Released Value vs Full Value Protection: What Movers Owe Customers
This is the coverage decision every interstate mover is legally required to put in front of the customer — and the one that generates the most disputes when a claim comes in. The confusion is understandable: "valuation" is not the same as "insurance," and released value versus full value protection is a federally defined choice about how much the mover owes the customer, not a policy the customer buys from an insurer. Here's how it works and how to handle it correctly.
Valuation is the mover's liability, not the customer's insurance
Start with the core concept. When a household goods carrier moves someone's belongings interstate, federal regulations require the mover to assume a level of liability for loss or damage. "Valuation" is the term for that liability level. It is provided by the mover — it is not third-party insurance and it is not your motor truck cargo policy. Customers choose the valuation level; the mover honors it.
The official consumer explanation lives at protectyourmove.gov, the FMCSA's consumer resource. As a mover, you're required to give customers this information and let them make an informed choice.
Released value protection: free, but 60 cents a pound
Released value protection is the no-additional-charge option. In exchange for costing the customer nothing, it limits the mover's liability to 60 cents per pound, per article. That's it.
The math is brutal for customers, and every mover should understand it well enough to explain it honestly:
- A 50-pound flat-screen TV: 50 × $0.60 = $30 of liability, no matter that it cost $1,200.
- A 10-pound laptop: 10 × $0.60 = $6.
- A 200-pound antique dresser: 200 × $0.60 = $120.
Because released value is calculated by weight, high-value-per-pound items (electronics, jewelry, art) are dramatically underprotected. Customers who choose it are effectively self-insuring the difference — which is fine, as long as they chose it knowingly and in writing.
Full value protection: repair, replace, or pay replacement value
Full value protection (FVP) is the more comprehensive option, and it costs the customer extra. Under FVP, if an article is lost, destroyed, or damaged, the mover is liable to do one of the following, generally at the mover's option:
- Repair the item to its condition before the move,
- Replace it with a like item, or
- Pay a cash settlement for the cost of repair or the current replacement value.
FVP is based on replacement value, not depreciated or per-pound value, which is why it actually protects the customer. A few important mechanics:
- The customer typically declares a total value for the shipment, often subject to a per-pound minimum valuation the mover sets.
- FVP can carry a deductible option that lowers the cost.
- For articles of extraordinary value (generally items worth more than roughly $100 per pound, such as jewelry, furs, and fine art), the customer usually must list them specifically on the inventory to be covered at full value. Undeclared high-value items can be capped.
Side-by-side
| Released value | Full value protection | |
|---|---|---|
| Cost to customer | Free | Added charge |
| Mover's liability | $0.60 / lb per article | Repair, replace, or replacement value |
| Basis | Weight | Declared / replacement value |
| High-value items | Severely underprotected | Covered if declared on inventory |
| Required to offer? | Yes (interstate) | Yes (interstate) |
How valuation and your cargo insurance interact
This is where movers must be careful. Valuation is your obligation to the customer. Motor truck cargo is your insurance protecting you. When a customer selects full value protection and files a claim, you owe them replacement value — and you'll want your cargo policy to respond so the payout doesn't come straight out of your pocket.
The danger: if you sell a lot of full value protection but carry thin cargo limits or unmatched exclusions, a large claim can exceed what your policy pays, leaving you owing the customer the difference. Your cargo limits and endorsements should be sized to the valuation exposure you actually take on. We break down the policy side in our guide to motor truck cargo limits and exclusions, and for a broader view see our overview of what movers legally need to operate.
Getting it right operationally
- Present both options clearly, in writing. The bill of lading and order for service should show the valuation choice, and the customer should sign it.
- Explain the 60-cent math honestly. Customers who understand released value rarely dispute a small payout later; those who don't will.
- Require declaration of extraordinary-value articles. Have the customer list high-value items on the inventory so both sides know what's protected.
- Match your cargo insurance to your valuation exposure. Don't sell full value protection you can't fully insure behind.
- Keep the paperwork. The signed valuation election is your best defense in a claim dispute.
Moving Insurance Pros is a division of Thrive Risk Management. We help movers align their customer valuation practices with cargo and liability coverage that actually protects the business.