Liability vs. Valuation Coverage in Moving Accidents

You’ve packed your boxes, hired movers, and you’re ready to go. But what if something gets damaged along the way? Accidents happen—and when they do, the type of protection you have can make all the difference. That’s why it’s important to understand the difference between liability coverage and valuation coverage, two terms that often come up when planning a move.

While they may sound similar, these forms of protection determine how much you’ll be compensated if your belongings are damaged or lost. In this guide, we’ll break down what liability and valuation coverage really mean, what moving companies typically offer, and how to decide whether you need extra protection.

What Is Liability Coverage?

Liability coverage—also known as released value protection—is the minimum level of protection that moving companies must provide, particularly for interstate moves, where it’s required by federal law.

This coverage compensates you based on the weight of the damaged or lost item, not its actual value. For example, you’ll typically receive $0.60 per pound per item. So, if your 30-pound flat-screen TV is damaged during the move, you’d receive just $18.

Liability coverage comes at no additional cost, but it offers minimal protection and rarely reflects the true value of modern electronics, furniture, or personal belongings. That’s especially risky during long-distance moves, which involve more handling and higher chances of damage. So, if you’re planning a move across states, it’s worth understanding the financial risks of interstate relocation before you choose your coverage level.

Understanding Valuation Coverage

Valuation coverage isn’t technically insurance, but it functions similarly. Instead of basing reimbursement on weight, valuation coverage compensates you based on the declared or actual value of the item.

There are two main types:

• Full Value Protection (FVP): The mover is responsible for either repairing the item, replacing it with one of equal value, or compensating you for the current replacement cost.
• Declared Value Protection: Compensation is based on the total weight of your shipment multiplied by a set rate (usually around $6 per pound). It offers more than basic liability but less than FVP.

Valuation coverage typically costs extra, but it can provide peace of mind—especially if you’re moving high-value items or relocating across long distances.

What’s Included in a Standard Moving Policy?

Many people assume full protection is included when they hire a moving company. In reality, most standard policies only include basic liability.

Unless you request otherwise, movers are only responsible for the minimum compensation set by federal or state law. Here’s what’s typically included or excluded:

Included by default:

• Released value protection (liability at $0.60/lb per item)
• Limited responsibility for items packed by the movers

Not usually covered:

• Boxes packed by you
• High-value items not declared in writing
• Damage from natural disasters or uncontrollable events
• Specialty or delicate items unless pre-arranged

This is why reviewing your contract and asking the right questions is crucial. Don’t assume your belongings are protected just because you’ve hired professionals.

Should You Buy Additional Coverage?

Whether extra coverage is worth it depends on a few factors:

• What are you moving? If you’re transporting valuable items like electronics, antiques, or custom furniture, basic liability won’t cut it.
• How far are you moving? The longer the move, the more risk of damage. Interstate or cross-country moves involve more handling and potential for issues.
• Do you already have insurance? Some homeowners or renters insurance may offer limited coverage during a move, but it usually won’t cover everything. It’s worth checking with your provider.

If your mover’s valuation options feel restrictive, you can also look into third-party moving insurance, which may provide greater flexibility and tailored protection.

Final Tips Before You Decide

Moving is stressful enough without the worry of what might happen to your belongings. Understanding the difference between liability and valuation coverage helps you make a more informed decision.

• Liability coverage is suitable for short, low-risk moves with inexpensive items.
• Valuation coverage is the better choice for valuable items and long-distance relocations.

Before you sign any paperwork, take inventory, review the terms, and ask your moving company detailed questions about your protection. That way, if something does go wrong, you’ll know exactly what to expect—and won’t be caught off guard.