Released Value vs Full Value Protection Explained

The two ways a mover limits what it owes

When a mover loses or damages your belongings, how much you can recover depends on the liability level you agreed to before the move. There are two basic levels. Released value caps what the mover owes at a set amount per pound for each article. Full value protection makes the mover responsible for what it costs to replace the item.

Both are written into the bill of lading. If you have not read one yet, what to read on a bill of lading before you sign covers the rest of the document.

What the federal rules say for interstate moves

Moves that cross state lines fall under the Federal Motor Carrier Safety Administration's household goods rules in 49 CFR Part 375. They do not govern a move that stays inside Massachusetts, but they show the framework most movers and consumer guides use.

• A mover is legally liable for loss or damage that happens during the transportation and related services on your bill of lading.
• The baseline is full value protection: liability equal to the replacement value of the goods that are lost, damaged, destroyed or not delivered.
• Released rates apply only if you waive full value protection in writing. The mover's liability is then limited to the amount set in a Surface Transportation Board released rates order, which the carrier may adjust each year.
• The mover must disclose the limits of its liability to you in a clear and concise way.

Why released value can leave a gap

Released value is counted by weight per article, not by what the item is worth. A heavy, cheap bookcase and a light, expensive painting are treated by the same per-pound formula, so the painting can be covered for a small fraction of its value. That is the reason the choice deserves a few minutes of attention, even though the base level usually comes with the move.

Federal rules also single out very valuable articles. If an item is worth more than a set amount per pound, you have to tell the mover about it in writing to recover its declared value in full. If you own items like that, ask how the mover wants them listed.

What Massachusetts says for moves inside the state

The state's consumer guide for moves within Massachusetts describes a base rate on file with the Department of Public Utilities that limits what a mover owes per article, based on its weight. It notes that most movers let you declare a higher value, and suggests asking your mover whether that option is available. Mover tariffs filed with the DPU are public, so you can look up what a company has on file. That is why the bill of lading, not an assumption, tells you what you have.

Which federal or state rule applies depends on whether the move crosses a state line. If you are unsure, ask the mover in writing which rules its paperwork follows.

Insurance is a separate product

A mover's liability limit and an insurance policy are not the same thing. Under the federal rules, a mover may sell or arrange liability insurance only when you release the shipment at the lowest per-pound level, and it must hand you the policy or other evidence of the coverage. Your homeowner's or renter's policy may also cover goods in transit, so it is worth asking your insurer before you pay for anything extra.

Questions to ask before you choose

1. Which liability level does the bill of lading select, and is it the one you chose?
2. In plain terms, what would the mover pay for a lost or broken item of average weight, and for your most valuable one?
3. What would it cost to declare a higher value, and is there a deductible?
4. Are any items of unusual value listed in writing?
5. If insurance is offered, do you get the policy or written evidence of it?
6. What does your own homeowner's or renter's policy already cover?

Business owners can see the same questions applied to office and shop moves.

If something is damaged

The level you chose decides what you can recover, so keep your bill of lading and inventory. The steps for reporting a problem are in what to do if movers damage your belongings.

Moving on Cape Cod

Ask for the valuation options in writing before move day, so you can compare them at a table instead of on the driveway. For how local moves on Cape Cod are handled, or for the full overview, see our moving page. To ask about a move, request a quote or call (508) 400-5788 any time, 24 hours a day.

Common questions