Certified Relocation Professional (CRP) Practice Exam

Which type of household goods moving insurance offers the least amount of liability the mover can assume?

1. Released value

2. Declared value

3. Full value coverage without deductibles

4. Full value coverage with deductibles

The correct answer is: Released value

Released value insurance provides the least amount of liability the mover can assume. This type of coverage is typically included at no extra cost and limits the mover’s liability to a very minimal level, which is often based on the weight of the goods. For example, if an item is lost or damaged under released value protection, the mover might reimburse the owner at a rate of 60 cents per pound. This essentially means that for heavier items, the compensation might not even come close to covering the actual value of the household goods. This minimal liability places the responsibility for any potential loss or damage largely on the customer. In contrast, other types of insurance, such as declared value and full value coverage (with or without deductibles), offer higher levels of protection and ensure that the mover has a greater responsibility in the event of an incident affecting the client’s goods. Thus, released value stands out for its limited scope of liability, making it the option that offers the least protection for the customer’s belongings.