If you’ve ever hired a household goods mover, you’ve heard the phrase “cargo insurance.”

Most people assume it means their belongings are insured for full value.

They aren’t.

Understanding how mover cargo insurance, released value protection, and full value protection actually work can save customers real money — and keep movers out of ugly claim conversations.

Here’s the breakdown in plain English.

What Mover Cargo Insurance Actually Covers

Mover cargo insurance (often called Motor Truck Cargo insurance) protects the mover, not the customer.

It is designed to reimburse the moving company when:

1. the mover is legally liable for damage, and

2. the cause of damage is something the policy actually covers.

It does not automatically insure a customer’s household goods at full replacement value.

Think of it as liability insurance for the moving company, not property insurance for the customer.

Understanding Moving Valuation Options (This Is Where Most Confusion Lives)

Federal regulations require movers to present customers with two valuation levels.

These are not insurance products, even though everyone calls them “coverage.”

The valuation choice determines how much the mover is legally responsible for if something breaks.

These terms are critical for:

• customers planning a move

• movers training new employees

• anyone writing or explaining moving estimates

• people shopping for moving protection

1. Released Value Protection (Default Moving Protection)

If a customer does nothing, they get Released Value Protection.

Typical interstate rate: $0.60 per pound per item

Washington intrastate moves follow the same $0.60/lb standard.

That means:

• a 20-lb TV worth $1,000 → max payout $12

• a 100-lb dresser worth $1,400 → max payout $60

• a 10-lb lamp worth $400 → max payout $6

This is why customers are shocked.

This is also why movers get yelled at even when they did nothing wrong.

Released Value Protection is cheap for customers because it caps your liability at extremely low levels.

It is not insurance and it is not full protection, no matter how it’s described.

2. Full Value Protection (Paid Moving Protection)

Full Value Protection (FVP) is the upgrade.

When a customer purchases it, the mover agrees to:

• repair the item

• replace the item

• or pay its full replacement value

The customer pays a fee for this because the mover is taking on significantly more liability.

Again: this is not insurance.

It is a contractual expansion of liability on the mover’s part.

Where Cargo Insurance Fits Into These Valuation Choices

When a claim happens:

1. The customer’s chosen valuation determines how much you owe.

2. You pay the customer according to that commitment.

3. Your cargo insurer may reimburse you depending on:

   • whether it’s a covered cause of loss

   • whether the policy allows valuation reimbursement

   • whether any exclusions apply

Your insurer:

• never deals with the customer

• never guarantees full replacement value

• never fills in the gap created by Released Value Protection

The policy simply backs up your liability, whatever that happens to be.

Does Cargo Insurance Pay If the Customer Doesn’t Buy Extra Protection?

Yes — but only up to the low liability defined by Released Value Protection.

Example:

• Item weight: 100 lb

• Released Value liability: $0.60 × 100 = $60

• Actual value: $1,200

In this case:

• You owe $60

• Your cargo insurer can reimburse that $60 (if it’s a covered peril)

• Nobody pays the remaining $1,140

This is why customers cannot treat “cargo insurance” as a substitute for choosing the right valuation.

Why Movers Should Explain This Clearly

Because every angry claim call comes from the same misunderstanding:

“I thought my stuff was insured.”

It wasn’t — it was protected at the lowest legal liability level.

When you take time to explain:

• what Released Value actually is

• how low it actually is

• what Full Value Protection actually buys

• that neither option is traditional insurance

…you eliminate 90% of claim disputes before they ever begin.

It also makes you look like you actually care enough to tell people the truth.

Final Takeaway

Mover cargo insurance protects the mover, not the customer.

Valuation options control how much a customer can recover, not the cargo policy.

If you want your belongings protected at something close to their real value:

• Don’t rely on “cargo insurance.”

• Don’t accept Released Value unless you truly can afford the loss.

• Consider Full Value Protection when the contents matter.