What is "Released Value Protection"?
What is "Released Value Protection"?
Released Value Protection is a fundamental level of liability offered by removals providers for goods transported or stored. It represents the minimum liability an accredited moving company typically assumes for loss or damage to a customer's possessions.
How Released Value Protection Works
This protection limits the financial responsibility of the removals provider to a specific, often nominal, amount per item or per unit of weight. In the UK, common terms include liability capped at a rate such as £40-£50 per item, or a rate based on weight, for example, £0.60 per kilogram.
- When an item is lost or damaged under Released Value Protection, any compensation is calculated based on this predetermined rate, regardless of the item's actual value, age, or replacement cost.
- For instance, a damaged 15kg flat-screen television with a market value of £500 might only be compensated at £9 if the liability is £0.60 per kilogram (£0.60 x 15kg). This demonstrates that the payout is generally significantly lower than the true cost of repair or replacement for valuable goods.
Key Considerations and Limitations
Released Value Protection serves as a baseline and is rarely adequate for covering the full value of most household items, particularly those of sentimental or significant monetary worth. Customers are strongly encouraged to understand these limitations before a move.
- Limited Coverage: It provides very basic protection and does not cover the full replacement cost of damaged or lost items.
- Basis of Compensation: Claims are settled based on weight or a low fixed amount per item, not the item's current market value or the cost to replace it with a new equivalent.
- Exclusions: Many standard terms and conditions will exclude certain items from any liability, such as jewellery, cash, important documents, and other highly valuable or irreplaceable articles. These should always be transported by the customer.
- Self-Packed Items: If items are packed by the customer, damage claims are often only considered if there is clear external damage to the box itself, indicating mishandling by the movers. Internal damage to self-packed contents without external box damage is typically not covered.
- Storage: This type of liability typically extends to items held in storage by the removals provider, though it is important to check if storage insurance is mandatory for the specific service.
Comparing Protection Options
It is crucial to differentiate Released Value Protection from other forms of cover that offer more comprehensive financial security:
- Full Value Protection: This alternative aims to cover the cost of repairing a damaged item to its original condition, replacing it with a similar item, or compensating for its current market value. More detail is available on What is "Full Value Protection"?.
- Third-Party Insurance: Customers may opt for dedicated moving insurance from a third-party insurer, or check if does my home insurance cover moving. These policies often provide broader and more tailored coverage than the standard liability offered by removals companies.
Practical Advice
Removals professionals should transparently present the terms of Released Value Protection, ensuring customers fully comprehend its limitations. Customers should carefully assess the value of their possessions and decide if this basic level of protection is sufficient for their needs. For peace of mind regarding valuable items, securing additional insurance or choosing a service that includes Full Value Protection is highly recommended.