Moving Insurance Explained — What Every Consumer Should Know
One of the most overlooked aspects of hiring a moving company is insurance. Many consumers assume their belongings are fully covered during a move. They are not — at least not by default. Understanding how moving insurance works can save you thousands of pounds worth of headaches.
Types of Moving Coverage
Federal law requires interstate movers to offer two types of liability coverage. These are not technically "insurance" — they are valuation options that determine how much the mover is liable for if your belongings are lost or damaged.
Released Value Protection (Basic — Included Free)
This is the default coverage at no additional cost. The mover is liable for no more than 60 cents per pound per item. That means if your 50-pound flat screen TV is destroyed, the mover owes you $30. For a 10-pound laptop worth $2,000, you would receive $6. This coverage is essentially worthless for high-value items.
Full Value Protection (Comprehensive — Additional Cost)
Under Full Value Protection, the mover is liable for the replacement value of lost or damaged items, or they must repair the item. If neither is possible, the mover must pay you the current market value. This coverage costs more (typically 1–2% of the declared value of your shipment) but provides real protection. Always opt for this.
Carrier Insurance vs. Your Coverage
The mover's insurance (which you can check on their MoveSafe safety report) protects the company, not you directly. It covers the carrier's liability in the event of an accident. The valuation coverage options above determine what the mover pays you.
If a mover has no insurance on file with the FMCSA, that is a serious red flag. It means the company may not be able to pay claims even if they are legally liable. Always verify insurance status before hiring.
Third-Party Moving Insurance
You can also purchase separate moving insurance from a third-party provider. This is independent of the mover's valuation coverage and can provide more comprehensive protection, including coverage for:
- Items the mover's valuation does not fully cover
- Damage during self-packing (mover liability often excludes items you packed yourself)
- Delays and storage overruns
- Items in transit between homes when using temporary storage
Companies like MovingInsurance.com and Baker International specialize in this type of coverage.
Does Homeowners Insurance Cover a Move?
Some homeowners or renters insurance policies cover belongings during a move, but coverage varies widely. Check with your insurer before assuming you are protected. Key questions to ask:
- Are my belongings covered while in transit?
- Is there a deductible that applies?
- What is the coverage limit?
- Are high-value items (jewelry, art, electronics) excluded or capped?
Filing a Damage Claim
If items are damaged or missing after your move:
- Document everything immediately. Photograph damaged items and note them on the delivery inventory before the driver leaves.
- File a written claim with the mover within 9 months of delivery. Federal law requires movers to acknowledge your claim within 30 days and resolve it within 120 days.
- If the mover does not respond or you disagree with their offer, file a complaint with the FMCSA and consider arbitration. Interstate movers are required to participate in an arbitration program.
Insurance Checklist Before You Move
- Verify the mover has active insurance on MoveSafe
- Choose Full Value Protection over Released Value
- Consider third-party moving insurance for high-value items
- Check your homeowners/renters policy for transit coverage
- Create a detailed inventory with photos and estimated values
- Declare high-value items separately on the bill of lading
- Inspect and document condition at delivery before signing