Many people don’t know that homeowners’ or renters’ insurance may not entirely cover item losses or damages during moving. For interstate moves, federal law requires transport companies to provide released value protection at no cost and full value protection, which typically incurs an additional fee. Released value protection is basic liability coverage that offers minimal protection since it’s the most economical option. Alternatively, full value protection provides more comprehensive protection, but its coverage still includes limitations and exclusions. Otherwise, third-party moving insurance wouldn’t be necessary. Moving companies aren’t technically allowed to sell insurance policies, and that’s where moving insurance can help.
Attaining third-party insurance for moving starts with taking inventory of your items and assessing their value. After documenting the items’ value, you’ll use this number to shop for insurance options. Like most forms of insurance, moving insurance has different coverage levels, with some plans giving you minuscule amounts of protection and others fully replacing and repairing lost or damaged items.
Continue becoming a moving insurance expert with the rest of our streamlined guide below.
Types of Valuation and Moving Insurance
The three types of valuation and moving insurance are released value coverage (basic carrier liability), full value protection (full replacement value), and third-party or separate liability insurance.
Released Value Coverage (Basic Carrier Liability)
Federal law mandates that moving companies performing an interstate move offer customers released value coverage, the baseline form of coverage. In contrast, moving coverage requirements for in-state moves are governed by the state’s laws and regulations. While released value or basic carrier liability coverage is complimentary, its protection is based on weight and doesn’t cover items’ full market value, repair, or replacement. For example, a lightweight luxury watch would receive inadequate compensation if lost or damaged. Released value protection typically covers your belongings at $0.60 per pound per item—often a large discrepancy between items’ actual value.
With valuation protection like released value coverage, movers must know they’ll only receive coverage if the moving company is at fault for item losses or damage, which you have to prove by filing a claim. The fault of a moving company is labeled negligence or legal liability, and the transporter’s actions or inactions must breach a legal duty of care. Released value coverage also tends to exclude items packed by the owner or certain fragile, valuable possessions unless specifically declared, depending on the moving company’s policies and your contract.
Full Value Protection (Full Replacement Value)
Federal law similarly requires companies performing an interstate move to offer full value protection, and you’ll have this cost included in your quote unless you waive it in favor of lower coverage. Like released value coverage, an individual state’s laws and regulations dictate moving company coverage requirements for in-state moves.
Experts recommend full value protection the most since it supplies full coverage based on your items’ calculated worth and what you wish to insure. A moving company will either reimburse you for an item’s current market replacement cost, a similar item as a replacement, or the repair cost. However, you won’t receive coverage for anything worth over $100 per pound unless you declare the item on a high-value inventory form, and like released value coverage, you’ll only receive coverage if the moving company is at fault for item losses or damage, which you have to prove through the claims process. Full value protection is the other main type of valuation coverage for moves, along with released value coverage.
Third-Party or Separate Liability Insurance
Third-party insurance is always optional and is typically controlled by state law. Moving customers use this type of insurance to cover high-value items for damage from certain events that full value protection excludes. Customers are reimbursed for their covered loss minus any amount paid by the moving company under its required liability coverage.
What Does Moving Insurance Typically Cover?
Third-party policies often cover risks that valuation plans won’t, like events such as a truck accident, fire, or theft. However, it’s important to read a third-party policy’s terms. Some third-party policies only cover total loss, or an entire shipment getting destroyed, while others may cover individual items. You’ll also benefit from reviewing a moving insurance policy to see if it covers both transit and storage losses caused by Acts of God, as plans often exclude or limit coverage unless explicitly mentioned. Acts of God are considered to be natural disasters like floods, hurricanes, tornadoes, and earthquakes. Once you’ve reviewed a policy, keep a copy for your records.
When selecting third-party insurance, your movers still need to pay $0.60 per pound for items lost or damaged in transit, but an outside insurer covers anything beyond that figure. Full value protection often covers $6.00 per pound of your total shipment, and you can purchase third-party insurance in addition to full value for reimbursement beyond losses or risks not covered by full value protection, like Acts of God or high-value items above the full value limit. Most third-party and valuation policies will exclude items like jewelry, watches, cash, and other high-value collectibles unless you declare and possibly appraise them.
Most third-party moving insurance policies have specific requirements regarding how you pack your belongings. Generally, coverage only applies if the moving company or a professional packer packs the items in boxes. Packing belongings yourself and in broken boxes could exclude or limit coverage, or reserve reimbursement for total loss during a major incident. Friends who help transport boxes and accidentally break an item can also prevent an insurer from covering your claim. Lastly, you can avoid sabotaging your coverage by not packing dangerous or restricted items in your boxes. Also, always notify your mover about high-value items.
How to Choose the Right Moving Insurance or Valuation Coverage for You
Selecting the right insurance coverage for your move depends on your personal needs, possessions’ value, and budget. Begin by taking inventory of items you want to move. Expensive electronics, furniture, artwork, or irreplaceable items like heirlooms are items where released value protection, and probably full value coverage won’t cut it. Common items people move that are better suited to released and full value protection could be books, clothes, or budget furniture. While most people tend to move with items falling into both value categories, identifying that you’re transporting more high-value items, or vice-versa, can point you in the right direction toward selecting the right coverage. You can also get third-party insurance for certain items or the entire shipment.
Your move’s distance should also influence the type of insurance or valuation coverage you select. Long-distance moves like cross-country transport naturally increase damage or loss risks, and a route facing winter weather might call for a policy with Acts of God coverage. When selecting a third-party insurance policy, compare providers’ quotes, policy details, and reviews. It’s helpful to search for third-party insurers specializing in moving. Movers’ deductible levels for full protection may vary, so weighing the cost vs. the risk is essential. Full protection often adds around a few hundred dollars to your moving cost, or 1%, whereas a third-party policy can add up to 5%.
Steps to File a Moving Insurance or Coverage Claim
Experiencing an incident where you need to file a moving insurance or coverage claim is never fun, but it’s even worse if you don’t know how to respond. There are many similarities between filing a released, full value, or third-party insurance claim, even if they provide different types of coverage. First, begin by documenting any damaged or missing items. Taking pictures will help you remain organized, and requesting a driver take note of damages or losses can strengthen your claim. You also should avoid touching damaged items after you notice something is off.
When you contact your mover or third-party insurer for a claim, you’ll be asked to submit your information in writing, and this is typically done online. Since this varies, you can ask the moving company or insurer for a time estimate on the claims process. After submitting the claim, movers often contact you for additional info, like photos, or request an inspection. If possible, it’s helpful to get proof of value for items, such as receipts or appraisals. Otherwise, you’re leaving value determination to the adjuster. Third-party coverage complicates filing a claim, whereas released or full value claims are limited to the mover. Still, if you need third-party insurance in the first place, the extra time you spend filing a claim will likely be well worth it.
FAQs About Moving Insurance
Before wrapping up, let’s explore a few of the most frequently asked questions about third-party insurance for moving and other forms of coverage.
Can You Get Moving Insurance for an International Move?
Yes, you can buy third-party moving insurance for an international move. You can also receive valuation coverage. Reviewing any coverage policy is vital, but reviews for international moves are especially important since protection terms and costs can differ significantly from domestic moves.
What if My Claim Is Denied?
There’s more than one way to respond to a denied claim. You can try to further negotiate with the company, file a complaint with the Federal Motor Carrier Safety Administration (FMCSA) if it’s an issue relating to mover responsibility and conduct issues, or consider legal action.
Should I Go With My Mover’s Recommended Insurer?
While movers may recommend an insurer, it’s best to compare rates and terms from different providers. By choosing their suggestion right off the bat, you may miss out on a better policy.
Final Thoughts
So, is insurance for moving or full value coverage worth the cost?
We mentioned how that depends on your personal needs, possessions’ value, and budget, but another significant consideration is seeing what coverage you might already have. Homeowners’ or renters’ insurance supplies limited coverage for personal items during a move, but this protection tends to be restricted or requires a special endorsement, like a personal property in transit or moving endorsement. You would need to request any necessary endorsement from your insurer, and some homeowners’ or renters’ insurance providers won’t cover moves entirely.
Still, you can call your homeowners or renters insurance agent to ask about item coverage during moving. If protection is available, request information on limits and deductibles, as you may still need extra insurance. However, if you buy extra insurance, you won’t have to worry about paying for duplicate coverage. Moving items into storage may require a separate storage coverage policy.
