What is “valuation”? And why is it important?
I like full things. A full tank of gas. A full serving of dessert. A full moon. Yes, I think full is generally best.
Especially when it comes to valuation. You see, valuation refers to the basis for reimbursement when something gets lost or damaged or destroyed during your move. (Yes, things can happen.)
With full value protection, you know you will be compensated appropriately for your loss. We’ll repair or replace the item. Or, we’ll pay you cash so you can have the item repaired or replaced yourself.
The settlement amount depends on the current value of the item. For instance, let’s say we’re transporting your belongings when a meteorite crashes into the truck trailer and totals your snowmobile. We’d pay to replace your sled based on its appraised market value, taking into account its age, mileage, and overall condition.
If, however, the meteorite took off the front ski assembly only, and we determined it could be fixed, we might choose to pay for a repair. We would only do this, however, if your vehicle could be returned in as good or better condition than it was before the damage.
There is another option, which I do not recommend, called Minimal Protection (some refer to it as “released value” or “basic value”). With this choice, reimbursement is based on a flat rate of 60 cents per pound. Let’s say that meteorite takes out your flat-screen TV, which weighs 40 pounds. Minimal Protection would reimburse you $24. Obviously, not enough to buy another TV.
Minimal Protection leaves a lot to be desired. That’s why we believe every move should be protected by full valuation. We figure Full Valuation Protection automatically when we quote you a price for our services. The only requirement is that the minimum declared value of your shipment is the greater of $5,000 or $4 times the total weight in pounds.
Technically, valuation is not insurance, because it is not governed by state insurance laws. But it is an important form of protection for your goods when you move. Unless you’re transporting things of very little value, make sure you say “yes” to full value protection. Otherwise, you could find yourself full of regret.