According to the US Census, about 12 percent of the US population, or 42 million people, relocated in 2023 and 2024, with about 75 percent of movers staying in the same state. Those figures show substantial mobility in the United States and suggest a need for people to understand moving insurance and its coverage when on the go.
If you are asking yourself, “Do I need moving insurance?” this guide is for you. We’ll cover four types of valuation or insurance, the nature of their coverage, exclusions, and pricing:
Homeowners’/Renters’ Insurance
Released Value Coverage
Full Value Protection
Third-Party Insurance
Homeowners’/Renters’ Insurance
Homeowners’ or renters’ insurance provides some coverage of your possessions during a move, but you should not rely on it as your sole coverage. While homeowners’ policies typically cover your possessions anywhere you take them, coverage is often capped at 10 percent when they are away from home.
During a move, homeowners’ policies typically cover:
Possessions stolen from the truck (with signs of forced entry)
Goods lost to fires
Some losses resulting from accidents
Among the items that are commonly excluded from coverage are:
Contents of boxes packed by the owner (PBO)
Mechanical and electrical failures, such as TVs that don’t work after the move
Breakage of items not covered by an insurance rider (a named addition to your policy)
High-value items not covered by an insurance rider
The limited coverage and numerous exclusions suggest that your homeowners' or renter’s insurance does not adequately cover possessions during a move. Instead, you should consider moving insurance coverage to protect your goods in transit better.
For interstate moves, federal law requires moving companies to provide released value protection at no cost to consumers and to offer full value protection, which typically requires an additional fee.
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)
Third-party or separate liability insurance.
Released value protection is free, though it is built into the price paid for the move. Full-value protection provides more comprehensive coverage but leaves many gaps, while third-party insurance offers the most complete protection, but at a higher cost of moving insurance.
Neither released-value nor full-value protections are insurance products. Instead, the moving company backs them with their internal funds or through separate insurance Instead, the moving company backs them with its internal funds or through separate insurance products it purchases.
Released Value Coverage (Basic Carrier Liability)
Moving companies performing interstate moves are required by law to offer customers released value coverage, the baseline form of coverage. Moving coverage requirements for in-state moves are governed by state laws and regulations.
While released value or basic carrier liability coverage is complimentary, its protection is based on weight rather than the value of your items. Released value protection typically covers your belongings at $0.60 per pound, so that a 40-pound television would have only $24 in coverage. Similar shortfalls occur for all lighter, but valuable items.
Released value coverage also applies only when the moving company is at fault for the loss or damage, which you must prove when filing the claim. Released value coverage often excludes items packed by the owner unless the box shows signs of external damage. Fragile possessions are also excluded unless you declare them. Your exact coverage depends on the moving company's policies, so be sure to review your contract.
Full Value Protection Moving Insurance (Full Replacement Value)
Federal law also requires companies performing interstate moves to offer full value coverage. Like released value coverage, individual state laws and regulations dictate moving company coverage for in-state moves.
The cost of full-value protection is included in your moving quote unless you waive it, with the fee typically amounting to 1 to 2 percent of the value of your goods.
Some people prefer full-value protection because it covers the calculated value for items you wish to insure. The moving company will either reimburse the item’s replacement cost, provide a similar item as a replacement, or pay for the repair.
Like released value coverage, the mover promises to cover your goods in accordance with the terms and conditions they establish, so you must carefully review the contract to ensure it provides the coverage you need.
Often, you will not have coverage for items worth more than $100 per pound unless you declare the item on a high-value inventory form. You also must show that the moving company is at fault for the losses or damage, which you document when submitting the claim.
Third-Party or Separate Liability Insurance
Third-party insurance is always optional and is typically controlled by state law. Customers use this form of insurance to cover all their possessions or only high-value items against events that the full-value protection excludes. Customers are reimbursed for their covered loss minus the amount paid by the moving company under its required liability coverage.
Third-party policies often cover risks that valuation plans do not, such as a truck accident, fire, or theft. However, it’s important to read the policy’s terms since some third-party policies only cover total loss, or an entire shipment being destroyed, while others cover individual items.
The third-party moving insurance process starts by taking inventory of your possessions and assessing their value; you then use these numbers to shop for insurance options. Like most forms of insurance, moving insurance has different coverage levels, with some plans providing limited protection and others fully replacing and repairing lost or damaged items.
Third-party insurance generally costs 1 to 4 percent of the value of protected goods, with prices varying based on the possessions you insure.
What Does Moving Insurance Cover and Exclude?
Like all insurance, the devil is in the details in terms of what the policy covers, so you need to be clear on the coverage you need and review the policy to ensure you get what you asked for. You’ll need to look for whether the policy covers:
Only covers items in transit and in storage as well
Losses caused by Acts of God, such as floods, hurricanes, tornadoes, and earthquakes.
Items you pack yourself
Items transported by friends that accidentally break
Lastly, if you pack dangerous or restricted items, you may invalidate your coverage, so steer clear of them.
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, the value of your possessions, and the cost of moving insurance. Begin by taking inventory of the items you want to move. You want to be sure the question of “does renters’ insurance cover moving” is answered before going forward.
Items best covered by released value protection are books, clothes, and budget furniture, whereas electronics, furniture, artwork, or heirlooms likely need full-value protection or third-party insurance.
Tips for choosing the best coverage for your situation include:
Inventory the items you’re transporting and use the information to select the right coverage. You can get third-party insurance for specific items or the entire shipment.
Long-distance moves increase the potential for damage, and routes facing winter weather, which might call for a policy that includes Acts of God coverage.
When selecting a third-party insurance policy, compare provider quotes, policy details, deductibles, and reviews.
Types of Moving Insurance Coverage
Coverage Type | What it covers | Protection Level (e.g., Low, High) |
Basic carrier coverage | All items, based on poundage, minus exclusions | Low |
Full-value protection | Identified or all items, depending on the policy | Low to Medium |
Third-party insurance | Identified or all items, depending on the policy | High |
What Is Covered vs Not Covered in Moving Insurance
Covered | Not Covered | |
Transit damage | @ $0.60/lbs. | Acts of God |
Accidental loss | @ $0.60/lbs. when forced entry | Unexplained loss |
Handling damage | @ $0.60/lbs. when mover packed | Packed by owner (PBO) |
Carrier-related incidents | Full coverage, but full-value claims process can be slow | Depends on third-party policy |
Filing a Moving Insurance or Coverage Claim
The claims process is similar whether you are filing a released, full-value, or third-party claim. The process begins with documenting the damaged or missing items. Taking pictures of the damaged goods helps you to support your claim, as does requesting that the driver make a note of the damages or loss.
Your mover or third-party insurer will require that you submit your information in writing, typically online. After submitting the claim, they may contact you for additional information and photos or to request an inspection.
It's helpful to provide receipts or appraisals as proof of the value of higher-value items. Without some proof of their value, you leave their determination to the adjuster. Having third-party coverage complicates filing a claim, but if you need third-party insurance to protect your possessions, the extra time spent filing is time well spent.
Final Thoughts
Do I need moving insurance? Does renters’ insurance cover moving damage? Are full-value protection moving insurance and third-party moving insurance worth the price? As mentioned earlier, there isn’t a straightforward answer to the question. Instead, it depends on your personal needs, the value of your possessions, and your budget. However, full-value coverage paired with third-party insurance to cover the gaps in the full-value coverage provides the best combination of coverage and economy.
You can also contact your homeowners’ or renters' provider to ask about coverage for specific items during a move. If protection is available, request information on limits and deductibles to ensure your possessions are adequately covered.
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FAQs
Can you buy moving insurance for international moves?
Yes, you can receive valuation coverage and buy third-party moving insurance for international moves. Reviewing the policy terms is always important, but doing so before an international move is even more vital, because protection terms and costs can differ significantly from those for domestic moves.
What happens if my claim is denied?
There’s more than one way to respond to a denied claim. First, you can negotiate further with the company or file a complaint with the Federal Motor Carrier Safety Administration (FMCSA) if the issue relates to the mover's responsibility and conduct. Second, you can consider legal action.
Should I use my mover’s recommended insurer?
While movers may recommend an insurer, you are best served by comparing rates and terms from different providers. Choosing the mover’s recommended provider may cause you to miss out on a better policy through another provider.
