The default federal moving damage coverage pays 60 cents per pound per article, valuing a $2,000 television at $39 and a destroyed 10,000-pound shipment at $6,000 instead of $50,000+

Federal law sets the default 'released value' liability for interstate movers at $0.60 per pound per article, which most moving companies include at no extra charge. Consumers who do not affirmatively select and pay extra for Full Value Protection are automatically enrolled in this minimal coverage. Most consumers do not understand the distinction until filing a claim after items are broken. Why it matters: a family whose $1,200 laptop (weighing 5 pounds) is destroyed receives $3.00 in compensation, so they must absorb essentially the full replacement cost out of pocket, so families who just spent $5,000-$15,000 on a long-distance move face additional thousands in uncompensated losses, so the financial shock compounds with other moving costs like security deposits, utility setup fees, and temporary housing, so lower-income families who could least afford the move in the first place are disproportionately harmed. The structural root cause is that the $0.60/pound rate was established decades ago and has never been adjusted for inflation or modern item values, and movers have a financial incentive to steer customers toward the free minimal coverage rather than the paid Full Value Protection because it reduces the mover's liability exposure to nearly zero.