While moving to a new city is a frantic task, it also bears a lot of risks with it such as the risk of theft/loss of goods, damage in transit, fire, chemical explosion, etc. To ensure that your belongings reach you safely, we take maximum care; but some situations are beyond your control. To tackle such situations and minimize the losses, it is recommended to take Valuation Options or Full Value Protection (FVP).
When you move to a different State/City (or Neighbourhood), Valuation Option is the consideration which has your back in an unfortunate event of a loss or theft.
What is a Valuation?
Valuation is that amount of your goods which the mover (or moving company) accepts to pay in case of any loss or theft or damage of goods while those are in the custody of the mover (or are in transit).
Yes, it is similar to the concept of insurance but is not the same as insurance. Let us understand how.
Regulation of Valuation Options: Valuation Coverage is regulated by States and the Federal Governments. Both the Governments require that movers should provide for a minimum amount of compensation (Valuation) for the belongings of their customers.
Moreover, these Valuation Options are not governed by the Insurance Laws of the respective states rather are authorized by the US Department of Transportation (Released Rates Orders of Surface Transportation Board).
Difference between Insurance and Valuation
To understand the difference between the two, first, we need to understand the meaning of the term “Insurance”.
Meaning of Insurance: Insurance is a scheme under which a person pays an agreed amount to get his goods secured against any loss or theft or damage. In case of any loss, the insuring party gives an amount to the insured. In this case, the possession of the goods is immaterial.
Difference: In valuation, the value of compensation is established and higher valuation indicates increased compensation. In the case of Valuation, the amount of compensation is transferred by the Mover to the Customer while in case of Insurance, the amount of compensation is given by the Insurance company.
Majorly, there are two types of Valuation Options – Minimum Protection and Full Value Protection.
We need to understand what difference does it make and why you should opt for Full Value Protection. It is important to choose the right Valuation Option. But first, we need to know the meaning of the two terms.
FULL VALUE PROTECTION (FVP)
It is highly recommended to opt for Full Value Protection for the Household items. This is not just for the namesake. Most of the movers and packers offer Full Value Protection (FVP) for the household items when you hire them unless you tell them otherwise. With the Full Value Protection Option, you get the following benefits:
- Repairs of any item which are damaged or destroyed. If any item is repaired, it should be restored back to a similar condition as it was prior to the shipment.
- Replacement of the items, in case it becomes irreparable. The replacement is done with the items of same kind and quality, or
- Reimbursement, in case the aforementioned options are not available. The cash is given for the current market value of the item, irrespective of the age of the item.
It means that if a 48” LED TV is damaged and the customer has opted for FVP Option, he/she shall be entitled to a 48” TV or cash equivalent to the Market Price of that TV.
The price of Full Replacement Value Coverage or Full Protection Value shall be included in the estimated price quoted by the Mover, in case of long distance Moving.
Determination of the amount of compensation: The minimum value of compensation of whole of the shipment for Full Value Protection is $10,000 OR $6.00 multiplied by the Total Weight of the Shipment (in lbs.), whichever is higher.
- Minimum Protection
In order to escape the extra expenses, this option was introduced. In this option, very less compensation is offered. This option is just for the namesake of Valuation as it covers a very nominal amount. The amount of compensation that you receive in case of loss or theft or any other damage could be as low as a maximum of $0.60 per pound per item. This Option is available for no extra cost. It is not recommended to go with this option. This option is not provided unless you (the customer) ask for it specifically.
- Additional Coverage
Coverage for High-Value Items: In case of any high valued item (the value of which is $100 per pound or more), you may notify about the same to the Moving Company. In such cases, your Moving partner may provide for high-value inventory before packing your such belonging. This will ensure a suitable level of moving coverage.
Why do we need Valuation Options?
- Risk Coverage: Such an option provides extensive protection to the coverage of all risks involved in Moving from one place to another. Aspects which the Valuation option covers are:
- Damage due to wrong packaging
- Destruction due to an external factor
- Perishing, etc.
- Tension-free moving: When you know that your stuff is secured you can do other chores such as paperwork and documentation related to the move without worrying for the loss or damage.
- Time Efficiency: If you choose for Valuation option with the Moving Company, it would save a lot of time to hire some other third party to get your belongings secured.
- Cost Effective: Valuation Option is available with the whole of the package. For more details, you may contact us.