Here is part two of our article on making the choice between full value and released value liability protection.
The Full Value Protection Option
As stipulated under the Full Value Protection liability option, your moving company is fully liable for the complete replacement value of any item within the total shipment inventory that is lost or damaged during the moving process. This is considered to be the more comprehensive liability coverage option available for safeguarding the full extent of your household items. Under the guidelines of this policy, the moving company will transport the entire inventory utilizing the Full Value Protection level of liability coverage, which means that any item is lost, destroyed or damaged in any way while in the moving company’s care, they will, based on their specific preference, propose to provide one of the following resolutions for the item in question. They will either repair the item, offer to replace it with a comparable item of corresponding value, or offer you a settlement equal to the expense for repairing the item or its replacement cost based on the present market pricing.
In addition, unless a certain item has been specifically designated by you as having an unusually high value, and it has been listed as such in the shipping manifest, the moving company is allowed to set a limit of their liability for any loss or damage to that item. This would include things such as jewelry, silver, china, furs, or items considered to be antiques, with a value that is greater than $100 for each pound of merchandise. It is very important to have the moving company representative provide a detailed description of the extent of these limitations of their liability coverage, in writing, well before the moving process is underway. Also, there will obviously be differences in cost for this type of liability protection depending on which moving company is considered, along with alternative choices for deductible levels and cost reductions. Again, acquiring complete, written descriptions of the Full Value Protection coverage options before the contract is finalized with your moving company is crucial.
The Released Value Protection Option
The Released Value Protection Option is considered to be the most reasonable type of liability protection available to the consumer, since it is typically provided by the moving company without additional charge. Bear in mind, however, that this type of liability protection is minimal in terms of valuation recovery, because the moving company accepts a level of liability that will not exceed 60 cents per pound for the items listed in your inventory. As an example, if the moving company you selected had lost or damaged a 20-pound flat screen computer monitor with a valuation of $800, you would only collect $12.00 towards its replacement (60 cents x 20 pounds).
As mentioned, there is no added cost involved with Released Value liability coverage option. Nevertheless, the consumer is obligated to sign an explicit statement on the moving company’s bill of lading or contract that indicates you agree to these terms. In other words, you will be compensated based on the specific weight of the item, and not its actual cost of replacement. In addition, if you did not specifically select the Released Value liability option, your belongings will be shipped at the Full Value Protection level of liability by the moving company automatically, and you will be billed for this higher level of coverage accordingly.