Released Value vs Full Value Protection: What Moving "Insurance" Actually Covers
TL;DR
Federal law calls it valuation, not insurance, and on every interstate household-goods move the carrier has to offer you two options. The default is Released Value Protection, which caps the mover's liability at 60 cents per pound per article under 49 CFR 375.701. A 50-pound television is worth $30 under that formula, regardless of what you paid for it. The alternative is Full Value Protection, which makes the mover liable for the full replacement value of any item lost or damaged, typically priced at roughly one to two percent of the declared value of the shipment. Both options must appear on the bill of lading, and the choice is yours to make in writing before the truck rolls.
Few moving terms confuse consumers more than "insurance." The word shows up in every quote, every contract rider, and every estimator's pitch, but the protection a moving carrier actually owes you is not insurance at all. The Federal Motor Carrier Safety Administration is unusually direct on this point in its consumer guide Your Rights and Responsibilities When You Move: "Valuation is not insurance; it is simply a tariff-based level of motor carrier liability."
That distinction matters because it controls how much you can recover when something arrives broken, damaged, or missing. It also determines which contract you fight over, which agency you file with, and which timetable governs your claim. If you took the default option without realizing it, your $1,500 television is worth $30. If you elected Full Value Protection, the same loss can be paid in full. This post explains both options in plain English, walks through real claim math, and shows what to look for on the bill of lading before you sign. It pairs with the binding vs non-binding estimate guide, because the two contract decisions sit on the same page and are usually made at the same time.
1. Valuation Is Not Insurance, and Why That Matters
When a household-goods carrier accepts your shipment, it accepts a level of liability for loss or damage that is set by federal regulation. That liability is what the industry calls valuation. It is defined inside the contract of carriage, governed by FMCSA under 49 CFR Part 375, and ultimately backed by the Carmack Amendment at 49 U.S.C. 14706, a federal statute that has governed carrier liability for damaged property for more than a century.
Insurance is a different animal entirely. Insurance is regulated state by state by insurance commissioners, sold by licensed insurance companies, and paid out based on the terms of an insurance policy you bought. A mover that does not have a separate insurance license cannot sell you insurance. What a mover can sell you, and is federally required to offer, is one of two valuation levels.
The practical consequence is the standard of recovery. Under valuation, you file a claim with the carrier, and the carrier decides between repair, replacement, or cash settlement, subject to the option you selected. Under a real insurance policy from a third-party insurer, you file with the insurer, and they pay you according to the policy. Mixing the two up at booking time is one of the most common ways a customer ends up surprised when something goes wrong.
2. Released Value Protection: the 60-Cent Default
Released Value Protection is the default. It is described in 49 CFR 375.701 and applies automatically unless you affirmatively select Full Value Protection in writing on the bill of lading. The headline number is simple. The carrier's liability is capped at 60 cents per pound, calculated for each lost or damaged article. It is not 60 cents per pound of the whole shipment, and it is not 60 cents per pound of the item plus its packaging. It is the actual weight of the article itself, multiplied by 0.60.
Released Value is included in the basic transportation charge at no additional cost. The cost-free part is the entire appeal of it. The problem is that the math is brutal once anything modern and electronic is involved. Modern televisions, laptops, and small appliances all share the property that their replacement cost is dramatically higher than their weight. The 60-cent formula was written into federal regulation long before that was the norm, and the rule has not moved with the market.
The crew drops a 50-pound flat-screen on the front walk during loading. You bought it eighteen months ago for $1,500, and the same model still retails for about that today. Under Released Value Protection the math is fixed: 50 lb × $0.60 = $30. The carrier owes you $30, and only $30. You bear the remaining $1,470 personally. The carrier is in full compliance with federal law because the payout matches the option that was on the bill of lading.
3. Full Value Protection: Replacement Cost, with Conditions
Full Value Protection is the alternative the mover must offer alongside Released Value, defined at 49 CFR 375.703. Under this option the carrier is liable, at its choice, for any one of three remedies on each lost or damaged article: repair to its prior condition, replacement with a like item, or a cash settlement equal to the current replacement value. The total recovery for the shipment is capped at the declared value you write on the bill of lading.
The carrier sets the price for Full Value Protection in its tariff. It is commonly quoted as a percentage of declared value, typically in the range of roughly one to two percent, and the carrier can offer deductible levels that lower the per-shipment charge in exchange for absorbing the first dollars of loss yourself. The carrier also sets a minimum declared value, usually tied to the weight of your shipment. A common minimum is the larger of the carrier's stated floor or $6 per pound times the estimated weight, which prevents the customer from declaring an unrealistically low value to lower the premium.
One important carve-out is built into the rule. Items of extraordinary value, defined as articles worth more than $100 per pound, can be excluded from Full Value coverage unless you list them on a separate high-value inventory form before the truck loads. Jewelry, watches, fine art, rare coins, and certain musical instruments all routinely cross that $100-per-pound threshold. If you do not list them, the carrier's liability for those specific items can fall back to the 60-cent default even when the rest of the shipment is under Full Value Protection.
4. Third-Party Moving Insurance Is a Separate Market
If you want something the law actually calls insurance, you buy it from an insurer that specializes in shipments. These policies sit on top of whichever valuation option you select with the mover, and they pay you directly without going through the carrier's claim process. FMCSA explicitly notes the option in the same consumer guide: "you may purchase additional insurance from a third-party insurance company."
The trade-offs are real. Third-party policies often pay broader categories of loss, sometimes including damage caused by events outside the carrier's control, and they often pay faster because they are not bottlenecked by a carrier claims department. They cost extra on top of the valuation charge, and the premium reflects the declared value of the shipment. They are most relevant on long-distance moves with high replacement-value contents, especially when paired with the lowest deductible available on Full Value Protection. If you are evaluating whether the carrier itself is one you can rely on for a clean claim, the how to evaluate a moving company framework is the place to start.
5. Local and Intrastate Moves Follow Different Rules
Both valuation options described above are creatures of federal regulation, which means they apply to interstate household-goods moves, meaning moves that cross a state line. A move entirely within one state is regulated by that state, not by FMCSA, and the rules vary. Some states mirror the federal framework almost exactly. Others set their own minimum per-pound liability, their own offering requirements, or their own claim windows. A handful do not regulate household-goods valuation at the state level at all, which leaves the carrier's tariff and the bill of lading as the only contract you have.
The practical takeaway for an intrastate move is to ask the mover for the written valuation options that apply under your state's rules, and to confirm that whichever option you selected is on the bill of lading in writing. The same logic that applies on an interstate move applies here: do not accept blank fields, and do not let "we are insured" stand in for a specific valuation level.
6. How to Choose, and What to Put in Writing
The choice is not abstract. It comes down to how exposed you are willing to be on the day a box is dropped. For a small move where most of the replacement cost is in low-value items, Released Value can be a defensible default. For most household moves, especially long-distance ones with modern electronics, art, or anything fragile, Full Value Protection is the option that aligns the carrier's incentive with the outcome you actually want at delivery.
Bill-of-lading checks before you sign
- The valuation box is filled in, and the option matches what you selected verbally
- If Full Value Protection: the declared value is written, in dollars, and matches what you agreed
- If a deductible was offered: the chosen deductible appears, in dollars
- The valuation charge is itemized as a separate line, not folded into "fees"
- If you have items over $100 per pound: a high-value inventory form is attached and signed
- You have a fully executed copy of the bill of lading before the truck leaves your home
The single best moment to fix a wrong valuation is before the driver pulls away from the curb. After delivery, the dispute is about what the contract said, and the contract is the bill of lading. Everything you want the carrier to be liable for has to be reflected there in writing.
Frequently Asked Questions
Is moving valuation the same as insurance?
No. FMCSA is explicit: valuation is the liability the moving carrier accepts for your shipment under federal law, not an insurance policy. Insurance is regulated separately by state insurance commissioners and sold by licensed insurers. A moving company can offer you valuation under 49 CFR 375.701, but if you want a true insurance policy you generally have to buy it from a third-party insurer that specializes in moves.
What is the 60 cents per pound rule?
On an interstate household-goods move, Released Value Protection caps the carrier's liability at 60 cents per pound per article. A 50-pound television is worth $30 under that formula no matter what you paid for it. The rule is set by 49 CFR 375.701 and is the default that applies whenever you do not affirmatively select Full Value Protection in writing.
How much does Full Value Protection cost?
Full Value Protection is priced by the carrier, typically as a percentage of the declared value of your shipment, often with a deductible option that lowers the premium. A common pricing range is roughly 1 to 2 percent of declared value, with the carrier setting a minimum declared value tied to the weight of the shipment. The mover must give you the price and the deductible options in writing before move day.
What does Full Value Protection actually pay if something is damaged?
Under Full Value Protection, the carrier owes you, at its option, either repair, replacement with a like item, or a cash settlement for the current replacement value. The total liability is capped at the declared value of the entire shipment. The mover can also limit liability on items of extraordinary value, such as jewelry or art valued above $100 per pound, unless you list them in writing on a high-value inventory form.
Do these rules apply to local moves?
The two federal valuation options apply to interstate household-goods moves, which cross a state line and fall under FMCSA jurisdiction. A move entirely within one state is regulated by that state, and the rules vary. Some states mirror the federal framework, others have their own minimum liability and offering rules. If your move is intrastate, ask the mover for the written valuation options that apply under your state's household-goods regulations.
Where do I see which protection I have?
It is on the bill of lading. The bill of lading is the contract of carriage, and it must show which valuation option applies, the declared value if you selected Full Value Protection, the deductible if any, and the charge. If the box is blank or pre-filled in a way you did not authorize, that is the time to correct it in writing, not after delivery.
A Practical Takeaway
The valuation choice is one of the highest-leverage decisions in a move, and it is almost always made in the last five minutes before the truck rolls, when a clipboard appears in your hand and the only question being asked is whether you would like to initial here. The rule is to know which option is on the bill of lading before that clipboard moment, to know what the option pays in real dollars, and to make sure the document leaves your driveway with the correct boxes filled in. If you do that, the federal framework works the way it is supposed to. If you do not, the default option is the one that quietly applies, and 60 cents per pound is the math that follows.