Understanding Estimates & Valuation

In This Guide

• What a moving estimate is
• How binding estimates work
• How non-binding estimates work
• What valuation means
• What Released Value Protection covers
• What Full Value Protection means
• How estimates and valuation are different
• What to review before signing your moving documents

What Is a Moving Estimate?

A moving estimate is a written document that outlines the expected charges for your move. For interstate household goods moves, the estimate should identify the services and charges that apply to the shipment.

An estimate is more useful when it reflects the actual belongings and services involved in your move. Before agreeing to an estimate, review what is included and make sure the mover has accurate information about what you're moving and the conditions at both locations.

Review These Details

• Pickup and delivery addresses.
• Items included in the shipment.
• Transportation charges.
• Accessorial or additional services.
• Applicable fees or minimum charges.
• Payment terms.
• Whether the estimate is binding or non-binding.
• Valuation or liability options.

What Is a Binding Estimate?

A binding estimate is a written agreement that establishes the charges for the quantities and services identified in the estimate. For an interstate move, a binding estimate generally means you won't pay more than the estimated amount at delivery for the services and items covered by that estimate.

The important part is what the estimate actually includes. If you add belongings or request services that were not included, the mover may need to revise the estimate or address the additional services separately.

Before Accepting a Binding Estimate

• Review the complete inventory or list of items being moved.
• Confirm all requested services are included.
• Check whether stairs, elevators, long carries, or other access conditions are accounted for.
• Confirm pickup and delivery addresses.
• Ask about additional charges that could apply if the scope of the move changes.
• Keep a copy of the signed estimate.

What Is a Non-Binding Estimate?

A non-binding estimate is an approximation of what your move is expected to cost. Unlike a binding estimate, it does not guarantee the final charges.

For an interstate move, final charges under a non-binding estimate can be based on factors such as the actual weight of the shipment, the services provided, and the mover's applicable tariff. The estimate should give you a reasonable idea of the expected cost, but you should be prepared for the final amount to differ.

Before Accepting a Non-Binding Estimate

• Understand that the estimate is not a guaranteed final price.
• Ask what factors determine the final charges.
• Confirm how the shipment will be weighed if applicable.
• Review the services included in the estimate.
• Ask about minimum charges.
• Understand the payment amount that may be required at delivery.
• Keep a copy of the estimate and related documents.

Binding vs. Non-Binding: What's the Difference?

The main difference is whether the estimated transportation charges are fixed for the items and services identified in the estimate. A binding estimate provides a defined price for the listed scope of work, while a non-binding estimate is an approximation that can change based on the actual shipment and services.

What Is Valuation?

Valuation refers to the level of liability a mover assumes for your household goods if items are lost or damaged while in the mover's custody. It is different from the price estimate: the estimate addresses what you may pay for the move, while valuation addresses the mover's responsibility for your belongings.

For interstate household goods moves, federal rules require movers to offer two liability options: Full Value Protection and Released Value. Review the specific terms provided by your mover before choosing one.

What Is Released Value Protection?

Released Value Protection is the more limited valuation option available for interstate household goods shipments. Under this option, the mover's liability is generally limited to 60 cents per pound per article.

That means compensation is tied to the weight of the individual article rather than its purchase price or replacement cost. For example, a lightweight item with a high retail value could receive substantially less compensation under released value than its actual value.

Before Choosing Released Value

• Understand that protection is based on weight rather than the item's full value.
• Ask the mover to explain the applicable valuation terms.
• Consider whether the level of protection makes sense for your belongings.
• Identify high-value items before the move.
• Review the documents you must sign to select or waive valuation options.

What Is Full Value Protection?

Full Value Protection provides broader liability protection for your shipment than Released Value Protection. Under this option, subject to the terms, limitations, and exclusions in your moving documents, the mover's liability is generally based on the value of the articles rather than only their weight.

If an item is lost or damaged, the mover may be responsible for repairing the item, replacing it with a similar item, or making a payment toward the item's replacement, depending on the applicable terms. Full Value Protection may have an additional charge and may include a deductible.

Before Choosing Full Value Protection

• Review the full terms of the protection.
• Check whether a deductible applies.
• Understand any exclusions or limitations.
• Ask how high-value items must be identified or documented.
• Understand how repairs, replacement, or payment are handled.
• Keep a copy of the valuation documentation.

How Do Released Value and Full Value Protection Compare?

The two options differ mainly in the level of liability available for your shipment. Released Value Protection provides limited coverage based on an item's weight, while Full Value Protection generally provides broader protection based on the value of the item, subject to its terms and limitations.

How Are Estimates and Valuation Different?

It's easy to confuse these two concepts because both appear in moving paperwork, but they answer completely different questions. Your estimate concerns the charges for performing the move, while valuation concerns the mover's liability for your household goods.

For example, you could receive a binding estimate for the transportation and services involved in your move while separately choosing between available valuation options. Selecting one does not automatically determine the other.

What Should You Review Before Signing?

Before signing your moving documents, read beyond the total estimated price. Make sure you understand both the financial terms of the move and the level of protection that applies to your belongings.

• Confirm whether the estimate is binding or non-binding.
• Review the services and items included in the estimate.
• Check the pickup and delivery addresses.
• Review payment requirements.
• Read the valuation option you've selected.
• Understand the level of liability provided.
• Check for deductibles, exclusions, and limitations.
• Ask how high-value items are handled.
• Keep copies of all signed moving documents.

How Should You Prepare High-Value Items?

If you have jewelry, artwork, collectibles, electronics, antiques, or other items with significant value, identify them before the move. Ask how your chosen valuation option treats high-value belongings and whether special documentation or declarations are required.

You may also want to photograph valuable or fragile items before they are packed. Keep those records with your important moving documents rather than placing the only copies inside the shipment.

High-Value Item Checklist

• Identify valuable or difficult-to-replace belongings.
• Ask how they are treated under your valuation option.
• Check whether special documentation is required.
• Photograph important items before the move.
• Keep purchase records or other documentation when available.
• Keep irreplaceable personal items with you when appropriate.

What Questions Should You Ask Before Choosing a Valuation Option?

The right questions depend on your belongings and the terms offered for your specific move. You don't need to memorize the terminology; focus on understanding what happens if something is lost or damaged.

• What valuation options are available for my move?
• What does Released Value Protection cover?
• What does Full Value Protection cover?
• Is there an additional charge?
• Does a deductible apply?
• Are there exclusions or limitations?
• How are damaged items repaired or replaced?
• How are lost items handled?
• Are high-value items subject to special requirements?
• What documentation should I keep?

What Is the Simplest Way to Compare Your Options?

Start by separating the decision into two parts. First, determine how the moving charges will be estimated and whether the estimate is binding or non-binding. Then review the available valuation options and decide which level of protection makes sense for your shipment.

1. Review the written estimate.
2. Determine whether it is binding or non-binding.
3. Confirm which services and belongings are included.
4. Review Released Value Protection.
5. Review Full Value Protection.
6. Compare any additional charges and deductibles.
7. Check exclusions and special requirements.
8. Select the option you understand and are comfortable with.
9. Keep copies of the completed documents.