Protect Yourself – Valuation Options and What They Mean

Moving to a new home or office is an exciting step, but it’s essential to understand your protection options in case something goes wrong. Many consumers assume their belongings are fully insured when hiring a moving company, but standard coverage is often limited. Knowing your valuation options ensures you’re adequately protected.

Understanding Valuation

Valuation is the level of liability a moving company accepts for your belongings while in their care. It is not insurance but a predetermined coverage level set by federal and state regulations. In New Jersey, movers are required to provide a minimum legal liability of $1.00 per pound per article for intrastate moves.

Types of Valuation Coverage

1. Released Value Protection (Basic Coverage – No Additional Cost)

• This is the default coverage provided by moving companies at no extra cost.
• Under this option, the mover’s liability is limited to $1.00 per pound per article in New Jersey.
• Example: If a 50-pound TV is damaged, the mover’s liability is only $50, regardless of its actual value.
• This option offers minimal protection and may not be sufficient for high-value items.

2. Full Value Protection (Upgraded Coverage – Additional Cost)

• With Full Value Protection, the mover is responsible for either:
• Repairing the item
• Replacing it with a similar item
• Offering a cash settlement for its current market value
• The cost of this coverage varies based on the declared value of your shipment.
• This option provides significantly better coverage and is recommended for high-value moves.

3. Third-Party Insurance

• If you want additional coverage beyond what the mover offers, you can purchase separate moving insurance from a third-party provider.
• This can help protect expensive or sentimental items, especially for long-distance moves.

Which Option is Right for You?

• If you’re moving valuable furniture, electronics, or antiques, Full Value Protection or third-party insurance is a safer choice.
• If you’re comfortable with minimal coverage and have few expensive items, Released Value Protection might be sufficient.
• Always read your moving contract carefully and discuss valuation options with your mover before signing.

Final Tip:

Protecting your belongings starts with understanding your valuation options. Don’t assume all damages will be covered—know your rights and make an informed decision before moving day!

If you're considering a move, contact the New Jersey Warehouse and Movers Association at njmovers.com for expert advice and support. With the proper preparation and perspective, your move can be the best move you’ve ever made.

Blog Submission: Mike Egan, The Selzer Co., NJWMA Secretary and Insurance Chairman.