncovered losses.
Important: Valuation coverage and moving insurance are legally and practically different. "Full Coverage" offered by a mover is not the same as an insurance policy from a licensed insurer.
Released Value
$0.60 per pound — free but minimal protection
Full Value Protection
Repair, replace, or pay current market value
Third-Party Insurance
Separate policy — covers gaps that valuation misses
Under federal law (49 U.S.C. § 14706, the Carmack Amendment), interstate moving companies are liable for the loss or damage of items they transport. The specific amount of liability is determined by the type of valuation coverage selected before the move.
Valuation is not an insurance policy. The mover does not purchase coverage from an insurer on your behalf. Instead, they accept a defined level of financial responsibility as part of your moving contract. If something goes wrong, the mover — not an insurance company — is the one paying the claim.
The key distinction
An insurance policy is regulated by state insurance commissions, backed by a licensed insurer, and subject to specific claims processes. Valuation coverage is a contractual liability governed by federal transportation law. The two are complementary — not interchangeable.
Released Value Protection is automatically included in every interstate move at no additional charge. The mover's liability is limited to $0.60 per pound per article — regardless of the item's actual value.
Example claim calculation
65-inch OLED TV (market value: $2,400) — damaged beyond repair
Weight: ~65 lbs × $0.60 = $39.00 payout
Loss: $2,361
Released Value Protection is the default if no other option is selected in writing. Customers must sign a statement acknowledging their choice — movers cannot assign it without explicit consent.
Full Value Protection requires the mover to take one of three actions for any lost or damaged item:
Full Value Protection typically costs between $50 and $200 or more depending on the total declared value of the shipment and the deductible chosen. Moving companies may offer different deductible levels — higher deductibles generally mean lower premiums.
High-value items (artwork, jewelry, antiques, electronics) must be declared separately if their individual value exceeds $100 per pound. Without a high-value declaration, the mover's liability for those items may be capped.
| Factor | Valuation (Mover Liability) | Third-Party Insurance |
|---|---|---|
| Who pays? | The moving company | A licensed insurer |
| Regulated by | FMCSA (federal) | State insurance commissioner |
| Cost | Free (released) or added fee (full value) | Separate premium |
| Covers self-packed items? | Limited / typically excluded | Varies by policy |
| Covers acts of God? | No | Often yes |
| Claims process | Directly with the mover | Through insurer |
| Required by federal law? | Must be offered | Optional |
Items packed by the owner (PBO) — movers are generally not liable for breakage in customer-packed boxes unless the carton is crushed
Mechanical or electrical derangement in electronics (unless visible external damage is present)
Antiques, items of extraordinary value, or highly fragile items not declared in advance
Acts of God, such as flooding, earthquake, or storm damage
Damage caused by improper packaging by the owner
Document damage at delivery
Note all visible damage on the Bill of Lading before signing. Take photographs. Never sign a damage-free delivery receipt if items are damaged.
Submit a written claim within 9 months
Federal regulations require claims to be filed within 9 months of delivery for interstate moves. Submit in writing to the mover's claims department.
Allow the mover to respond
The mover has 30 days to acknowledge receipt of your claim and 120 days to settle or deny it.
Dispute unresolved claims
If the mover denies or underpays your claim, you can pursue arbitration through the mover's arbitration program (required by FMCSA for claims under $10,000) or file a complaint with FMCSA.
Clear communication about valuation options is both a legal requirement and a trust builder. Moving companies must present both options in writing before the move and obtain signed acknowledgment of the customer's choice.
DriveSales customer portal gives customers a dedicated space to review their estimate, coverage options, and move details before signing. This reduces day-of disputes and ensures the paperwork is complete.
$0.60
Per pound per article — the maximum a mover owes under Released Value Protection. A 65 lb TV pays out $39.
Check your existing coverage
Some homeowner's and renter's insurance policies include off-premises coverage for items in transit. Check your policy before purchasing additional valuation or third-party insurance.
Answers to common questions from customers and moving company owners.
DriveSales customer portal lets customers review coverage options, sign documents, and track their move — all in one place. Less confusion, fewer disputes.