Full Value Protection is a comprehensive coverage option offered by your moving company to safeguard your belongings in the event of damage during the move up to the declared value of the items. It’s essential to note that it’s not an insurance policy in the traditional sense, as it doesn’t rely on proving negligence to cover your losses. Instead, it’s based on the weight of your entire shipment and it reflects the monetary value of that responsibility. An insurance is a different legal contract with different policy terms depending on the providers and it needs to be discussed directly with them.
1. Declaration Of Value
When you hire a moving company, you'll have the option to declare the value of your belongings for insurance purposes. This declared value represents the maximum amount that the moving company will be liable to pay in the event of loss or damage.
2. Coverage
With Full Value Protection, moving company is required to either repair, replace, or compensate you for any items that are lost, damaged, or destroyed during the move. This coverage applies to all items included in your shipment, regardless of their value or condition.
3. Cost
Full Value Protection typically incurs an additional cost, which is based on the declared value of your shipment. The cost of Full Value Protection may vary depending on the weight of your shipment.
4. Limitations and Exclusions
It's important to review the terms and conditions of your Full Value Protection policy carefully, as there may be limitations or exclusions that apply. For example, certain high-value items may have specific coverage limits, and certain types of damage may not be covered.
1. Full Value Protection is acquired directly from your moving company, while insurance is obtained separately from a third-party insurer
2. The cost of Full Value Protection can fluctuate based on the value of your possessions and the deductible you select.
3. In terms of coverage, with Full Value Protection, you are insured for the declared value of your shipment up to a specified limit, typically determined by the weight of your items and subject to a deductible. This coverage is applicable solely to damage or loss caused by the moving company.
Selecting Full Value Protection (FVP) when moving is essential for heightened protection and financial reassurance. FVP guarantees that the moving company assumes responsibility for replacing or repairing any damaged or lost items based on their current market value.
How Full Value Protection is Calculated?
If any article is lost, destroyed or damaged while in your movers custody your mover will either 1) repair the article to the extent necessary to restore it to the same condition as when it was received by your mover, or pay you the cost of such repairs; or 2) replace the article with an article of like kind and quality, or pay you for the cost of such a replacement. An additional charge applies for this option. Please ask your move coordinator for the price.
Under this option, the mover assumes liability for no more than $6 per pound per article for loss or damage. This means that claims are settled based on the weight of the article(s) multiplied by $6 per pound. For example, if a 150 pound stereo component valued at $1000 were lost or destroyed, your mover would be liable for no more than $900 (150 pound multiplied by $6)
Note - Extraordinary value articles under either the two options described above, your mover is also permitted to limit its liability for loss or damage to articles that have an extraordinary value, unless you specifically list these articles on the shipping documents. An article of extraordinary value is any item who's value exceeds $100 per pound.
Your Deductibles
Selecting your deductible is typically necessary to determine the extent of your coverage under full value protection. The deductible signifies your initial payment out-of-pocket before coverage takes effect. Essentially, it represents the initial financial obligation you bear when initiating a claim.
The deductible amount varies depending on the value of your belongings. It's crucial to recognize that the choice of deductible can directly influence the premium cost. Opting for a higher deductible means you're agreeing to assume a larger portion of the cost in the event of a claim. As you are assuming more financial responsibility upfront, your moving company generally levies a lower premium for your coverage. In essence, your payment for the coverage will be reduced.
Not Included In Full Value Protection
Valuation coverage excludes items packed by the customer and does not extend to compressed wood items. Moreover, it does not provide protection against natural calamities such as fire, hurricanes, tornadoes, windstorms, or hail.
Additionally, items damaged while in storage, not under the moving company's control, remain uncovered. This includes items not listed on the inventory form, for which the customer needs to declare value.
What is Limited Liability Insurance (Free Coverage)
If you decide against opting for Full Value Protection coverage, you'll automatically be enrolled in Limited Coverage Liability, commonly known as “60 cents per pound” coverage. This basic protection offers limited reimbursement based on the weight of your items in case of loss or damage during the move. It's suitable for low-value items and doesn't involve any extra expenses.
For example, if a 10-pound item is damaged during the move, you would receive $6.00, calculated at 60 cents per pound, for its replacement.
Limited Liability, also referred to as “Free Coverage” adheres to the minimum requirements mandated by the Department of Transportation and U.S. Federal Law. While this protection doesn't come with additional charges, you must acknowledge acceptance by signing for it on the Bill of Lading.
Full Value Protection offers a high level of protection and peace of mind during a move, ensuring that you are fully compensated in the event of any loss or damage to your belongings. If you're concerned about the safety and security of your items during a move, Full Value Protection may be a worthwhile investment to consider
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