The short answer is: Yes. You need moving insurance. Moving insurance helps protect your belongings from loss or damage during transit. This can save you a lot of money in the long run if you need to replace or repair items. However, moving insurance is a complex topic. Not all offerings are created equal. And not buying enough insurance could lead to significant costs.
Most moving insurance falls under three umbrellas:
- Valuation coverage
- Full-value protection
- Released value coverage
Let’s explore how moving insurance can impact the cost of your moving services, whether you book your move directly or through a broker like Safe Ship.
Key Takeaways
- Moving insurance protects your belongings during your move.
- You can use mover-provided valuation, third-party insurance, or a combination.
- Moving insurance costs can vary based on the value of your belongings. The cost is usually 1% to 5% for the best coverage up to a certain weight.
- You can and often should buy moving insurance, even if you’re doing a DIY move.
- Moving brokers can help facilitate finding insurance coverage that meets your exact needs without over-insuring your goods.
What is Moving Insurance?
Moving insurance is a protection plan that covers your stuff against damage or loss when using residential moving services. Most moving insurance covers accidental damage, theft, or loss during transit. It usually takes one of two forms:
- Valuation coverage offered by the moving company itself
- Third-party insurance from a separate insurer
Valuation coverage from moving companies includes options like released value protection, which offers minimal compensation based on item weight, and full-value protection, which often covers repairing or replacing items at or near their current market value.
Third-party insurance companies can be more robust and are often based on the declared value of your belongings. Arrange moving insurance before your move to ensure coverage throughout the entire process.
How Much Does Moving Insurance Cost?
How much you pay for moving insurance depends on a few critical factors. The type of coverage you choose and the value of your items are the biggest factors. The deductible — the amount you must pay before the coverage kicks in — also matters.
For example, most moving companies offer released value protection for free. Full-value protection from the moving company can cost 1% of the total estimated value of your belongings, but it provides total protection. Some third-party policies cost between 1% and 5% of your items’ estimated value. Third-party insurance may cover belongings that other policies won’t.
Ask your moving broker or company before your move if there are any special requirements for coverage for selected items, like antiques or other expensive goods.
What is Valuation?
Valuation isn’t insurance for moving. Instead, it’s the liability coverage option provided by moving companies to compensate for lost or damaged items during a move. Unlike insurance, which involves a contract with a third-party company covering risk, valuation determines your movers’ financial responsibility based on the shipment’s declared value.
Types of Insurance if You Hire Movers
If you’re moving yourself, your homeowners’ or renters’ insurance policies may offer limited coverage for items in transit, but you should verify those details with your insurer.
If you’re hiring movers, you likely have two primary types of coverage available: released value protection and full-value protection.
Full-Value Protection (FVP)
Full-value protection provides comprehensive coverage and holds the mover liable for the replacement value of lost or damaged items. With full-value protection, your coverage is calculated on the weight of your entire shipment. That means you’re not just limited to the weight of a single item.
Assume your coverage is $6 per pound. If your overall shipment is 10,000 lbs., you have up to $60,000 in total coverage. The items are repaired or replaced at the total value of the item, up to your shipment total. In the case of damage to your $500, 50lb TV, you’d be eligible for the full value.
Release Value Protection (RVP)
Compare that with release value protection, which calculates your coverage on the weight of each item. Coverage is calculated at a rate of $0.60 per pound per article. The same TV that weighs 50 lbs. would only be eligible for $30 in protection if something happens to it, no matter how much it’s worth.
Third-Party Insurance
In addition to mover-provided coverage, you can sometimes purchase movers liability insurance from third parties. This option offers more comprehensive protection for your belongings during transit. To buy this coverage, contact your moving company or seek it out directly.
Third-party insurance coverage often covers risks not included in the standard mover-provided valuation, like natural disasters or mechanical damage. The cost usually ranges from 1% to 5% of your declared shipment value, depending on deductible and coverage level. It’s a wise investment for those who want peace of mind, especially with high-value or fragile items.
Moving Insurance for DIY Moves
Even in a DIY move, it’s important to secure moving insurance to protect your stuff. Standard homeowner’s or renters’ policies may not cover items damaged or lost during transit. If you’re moving everything on your own, consider the following types of coverage.
Relocation or Trip Transit Insurance
Trip transit insurance is a third-party policy that safeguards your belongings during a move. It also covers items in storage. Unlike standard renter’s or homeowners’ policies, trip transit coverage specifically protects your possessions during the moving process. It’s great for high-value items, furniture, or mechanical objects. It protects against natural disasters, mold, mildew, and more.
Renters or Homeowners Insurance
Renters and homeowners insurance often cover your possessions, but they may not cover your move. That’s especially true for expensive or long-distance relocations. Before you pack up and head out on your next adventure, ask your insurance agent about the limitations of your policy.
Rental Truck Insurance
If you’re renting a truck as part of your DIY move, it’s worth purchasing rental truck coverage. Most personal auto policies exclude coverage for rental vehicles. That means if you’re involved in an accident, your car insurance probably won’t cover it.
Rental truck insurance can even cover your belongings in the event of an accident, but usually only if you provide a detailed inventory of the truck’s contents. List your items and upload photos to ensure they benefit from the protection this coverage offers.
How to Decide What Type of Moving Insurance is Right for You
Do you need moving insurance? Yes, probably. But the type of coverage you need really depends on your risk tolerance, the value of your belongings, and whether you’re outsourcing to pros or doing it on your own.
No matter which way you plan on moving, knowing the right type of insurance can save you costly headaches in case of damages. It will also help avoid over-insuring your belongings.
Because of their complexity, long-distance moving services benefit greatly from additional insurance coverage. A lot can happen out on the open road. It’s better to be protected.
When to Seek Professional Help
Do you need help figuring out when and what kind of insurance for moving makes sense? Look no further than professional help with a moving broker.
Moving brokers have brokered thousands of moves. They can help ensure your partner movers have the proper coverage for you and all your belongings. To learn more about the benefits of moving brokers or to get your quote, contact us today.
Our commitment to service helps you find licensed cross-country movers within our carrier network at fair, competitive prices.
Frequently Asked Questions
Do I really need moving insurance?
Yes. Getting moving insurance helps protect your belongings from loss or damage during your move. Standard coverage options might not fully compensate you if something happens, so be aware of limitations.
Should I buy extra moving insurance?
Buying extra moving insurance can be a good idea if you have valuable or fragile items. Basic coverage often offers minimal protection, and additional insurance ensures adequate compensation in case of damage or loss.
How much does moving insurance cost?
Moving insurance costs vary based on the type of coverage and the value of your belongings. Full-value protection can cost around 1% of your stuff’s total value, while third-party coverage can be as expensive as 5%.
Does homeowners insurance cover moving?
Sometimes. Your homeowner’s policies may or may not cover your belongings during a move. Review your policy or talk with your agent to see if your items will be covered while in transit or storage.
