Welcome to the first installment of our two-part series on the claims process. Today, we will discuss valuation and in the next installment we will discuss the claims timeline for each move.
Understanding valuation can be challenging so we would like to provide information to make it easier to make a decision. First and most importantly, movers are not authorized to sell insurance. By federal law, movers are only allowed to sell valuation. Secondly, valuation coverage is there to help protect the customer’s belongings during the move process.
What is Valuation?
Very specifically, valuation is the predetermined limit of liability that a mover has for the customer’s property while in the mover’s possession. In other words, it’s coverage for the customer’s belongings while those items are with the movers. Valuation covers your belongings at all points in the move process.
Are there different types of Valuation?
By law, movers have to offer Full Value Protection (FVP). With FVP the customer is covered by a $6/lb. minimum. This means if the shipment weighs 10,000 pounds then the customer will receive $60,000 worth of coverage. If the customer thinks the value of their goods is more than $6/lb. then they can buy more coverage if they’d like. Unlike the Carrier Standard, there is an additional charge with FVP.
Customers do not have to choose FVP and instead can opt for the Carrier Standard. There is no charge for this coverage. With this option, during local moves, each article is covered at 60 cents per pound or $50 per article, whichever is less. With this option, during long distance moves (intra- and interstate), each article is covered at 60 cents per pound. This means, if an item weighs 50 pounds and is damaged, the customer will only receive $30. (We strongly recommend choosing FVP.)
How Does Valuation Help the Customer?
With FVP, the moving company is 100 percent liable — the moving company will replace your item with a like or kind replacement, or fix the damaged item. If a customer chose the Carrier Standard, the moving company is only liable for 60 cents per pound. FVP simply offers more protection for the unexpected.
If you have questions regarding valuation please contact your certified move consultant or leave a comment below.
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