Valuation vs Insurance: Basic 60¢/lb, Actual Cash Value and Full Value Protection

“Are you insured?” is the question everyone asks a mover. It is the wrong question, or at least an incomplete one. The protection on your belongings during a California move is called valuation, it is set by you on the Agreement for Moving Services, and the level you choose decides what you get back if something is lost or damaged. Here is how it works, using the terms and figures from the state consumer booklet.

Valuation is not insurance

Insurance is a policy from an insurer, with premiums and a claims adjuster. Valuation is the mover’s own liability for your goods, defined by tariff and contract. A licensed mover must carry certain insurance to hold its permit, but that is about the company’s operation. What happens when your dresser arrives with a gouge is governed by valuation.

The booklet also suggests checking any insurance you already have — homeowners or renters policies sometimes cover goods in transit — before paying for additional protection. If unsure, call your agent.

The three levels

Basic coverage: 60 cents per pound per article

This is included in every California mover’s rates at no extra charge. Recovery is 60 cents multiplied by the weight of the item (or the carton it is packed in). The booklet’s own example: a 20-pound item that is lost or damaged recovers $12.00. A 60-inch TV weighing 50 pounds recovers $30. A solid oak dresser at 150 pounds recovers $90.

The booklet calls this “very minimal protection” and notes your goods “are probably worth considerably more.” It is honest about that, and so are we. Basic coverage is a floor, not a plan.

Actual Cash Value protection

Recovery at the fair market value of the lost or damaged item — its depreciated value — up to the total value you declare. The booklet says ACV is determined by the item’s cost new, its age, its condition when the mover received it, and the value you declared. A five-year-old couch is covered for what a five-year-old couch is worth, not what a new one costs.

The mover may charge for ACV protection and must state the rate on the Agreement, typically per $100 of declared value.

Full Value protection

Recovery at replacement value, up to the total you declare. The mover may choose to repair the item, replace it with a like item, or pay for replacement. Full Value usually costs more than ACV because it covers more. Movers may offer deductibles with Full Value; you are responsible for the deductible unless the item was lost by the mover.

Again, the charge is stated on the Agreement per $100 of declared value.

What happens if you don’t choose

The Agreement has a section called “Consumer Protections and/or Waivers” where you declare the value of your shipment and pick a level. If you leave it blank, California’s default applies: your goods are automatically protected for Actual Cash Value up to $20,000. You may be charged for that protection at the rate stated on the Agreement; if no rate is stated, the rate is zero.

$20,000 sounds like a lot until you add up a household. A couple of bedrooms, a living room, a kitchen and a garage of tools can exceed it quickly. Declare a realistic total.

Declared value: the number that caps everything

Both ACV and Full Value are “up to the total value you declare.” If you declare $15,000 and your goods are worth $40,000, your recovery is capped at $15,000 regardless of option. Walk the house, estimate honestly, and declare a figure that would actually make you whole.

Items of extraordinary value

Antiques, art, gold or silver articles, collectibles, high-end electronics and anything else unusually valuable should be separately described on the inventory with a value declared for each. The booklet is explicit: if you fail to declare them, the mover may not be liable for their full value regardless of the protection level you choose. For true valuables — jewelry, cash, important papers — the advice is simpler: carry them with you.

What valuation does not cover

Maximum Rate Tariff 4 lists situations where the mover is not liable, regardless of level:

• Change in condition or flavor of perishables
• Loss or damage caused by you, including improper packing
• Defect or inherent vice of the article (for example susceptibility to atmospheric changes)
• Insects, moths, vermin, ordinary wear and tear, gradual deterioration
• Mechanical or electrical failure of instruments, electronics or appliances with no sign of exterior damage
• Strikes, riots, civil commotion
• Hostile or warlike action
• Breakage of china, glassware and similar items from normal handling, unless the mover packed them
• Failure to follow the rules for filing claims

Two of those matter most on local moves: self-packed boxes and electronics with no external damage. If you pack your own dishes, you will need to show damage came from handling rather than packing, so keep the box and materials. If a TV does not turn on but the box is pristine, the mover is generally not liable. Photographing electronics working before the move is cheap insurance of a different kind.

Storage-in-transit

If your goods go into storage-in-transit at your request (up to 90 days under your Agreement), they remain protected at your chosen level, and the mover may charge an additional valuation rate for that period. If storage is for the mover’s convenience, you are not charged for the extra protection.

How claims actually work

• Note damage on the delivery paperwork before the crew leaves. Not noting it does not waive your rights, but it helps.
• You must pay the transportation charges first; the paid freight bill is a required claim document.
• File in writing within nine months of delivery: describe the loss, list each item, state the amount per item, and give the move date, addresses and order number. Keep boxes and packing from damaged items. Receipts and repair estimates speed things up.
• The mover must acknowledge in writing within 30 days and pay, decline or offer a settlement within 60 days.
• If the mover fails to respond on time, contact the Bureau at 1-833-488-2327. The Bureau cannot force a settlement, but you can also use arbitration (if both agree) or small claims court.

Choosing

For most households, declaring a realistic total and choosing Actual Cash Value or Full Value is the sensible path; Basic coverage makes sense mainly for low-value loads like boxes of books. Ask for the per-$100 rates on your proposal, do the arithmetic, and pick with your eyes open.

We list valuation options and their cost on every MOVEXER proposal. Request yours, and read the full section in the California consumer booklet.