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Do You Need Moving Insurance — and, If So, What Type Should You Choose?
By Joan Pabón MONEY RESEARCH COLLECTIVE
Whether you’re moving across the country or across town, your homeowners or renters insurance may protect your belongings against named perils while in transit or storage. But these policies won’t cover you in all situations, and it’s in those scenarios where having additional coverage can pay off.
Read on to learn more about what moving insurance covers, when it’s needed and how it’s priced.
Table of Contents
- What is moving insurance?
- Do you need moving insurance?
- Do moving companies offer moving insurance?
- What type of insurance do you need for moving?
- How to choose the right type of valuation for your needs
- What insurance options do you have if you’re moving yourself?
- How much does moving insurance cost?
- Is moving insurance worth it?
- Moving insurance FAQ
- Summary of our guide to moving insurance
What is moving insurance?
In most situations, homeowners or renters insurance affords some coverage for your belongings while they are in your home, in storage or in transit to your new residence. However, if you’ve hired a professional moving company, neither of those policies will cover your belongings against loss or damage while being packed or handled by the movers. In such scenarios, you would need a different form of coverage.
Interstate movers — those that are licensed to move between state lines — are legally required to provide basic coverage for your belongings, called released value protection. According to the Federal Motor Carrier Safety Administration (FMCSA), released value protection is free but coverage is limited to a modest 60 cents per pound per article. Interstate movers also offer more comprehensive coverage, called full value protection, for an added cost. Both of these options are not actually insurance policies but rather a type of coverage known as valuation.
Depending on your situation, having a combination of renters or homeowners insurance and a full value protection plan can yield the most comprehensive coverage for more expensive household goods. Nevertheless, even full value protection plans have limits with regard to high-value or irreplaceable items like electronic equipment, jewelry and artwork. Alternatively, customers may combine released value protection with third-party liability insurance sold through the moving carrier or another company.
Do you need moving insurance?
Whether or not you need moving insurance will depend on how you are moving and the value of your belongings.
As mentioned above, homeowners and renters policies afford coverage for personal belongings stored in your home, your car or even a storage facility. However, these policies won’t pay out if your items are lost or damaged while being handled by professional movers. If you’ve hired a professional interstate or long-distance mover, these companies will generally include full value protection in their initial moving quote. Of course, you may opt to waive that coverage (and its charge) and keep the standard valuation, which offers minimal protection but is free of charge.
Those who rent a truck or trailer to move their belongings themselves should inquire about insurance with the rental company. When you rent a car, your car insurance coverage typically extends to the rental vehicle, but that’s not the case with moving trucks or trailers. Companies like U-Haul offer separate damage coverage that protects you and your passengers, the rental vehicle or trailer, and your cargo. Similarly, moving container companies offer protection plans, but the scope of the coverage may be limited to the depreciated value of your household goods.
Regardless of how you choose to move, the Insurance Information Institute (III) recommends reaching out to your insurance company to ask about the extent of your home insurance with regard to personal belongings while in transit. Your insurer can also assess your situation and help you choose a specialty insurance policy or additional floater to your existing policy, if needed.
Do moving companies offer moving insurance?
Movers do not offer insurance, per se. But federal laws require interstate movers to offer two liability coverage options, also called valuation. The standard valuation option, released value protection, is free and offers minimal protection against damage. The more comprehensive option is called full value protection and will cover your items for a higher amount.
Interstate movers must include full value protection coverage in all initial service estimates, which increases the overall cost of the move. Nevertheless, customers may waive the full value protection plan and keep minimal coverage.
Note, though, that all professional movers limit their responsibility with regard to high-value items and will require you to complete a high-value inventory form listing all items that exceed a certain value or need additional attention.
What type of insurance do you need for moving?
Again, the type of insurance you’ll need for moving will depend on how you’re moving and the value of the household goods you’re transporting. If you don’t have many valuables and are moving in your family car, your homeowners or renters insurance should cover your belongings against named perils, even while in transit.
On the other hand, if you’ve opted to hire professional movers, you’ll likely need additional coverage. Long-distance and interstate movers are legally required to offer customers two valuation options from which to choose: full value protection or released value protection. Some moving companies may also offer separate liability coverage underwritten by third-party insurers.
Let’s go over these options in more detail.
Full value protection
Full replacement value protection, also called full value protection, is the most comprehensive moving “insurance” option available from licensed interstate movers. Full value plans are included in all initial moving estimates and will increase the cost of the move, but customers may waive this option and keep the minimum coverage required by law, which is free.
Under full value protection, your mover is responsible for covering the repairs necessary to restore your belongings to their original condition or paying for their replacement with items of like kind and quality if they are lost or damaged during the move. Besides its premium, full value protection has a deductible, the cost of which depends on the moving company.
As mentioned above, full value coverage has limits. The minimum level of coverage under this plan is $6 per pound times the weight of the shipment. (Nevertheless, moving companies may set a higher minimum.) Customers may also declare a higher value for their items, which will entail an additional cost. If items in the shipment exceed a value of $100 per pound, they must be reported to the moving carrier and listed in a high-value inventory form. If you fail to report any high-value items that are subsequently damaged or lost during the move, the mover will not be liable to repair or replace them.
Examples of high-value items include:
- Antiques
- Jewelry
- Musical instruments
- China and silverware
- Furs and rugs
- Computer hardware or software
- Designer clothing and accessories
- High-end furniture and appliances
- Firearms
- Collectibles
Released value protection
Also called waiver of full (replacement) value protection, released value plans offer basic protection at no additional cost. Under such a plan, your items are covered at 60 cents per pound per article. Before waiving full value coverage, consider the replacement cost of your items against their weight. If you have an expensive yet lightweight piece of equipment that gets damaged in the move, you will likely get a refund for a fraction of its replacement cost.
Third-party insurance
Some professional moving carriers may give customers the option of increasing the released value protection option through separate liability coverage underwritten by a third-party insurance provider. According to the III, the moving company will still be liable for 60 cents per pound per item but the insurance company will cover the rest of the loss — up to the coverage limit you’ve purchased. If you purchase third-party liability coverage through your moving company, the mover is responsible for providing you with a copy of your policy upon purchase.
How do you choose the type of valuation that’s best for you?
When choosing a valuation option, consider the value of your property. If you’ve downsized before moving, and/or your furniture and appliances are older or easy to replace, you might feel comfortable waiving the full replacement value option. If you’re moving a larger shipment of valuable or hard-to-replace items, then full value coverage may provide you greater peace of mind.
What insurance options do you have if you move for yourself?
If you’re opting for a DIY move, your homeowners or renters coverage should afford protection for your belongings while in transit. But confirm that’s the case before you load up the truck or DIY container. Call your insurer or go through your policy documents to find out the needed details.
If you rent a moving truck, your insurer or credit card issuer is unlikely to cover damages to the vehicle or your cargo, even if they do so for rental cars. Credit card companies and car insurers generally set a weight limit on rental vehicles. And even if your policy covered the rental truck, you would still have to pay for the damages and repairs upfront and wait to be reimbursed by your insurer.
With these issues in mind, truck rental services typically offer damage protection plans for an added cost. These plans may cover the following:
- Damage to the vehicle
- Damage to the cargo
- Medical costs for the driver and passengers
Nevertheless, check with the rental company so see what protection plans it offers. Some policies may exclude liability protection, so you may still have to purchase additional coverage.
Trip transit insurance
Trip transit insurance covers your household goods against the same perils your homeowners policy does (fire, vandalism, theft, etc.). This coverage is effective while your items are in transit and in storage, yet limits may apply. For example, the III warns that this policy may not cover damage due to flooding in a storage facility.
This protection in transit can cover the full value of your property or be combined with the standard valuation option offered by your moving carrier for enhanced protection. Separate coverage may be required if you are keeping your items in a storage facility for an extended period.
How much does moving insurance cost?
Released value protection, the standard valuation option offered by all licensed moving carriers, is free to all customers. Those who opt to maintain full value coverage, which covers items at a minimum of $6 per pound by the weight of the shipment, will generally pay a percentage (typically around 1% or 2%) of the estimated value of their property. Third-party coverage may be more expensive but will vary by company.
Is moving insurance worth it?
Moving insurance could be well worth its cost, especially considering the value of your shipment and the likelihood of damage based on the distance of your move. If you’re moving expensive appliances, furniture or other high-value goods, you may want to keep the full value protection option your professional mover is legally required to include in your initial estimate. You may even want to pair full value coverage with extra-cost third-party liability insurance for added protection.
Here’s an example to help you put things in perspective. If you were moving a new, 35-pound LED television valued at $500 and waived full value coverage, your mover would be liable for only 6 cents per pound in compensation ($21 total) should the set be destroyed during the move. With full value protection, the minimum coverage the moving company must offer is a hundred times higher – $6 per pound. That means you’d get at least $210 in compensation for the destroyed TV – and possibly more if you choose to buy higher-value coverage from the mover.
Moving insurance FAQ
When should you get insurance for moving?
There's no moving insurance, per se, but there is the option to purchase full value protection from the mover. You may want to consider this coverage if you are shipping valuable household goods or items that could be hard to replace if damaged or misplaced.
Your homeowners or renters insurance policy will not cover damage or loss that occurs to your belongings while being handled by professional movers. If you choose to waive the full value protection offered by the moving company (at extra cost), your belongings will be covered at a minuscule 6 cents per pound per article, which is the standard (and free) valuation option. Some movers also offer third-party liability coverage, which you can purchase to cover the full value of your shipment or use to augment the standard valuation.
How to file a claim with your moving company
Most interstate and long-distance movers have customer service portals where you can file claims online. According to the FMCSA, the federal agency that regulates interstate moving, you have nine months from the agreed-upon date of delivery to file a claim for lost or damaged items. Claims must be submitted in writing to either the mover or its third-party claims processing company. You should receive confirmation that your claim has been received within 30 days and get a claim disposition agreement within 120 days. The moving company may request an extension of up to 60 days if it cannot provide you a disposition in the appointed time frame.
What does moving insurance cover?
In the event of loss or damage, full value coverage – a liability option available at extra cost – will pay to repair your items to their original condition or replace them with articles of like kind and quality. If you choose to waive full value coverage, your belongings will be covered at 6 cents per pound per article. This means that if your 35-pound LED television were damaged, the mover would be liable for only $21.
What does moving insurance not cover?
What is and isn't covered under moving insurance will depend on the type of coverage you purchase, if any. Valuation options will cover up to a certain dollar amount and exclude high-value items. Third-party liability insurance may cover the full cost of your belongings, but can cost up to 5% of their total value.
Summary of our guide to moving insurance
If you are moving yourself in your family vehicle, your renters or homeowners insurance policy should cover your belongings against named perils, even while in transit. But if you’ve hired a professional moving company, neither of those policies will cover your items against damage or loss while being handled by the movers.
Interstate moving companies are legally required to offer two types of extra-cost liability coverage options, called valuation. You may also supplement your valuation coverage with third-party liability insurance for added protection. And if you’re renting a moving truck, know that your car insurer or credit card company is unlikely to cover damage to the vehicle or your cargo. Ask your rental company about coverage options.
Joan is a professional translator, writer and editor with a special interest in personal finance and insurance topics. She has been a contributing author and independent researcher at ConsumersAdvocate.org since 2017 and an editor at Money since 2019. Her work has been featured in MSN Money and Apple News.