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Full Replacement Value Coverage Begins Soon

Full Replacement Value Coverage Begins Soon

Source: WASHINGTON (Army News Service, Sept. 4, 2007)

WASHINGTON (Army News Service, Sept. 4, 2007) - Servicemembers and DOD Civilians will soon be eligible for Full Replacement Value protection on most DOD-funded personal-property shipments.

FRV coverage will apply to personal-property shipments with a pickup date on or after:

• Oct. 1 for international shipments to and from outside the Continental United States,
• Nov. 1 for domestic shipments within CONUS,
• March 1, 2008, for non-temporary storage, and
• March 1, 2008, for local moves and Direct Procurement Method shipments.

Under the FRV program, the Transportation Service Provider is responsible for the greater of $5,000 per shipment, or $4 times the net weight of the shipment, in pounds, up to $50,000.

"In other words, the shipment weight doesn't really factor in until you are over that $5,000 threshold," said Dinah Locklear Butcher, chief of Acquisition and Services Branch, Personal Property Division. "A 100-pound shipment is still protected up to $5,000."

To receive FRV, servicemembers must file their claim with the TSP instead of the Military Claims Office. As before, servicemembers will record loss or damage discovered after delivery on DD Forms 1840 or 1840R, and submit forms to the TSP within 75 days of delivery.

"That means that the forms must be postmarked within 75 days," Ms. Butcher said. "Customers must provide prompt notice of loss and damage."

After the forms are received, the provider has the right to inspect the damaged items.

Servicemembers must then file a claim with the TSP within nine months of delivery. If they miss that deadline, they are still eligible for depreciated value, as in the previous program, for up to two years from delivery.

"After two years, except in specific circumstances, the member is not entitled to any recovery," Ms. Butcher said. "So, I can't stress this enough - meeting these deadlines and filing the claim is in the members' hands."

When the claim is filed directly with the provider, the provider will be responsible for obtaining all repair and replacement costs. The provider will also pay FRV cost on items that need replacing or have been lost or destroyed.

If the provider denies the customer's full claim, makes an offer on the claim that is not acceptable or does not respond within 30 days, the customer may transfer the claim to the MCO.

If the customer transfers the claim to the MCO within nine months of delivery, the claims office will only be responsible for depreciated replacement costs. The claims office will then attempt to recover FRV from the provider. If successful in recovering FRV, the claims office will then pay the customer the difference between the depreciated cost already paid and the FRV cost.

FRV guidelines are available at

Sep 04, 2007
BY Tiffany Ryan

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