Liability choices explained
Moving valuation: Full Value vs. Released Value
For a covered interstate move, Full Value Protection and Released Value are different levels of the mover's contractual liability. They are not interchangeable with a third-party insurance policy. Compare the written election, charge, declared value, deductible, tariff terms, and treatment of high-value articles before choosing.
The two interstate liability options
Full Value Protection
This is the default interstate liability level unless the shipper waives it in writing. Subject to allowable tariff terms, the mover chooses whether to repair the article, replace it with like kind and quality, or pay the cost of repair or replacement. It increases the move's cost. Source: Appendix A to 49 CFR Part 375, Full Value Protection.
Released Value
This no-charge option provides minimal protection. The mover's liability is no more than 60 cents per pound per article. Selecting it requires a written waiver of Full Value Protection on the required valuation statement. Source: Appendix A to 49 CFR Part 375, Waiver of Full Value Protection.
Valuation is not the same as insurance
FMCSA describes these options as contractual tariff levels of mover liability, not insurance agreements governed by state insurance laws. A separate third-party policy is a different product with its own premium, exclusions, limits, claim process, and regulator. Source: FMCSA, Before Requesting Services from Any Mover.
Compare more than the option name
| Feature | Full Value Protection | Released Value |
|---|---|---|
| Mover liability | Repair, replacement with like kind and quality, or payment for repair or replacement, at the mover's option and subject to tariff terms. | No more than $0.60 per pound per article. |
| Cost | An additional valuation charge shown under the mover's tariff; deductible options may apply. | No additional charge. |
| Shipment value | The federal booklet states $6.00 per pound times shipment weight. The STB order uses the higher of $6,000 or $6.00 per pound when no value is declared, permits optional indexing, and allows the shipper to declare a higher value. | Recovery is calculated article by article using that item's weight, not the shipment's declared replacement value. |
| How selected | Applies unless waived. | Requires the shipper's written waiver of Full Value Protection. |
The exact Full Value Protection charge and allowable terms come from the mover's tariff. Request the relevant tariff provisions and a written explanation of any deductible, repair procedure, replacement standard, and exclusions before signing. Source: Appendix A to 49 CFR Part 375.
Two calculations to understand
Assume a fictional interstate shipment weighs 5,000 pounds. The calculations below measure different things: the declared value of the whole shipment and the liability limit for one item. The shipment valuation is not a promised payment; neither calculation determines a claim outcome.
Full Value: the shipment's declared value
At the federal booklet's stated per-pound level, 5,000 pounds × $6.00 produces a $30,000 shipment valuation for calculating the Full Value Protection charge. That exceeds the STB order's $6,000 floor. A mover may apply authorized indexing, and the shipper may declare a higher value for an additional charge. If an article is damaged, the mover still applies the claim process and permissible tariff terms.
Released Value: the limit for one item
If a 50-pound television is lost or destroyed and the mover is liable, the maximum under Released Value is 50 × $0.60, or $30, even if the television's replacement cost is much higher. The formula is applied to that article's weight.
A quote that includes Full Value Protection is not directly comparable to one that uses Released Value. Put the valuation charge and election on their own row when comparing totals.
List articles worth more than $100 per pound
Under Full Value Protection, a mover may limit liability for an article of extraordinary value unless the shipper specifically lists it on the shipping documents. The federal booklet defines such an article as one worth more than $100 per pound and gives examples including jewelry, silverware, china, antiques, rugs, and computer software. Source: Appendix A to 49 CFR Part 375, Full Value Protection.
A five-pound item worth $2,000 is worth $400 per pound, so it crosses that federal threshold. Tell the mover in writing, identify the article on the required documents, keep proof of value and condition, and ask how its tariff treats that item. A declaration does not remove every tariff limitation or guarantee a particular claim result.
Where third-party insurance fits
A mover may offer to sell or procure separate third-party cargo liability insurance, but it is not required to do so. If the shipper buys that insurance through the mover, the mover must provide the policy or another written record of the purchase at the time of purchase. Disputes with a third-party insurer are not governed by FMCSA's household-goods claim rules. Source: Appendix A to 49 CFR Part 375, Third Party Insurance.
Do not assume a homeowners, renters, credit-card, or separate cargo policy covers a move. Ask the insurer directly about covered causes of loss, exclusions, deductibles, limits, geographic scope, storage, owner-packed boxes, high-value articles, and which policy pays first.
Questions to answer before making the election
- Which option is selected on the estimate and bill of lading?
- What shipment value, per-pound minimum, valuation charge, and deductible apply?
- What repair, replacement, cash-settlement, and matching-set terms appear in the tariff?
- Which articles exceed $100 per pound, and where are they declared?
- How are owner-packed goods, electronics, pre-existing damage, and storage treated?
- Is any separate insurance involved, who is the insurer, and where is the policy?
- What records and deadlines apply if an item is lost or damaged?
For an interstate shipment, the federal booklet states that a written loss or damage claim generally must be filed within nine months of delivery, or within nine months of the date delivery should have occurred if the entire shipment is lost. Preserve the inventory, condition notes, photographs, receipts, estimate, bill of lading, valuation election, and delivery documents. Source: Appendix A to 49 CFR Part 375, Loss and Damage Claims.