Understanding Valuation in the Moving Industry

Note: At Elite Movers, we understand that every customer has different priorities when it comes to their move. Some customers prefer efficiency and speed to keep costs within their budget and are comfortable with fewer precautions. Others prioritize minimizing wear and tear as much as possible, even if it means the move takes more time and expense. Finding the right balance between quickness and protection is essential, and this is where understanding your options becomes crucial.

This page is lengthy, but it contains some of the most important information every person should know before moving with any moving company. Understanding valuation coverage and exceptions—like what qualifies as normal wear and tear—can help prevent misunderstandings and resolve the majority of issues customers experience during the moving process. Taking the time to familiarize yourself with this information ensures smoother communication and better outcomes, no matter your priorities.

At Elite Movers, we understand that your belongings are more than just items—they're memories, investments, and treasures. As you plan your move, it's essential to understand how valuation works in the household goods (HHG) moving industry and how you can best protect your high-value items.

1. What is Valuation?

Valuation is the level of liability a moving company assumes for your belongings during a move. A common misconception is that movers carry insurance to cover damages to used furniture or personal items during a move—but in reality, this type of insurance doesn’t exist.

2. Why Doesn’t the Moving Company I Hire Have Insurance that Covers Used Furniture?

Mover's insurance policies, including those offered by insurance providers, avoid covering used or previously owned items in transit because:

• Depreciation: Used furniture and household goods lose value over time, making it difficult to determine their current worth accurately.
• Subjective Condition: Unlike new items with verifiable purchase values, the condition of used goods can be subjective, leading to disputes about whether damage occurred during the move or was pre-existing.
• High Risk of Claims: Moving inherently involves risks—furniture may get scratched, scuffed, or dented. If insurance companies covered every scratch or dent on used goods, it could result in excessive and complicated claims, making such policies unsustainable.
• Lack of Factory Packaging: New furniture typically arrives in protective factory packaging, such as boxes, padding, and shrink wrap, designed specifically to safeguard that exact item during shipping. However, this level of protection isn’t feasible for used items during a household move, as movers must often rely on blankets, padding, and other materials to minimize risk.

Instead, valuation serves as the industry’s solution to provide a form of coverage. While it’s not insurance, it offers compensation for loss or damage within certain limits, ensuring that both customers and movers are protected.

This is why Elite Movers provides valuation options to give you a choice on the level of coverage that works for you—while also recommending homeowners or renters insurance for extra protection on high-value goods.

3. Types of Valuation Coverage

Released Value Protection

• Cost: Included at no additional charge.
• Coverage: Minimal protection at 60 cents per pound per item.
• Example: If a 10-pound antique vase worth $1,000 is damaged, you would receive $6.00 (10 lbs x $0.60).
• Note: This basic coverage will not be sufficient for high-value items and does not include any additional caps, deductibles, or special handling stipulations. With Released Value Protection, if your item is damaged or lost, Elite Movers' liability is limited to 60 cents per pound per item, regardless of the item’s actual value.
• If you feel this level of protection is insufficient for your needs, we strongly encourage you to consider upgrading to a higher-level protection plan or contact Elite Movers to discuss additional options and considerations. Our team is happy to help you choose a plan that best fits your situation, ensuring your valuable items are well-protected.

Full Value Protection

• Cost: Additional fee based on the declared value of your shipment.
• Coverage: Repair, replacement, or cash settlement for lost or damaged items at their current market value, subject to certain limitations and exclusions.
• Deductibles: Many Full Value Protection plans come with deductibles—a set amount you must pay out-of-pocket before coverage applies.

4. Additional Stipulations for Full Value Protection

The following caps, declaration requirements, and other stipulations apply exclusively to Full Value Protection. These do not apply to Released Value Protection.

Caps for Minor Cosmetic Damages

Per Item Cap: Compensation for minor cosmetic damages (such as scratches, dents, or scuffs) is capped at $100 per item.

Per Move Cap: The total compensation for minor cosmetic damages per move is capped at $500.

High-Value Item Declaration

• Coverage Limit: Items are covered up to a maximum of $1,000 per item unless declared otherwise.
• Declaration Requirement: To ensure full coverage, customers must declare the value, condition, and type of any item valued over $1,000 prior to the move.
• Mutual Agreement: This declaration must be signed by both you and Elite Movers to acknowledge the item's value and any special handling requirements.

5. Why Are These Stipulations Included?

Preventing Abuse and Protecting Both Parties

• Vulnerability Without Limits: Without these caps and declaration requirements, moving companies can be vulnerable to fraudulent claims or disputes over pre-existing damages.
• Fair Compensation: Caps help ensure that compensation is fair and reflective of the service provided, preventing inflated claims for minor issues.

Understanding Normal Wear and Tear

• Nature of Moving: Moving often requires loading trucks top to bottom, front to back, which can sometimes result in minor imperfections even when handled carefully.
• Realistic Expectations: These stipulations set realistic expectations about what can occur during a move, distinguishing between significant damage and minor wear and tear.

Encouraging Open Communication

• Customized Care: By discussing concerns and declaring high-value items, we can develop comprehensive plans to minimize risks.
• Special Arrangements: This may include using additional protective materials or adjusting how items are loaded.

Shared Responsibility

• Collaborative Effort: The declaration process ensures that both you and Elite Movers are aware of valuable items, promoting shared responsibility in their care.
• Efficient Handling: Knowing about high-value items in advance allows us to allocate resources effectively.

6. Example Scenario

Imagine your 10-pound antique vase valued at $5,000 is damaged during the move.

Without Declaration:

• Coverage Limit: The vase would be covered up to the standard $1,000 per item cap, minus any applicable deductible.
• Compensation Calculation: If there's a $250 deductible, you'd receive $750 ($1,000 cap - $250 deductible).

With Declaration:

• Full Coverage: Since you've declared the vase's value and it's been acknowledged, accepted, and signed off by Elite Movers, it's covered up to $5,000.
• Compensation Calculation: With a $250 deductible, you'd receive $4,750 ($5,000 declared value - $250 deductible).

7. Understanding Deductibles and Caps

• Discouraging Minor Claims: Deductibles and caps help prevent excessive claims for minor cosmetic damages, keeping the focus on significant issues.
• Lower Premium Costs: They allow us to offer affordable protection plans by mitigating the risk of numerous small claims.
• Fairness and Transparency: These measures ensure clarity in coverage, helping you understand the extent of protection and any out-of-pocket expenses.

8. The Reality of Moving and How We Mitigate Risks

Inherent Risks

When items are tightly packed to maximize space, minor wear and tear can occur despite careful handling.

Communication is Key

To minimize potential issues, we encourage you to share your concerns and special requirements ahead of time.

Customized Moving Plans

• Additional Trucks: Opting for more trucks can reduce stacking, lowering the risk of damage and wear.
• Special Packing Techniques: We can use extra padding or custom crates for delicate and high-value items.
• Flexible Scheduling: Adjusting the moving schedule can allow for more meticulous loading and unloading.

9. Homeowners and Renters Insurance

Many homeowners and renters insurance policies may cover your belongings during a move. This can often provide better protection for high-value items.

Benefits:

• Comprehensive Coverage: May cover accidental damages not included in standard valuation.
• Higher Payouts: Potentially higher reimbursement for valuable items.

Considerations:

• Policy Limits: Check if your policy has coverage limits on certain items.
• Deductibles: Be aware of any deductibles that apply.
• Exclusions: Some policies may exclude items during transit.

We recommend contacting your insurance provider to understand your coverage.

10. Protecting High-Value Items

Inventory Your Belongings

• List high-value items separately.
• Take photographs as documentation.

Communicate with Us

• Inform Elite Movers about items exceeding $1,000 in value.
• Discuss valuation options tailored to your needs.

11. Why Choose Elite Movers?

• Experience: Trusted movers with years of expertise.
• Transparency: Clear explanations of your coverage options.
• Care: We handle your belongings as if they were our own.

12. Ready to Move with Confidence?

Contact Elite Movers today to discuss the best protection plan for your upcoming move.