Moving insurance seems like a small detail, but it could potentially save you from big problems
Your homeowners policy may not cover damages to your property by professional movers, making moving insurance a viable option.
A full-value policy covers the total value of your damaged or broken items and often costs 1% to 2% of the estimated value of your belongings.
Released-value protection policies are often free, but only require the movers to pay out a fraction of your item’s value in event of damage.
Moving companies offer moving coverage protections and third-party insurance companies offer actual moving insurance.
Add moving insurance to the list of things you didn’t know about (like how to hire a moving company) until it was time to move. Moving insurance costs can seem like just another expense, but can you afford to go without it? Learn more about moving insurance and why it’s worth insuring your household goods during the moving process.
Moving insurance protects your belongings from loss and damage during the moving process. With a policy, you’ll guarantee some amount of reimbursement headed your way if there’s a problem.
No two moves are the same, and neither are moving insurance policies. They depend on the distance you move and the total value of your goods. Always check with your provider about the cost breakdowns, including the insurance quotes and reimbursement details.
When you hire a professional company for a move out of state, the company is responsible for transporting your belongings safely under federal law. These companies must follow certain moving rules and regulations that protect you and your haul.
Moving companies take care of this mandate by offering two types of coverage: Full value protection and released value protection. Your reimbursement is directly affected by which coverage you choose.
Know that moving companies cannot legally sell “moving insurance.” Even though most people refer to it as moving insurance when they purchase it, its technical name is “moving coverage.” Only third-party insurance companies (like the national brands you see on TV) can sell moving insurance.
The cost of moving insurance will vary based on the value of your belongings and the coverage option. The released value insurance provided by your moving company is free of charge. On the other hand, full value protection usually costs 1% to 2% of the total estimated value of your belongings. The exact price will depend on the weight of your item and the value per pound as set by your moving company. Additionally, third-party insurance typically costs 1% to 5% of the shipment’s total value.
| Type of insurance | Cost | Protection offered |
|---|---|---|
| Full value protection | 1% of the total estimated value of your goods | Total value of your belongings |
| Released value protection | Free | $0.60 per pound per item |
| Third-party policies | 1% to 5% of the estimated value of your items | Covers belongings other policies may not cover |
Like it sounds, full value protection puts your moving company on the hook for the total replacement cost of your broken or lost items. In the event of lost or damaged items, your mover has three options to fix the problem:
Repair the item
Replace the item
Offer money for the cost of the repair or current replacement value
Full value protection insurance sounds expensive because it is expensive. The costs and the deductibles vary by moving companies, so it's a good idea to comparison shop when interviewing potential moving companies.
Full value protection usually costs 1% of the total estimated value of your household goods.
Let’s say the official weight of your haul is 10,000 pounds. The moving company will designate a value per pound, usually $6, meaning the value of your goods would total $60,000. At 1% cost, you’ll pay $600 for full value protection.
If your moving budget is tight, you might consider released value protection. This type of insurance is free and the moving company’s default coverage if you don’t choose another option.
With released value protection, the company is responsible for no more than $0.60 per pound per item. In other words, if your 50-pound coffee table worth $1,000 is damaged, the mover only has to pay $30 ($0.60 x 50). If you choose released value protection, you have to sign a waiver on your bill of lading before moving day starts.
You can also choose a completely separate third-party moving insurance. Call your current home insurance provider if you think you can get better coverage according to the type of moving service. Some companies include separate coverage for moves, while others will add it to your existing policy for a fee. If your current provider doesn't offer moving insurance, many reputable national companies provide third-party coverage.
Most people use third-party insurance as a gap filler. Full value protection from your moving company will cover the majority of your shipment, but some high-value items, like your family’s heirloom jewelry, will need more protection. Consider third-party coverage for situations your full value protection doesn’t cover, like:
Natural disasters
Mechanical and electrical accidents
Mold and mildew
Moths and insects
Your costs for third-party insurance usually range from 1% to 5% of the shipment’s total value. For example, an insurance policy for $25,000 worth of goods would cost $1,250 at 5% valuation.
When purchasing moving insurance, your moving company is required by federal law to offer you two valuation options. But what exactly does that mean? Valuation means that if any of your items be lost, damaged, or destroyed during a move, the moving company will reimburse you (per the terms of whichever coverage option you choose).
You have the choice between released valuation and full value protection. The former option is the free default option, in which your moving company is responsible for reimbursing you $0.60 per pound per any damaged item. The latter option, full value protection, makes your moving company responsible for covering the total cost of any lost or damaged items.
While moving insurance typically covers the belongings being moved, if you use a rental truck, most rental companies offer insurance in case there is any damage done to the truck. Additionally, third-party companies offer their own moving insurance for highly-valuable items.
Rental truck insurance is affordable (about $20 per day), and the extra coverage insures you against expensive repairs and medical costs you may incur driving a truck that’s larger than usual.
When you reserve your rental moving truck, you’ll have the chance to buy insurance, either piece by piece or in a bundle. Adding liability insurance would be wise, but you probably don't need extra medical coverage if you have health insurance. If the company doesn’t offer you the chance to separate, know that bundled prices cost slightly more and are worth the extra money. Rental truck coverage typically offers:
Collision damage waiver
Supplemental liability insurance
Medical coverage
Cargo protection
As we’ve mentioned, your moving company will offer you valuation options but this is not technically moving insurance. You can only purchase moving insurance from third-party companies.
Keep in mind that you can use third-party insurance to cover expenses that valuation doesn’t. This option can give you peace of mind if you’re moving high-valuable items or experience an unforeseen accident or natural disaster. If there’s an expense that your full value protection policy won’t cover, your third-party insurance will account for the difference (which is usually 1% to 5% of the shipment’s total value).
| Type of Insurance | Type of Protection |
|---|---|
| Specialized-item coverage | This type of insurance is applied to high-value items, including antiques, fine art, pianos, large electronics, and furniture. If these items incur damage, you’ll receive a payout from the insurance company. |
| Self-storage insurance coverage | If you have to temporarily store your items in a storage facility, third-party companies can protect your belongings in the event of damage while in storage. |
| Trip-transit insurance | Trip-transit insurance covers the cost of your belongings if they’re stolen or damaged while you’re transporting them in a moving truck or other vehicle. |
For most people, yes, moving insurance is worth the cost, especially when considering how much it’d cost to replace a truck full of items destroyed in a flood. But, if you're moving locally, just a few miles away, or you don’t have many high-value items, a released value protection policy could suit your needs.
If all goes well with your move, you’ll have paid for peace of mind. However, if you discover missing or broken items, keep all your documentation from your local moving company and third-party insurance companies. Contact each of these companies to start the claims process.
Breyden Kellam contributed to this article.
Moving insurance is a type of insurance coverage that protects your valuable belongings while you’re moving. It offers partial or full reimbursement if your belongings are lost, stolen, damaged, or broken during transit. You can get moving coverage through moving companies, but third-party insurance companies also provide additional protection for items not covered.
Yes, moving insurance is designed to cover some or all of the replacement cost in the event your items are damaged during transit. You can get coverage directly from moving companies or use a third-party moving insurance provider. Plus, you can get coverage from third-party insurers for yourself if you’re moving your belongings.
No, homeowners insurance does not typically cover moving expenses. Homeowners insurance provides coverage and pay-outs if you experience damage to the home you currently live in. You’ll need to save separately for moving expenses like hiring movers, renting a tow truck, or shipping your belongings.
A full-value protection policy is a moving insurance option that provides full reimbursement if a moving company breaks or damages any of your belongings while they’re moving them. These policies are costly compared to free options moving companies offer, but it’s the only way to be 100% sure you’ll get your money back if any of your valuables are damaged.
