Anything can happen during a residential move so it’s always a good idea to be properly insured.
When hiring a moving company, you can choose between two types of protection for your possessions: Released Value Protection and Full Value Protection.
Make sure you understand the differences between these two types of valuation to make the right choice in your relocation case.
Here’s all you need to know about moving insurance and valuation coverage offered by the best movers in your area.
Understanding valuation and moving insurance will help you avoid any unfortunate situations when moving house. It can be a hard blow for you to first discover that some of your belongings have been damaged or have gone missing during the move, and then to learn that your shipment has never been properly insured in the first place.
In most cases, your things will be delivered to the new address perfectly intact and you’ll never have to worry about insurance. However, literally anything can happen on the road and if you do find any of your prized possessions partly damaged, damaged beyond repair, or simply missing, then having the right type of moving insurance will have been worth it.
You shouldn’t assume that your possessions are automatically insured only because you’re using the services of a professional moving company. Yes, interstate movers do offer two types of protection for their customers’ household items in the form of valuation coverage.
What’s more, you can purchase additional moving insurance for some of your high-value items.
Read on to learn everything you need to know about moving insurance and valuation coverage offered by the best moving companies in the country.
What is moving insurance?
The first thing you should know as a shipper of household goods is that moving insurance is NOT insurance in its true sense of the word. Professional moving companies offer valuation coverage which is almost identical to insurance but not quite the same thing.
It’s important to note that moving companies cannot sell you insurance – only an insurance company or a licensed agent can do that. Some movers may try to convince you that the valuation coverage they offer is, in fact, moving insurance. Only, it’s not.
Instead, professional movers offer valuation coverage.
So, to answer the question:
Moving insurance is an agreement between you and an insurance company (NOT your mover) where you pay a premium and the insurer protects you from loss up to the limit stated in the insurance policy.
Valuation coverage is a level of liability that professional moving companies assume when transporting household items between two homes. For example, if your items get damaged or lost during transit, then the moving company you’ve hired should agree to pay a specific amount depending on the type of valuation you’ve chosen.
The thing is that valuation acts the same way insurance does during a house move so you’ll still get some kind of protection for your items while they are in your mover’s possession.
By law, all interstate moving companies must offer two types of valuation for their customers: Released Value Protection and Full Value Protection.
The best moving companies in the country will also offer these two coverage types for local moves as well.
Released Value Protection
Your Apple computer is smashed to bits. Under the Released Value Protection, you won’t even get enough compensation to buy a computer mouse.
Released Value Protection is offered for free (at no additional charge for you) but this is the only good thing about the most basic of all basic protections you can get when moving house.
The biggest drawback of this type of valuation is that its protection – at 60 cents per pound per article – is absolutely minimal.
Here’s a quick example so that you can truly understand the actual lack of protection you get if you do choose to go with Released Value. Let’s say you’re moving a high-end 50’’ LED 4K UHD Smart Android TV that costs $1,000 and weighs 30 pounds. Now, if your movers broke or lost your expensive flat-screen TV, you would only receive $18 in compensation (30 pounds x $0.60). “Fair”, right?
If you do choose to go with Released Value protection (Why would you want to do it?), you will have to sign a statement on the bill of lading or contract that you agree on that type of valuation – valuation that compensates you in accordance with the weight of the item and not its actual value.
If you refuse to go with Released Value – and in most cases, you should do just that – then your mover will transport your shipment at the Full Value Protection which offers a much higher level of protection for your possessions.
The drawback? It comes with an applicable charge.
Full Value Protection
The second type of moving valuation is called Full Value Protection (FVP). If you choose this level of protection for your items, your moving company will be liable for the replacement value of any damaged or lost items from your shipment.
It’s important to note that Full Value Protection is the default level of liability, meaning that unless you specifically opt for Released Value Protection by signing a waiver, then your moving company will transport your items under the Full Value coverage plan.
Bear in mind that the Full Value coverage is the much more comprehensive plan to insure your things against damage or loss, but it’s not free of charge as is the case with the Released Value.
The cost of Full Value Protection will vary from mover to mover. As a rule of thumb, its premium will be a percentage of the total value of your shipment. For instance, if your shipment is valued at $30,000, then the amount you’ll have to pay for moving valuation should be $300 (at a 1% premium).
Since you’re recommended to purchase adequate protection for your household items when they are handled by a professional mover, here’s more information about exactly how Full Value Protection works:
Under the Full Value Protection, your mover is liable to cover the repair cost for your broken granite-top table.
Create a detailed inventory list of all the items you own and intend to move into the new home.
Determine the relative market value of each item and write the approximate dollar amount on the inventory sheet.
Show the home inventory sheet to your moving company with an estimated amount of how much you think your household items are worth.
Be ready to pay a premium for that amount of coverage.
Expect to pay a deductible when you file a claim for damage or loss with your moving company.
Speak with your mover and make sure you’re 100% clear on the costs associated with the purchase of Full Value Protection.
After the move is over, if you do end up filing a claim for damage or loss under Full Value Protection, your moving company has 3 options for each damaged or lost item:
Repair the damaged item;
Replace the item with another one that has comparable value; or
Pay for the cost of repair for the said item (damage) or pay its current market value (total damage or loss).
Bear in mind that when you choose the Full Value Protection coverage for your possessions, your moving company is permitted to limit their liability for damage or loss of items that have extraordinary value. By definition, an article of extraordinary value has a value that exceeds $100 per pound – most often, such items are large electronic equipment, jewelry pieces, china, antiques, furs, silverware, shoes, etc.
So, whenever you entrust such high-value items to your movers, you must list those expensive things on the shipping documents. The majority of moving companies will offer you the chance to purchase additional insurance for those high-value articles to ensure that they will be adequately compensated should anything bad happen to any of them on the road.
If you decide that Released Value is enough for your shipment (Are you sure?), then your moving company may try to obtain for you or sell you separate insurance from a third party.
Be mindful that third-party insurance is never included in the price of the move and you’ll have to purchase that extra coverage. It’s important to know that that type of additional insurance is regulated by state law and not by Federal law as is the case with movers valuation coverage.
Of course, you also have the option of buying moving insurance from a third-party insurance company without your mover’s assistance (brokerage). All you have to do is contact one of the best insurance companies in the country and speak with them directly about the terms and conditions of purchasing moving insurance from them.
Does home insurance cover moving? If you already have homeowner’s or renter’s insurance policy, then you’ll need to contact the corresponding insurance company and ask them whether the current insurance policy covers your belongings during a house move. In most cases, it won’t since you’ll be actually breaking the homeowner’s or renter’s insurance policy by moving away.
Either way, you’ll need to check by contacting your insurance provider. It may turn out that your current insurance policy covers your possessions only when they are in transit, meaning that they will NOT be protected while they are being moved from your home to the moving truck, and later from the moving vehicle into the new home.
Here’s the thing: if you purchase third-party insurance for your items in transit from an insurance provider, then your moving company will still be liable for the negligible amount of 60 cents per pound per article (Released Value). However, the difference is that the rest of the loss should be recoverable from the insurance company up to the exact amount of insurance that you bought.
Before you go on and purchase additional moving insurance for your items – either the Full Value Protection offered by your moving company or relocation insurance from a third party, you have to know that there are specific house moving circumstances that will limit the liability of your moving company.
Did you pack your boxes by yourself? If so, your mover will not be liable for any damage to the items inside those cartons.
Hazardous items or perishable items. If you have packed any hazardous items or perishables in the boxes without informing the moving company, then your mover will not be responsible for any type of damage caused by those dangerous goods. Bear in mind that hazardous items (flammable, corrosive, or explosive), as well as perishable items such as fresh foods, are forbidden for transport.
Self–packing. You have to be aware that moving companies are only liable for damage in transit provided that they have provided the packing service. In other words, they can guarantee the safety of any box or items that they themselves have packed. So, when you choose to pack your things by yourself with the purpose of reducing the moving costs, then your mover will not take responsibility for any damaged articles that have not been protected by them.
Released Value. If you agree to go only with Released Value Protection – the most basic coverage for your items in case of loss or damage, then your mover will only be liable to compensate you for lost or damaged articles with up to 60 cents per pound per article. So, be very careful how you value your own possessions before you decline proper relocation insurance.
High-value articles. If you do own articles of extraordinary value (a value that exceeds $100 per pound) but you fail to notify the moving company in writing about their existence, then your mover will be liable for those high-value articles according to the protection plan you have chosen for the rest of your items.
Filing a claim. By law, you have nine months after the date of delivery to file a written claim for damage or loss with your moving company. So, if you wait too long to file a claim with your mover, then your loss or damage claim is likely to be rejected.
Released Value Protection or Full Value Protection?
Sometimes you may find it difficult to decide which way to go: should you go with Released Value Protection (free of charge) or should you purchase Full Value Protection and have the peace of mind that any item that gets ruined or lost while at your mover’s possession will get repaired, replaced, or reimbursed in full at its current market value?
Generally speaking, you should choose Released Value Protection when
You’re not moving any valuable items at all – just ordinary stuff, including inexpensive furniture items.
You’re moving some valuable items but you’re taking those in your own car, thus entrusting to movers only regular household items that are not particularly expensive or valuable in any way.
You’re moving a number of valuable items that you cannot fit in your car – antique furniture, for example. However, you do plan to purchase separate insurance coverage specifically for those select high-value articles.
As a rule of thumb, you should choose Full Value Protection when
Discuss with your mover all insurance options and pick the coverage plan that best suits your needs.
You’re moving lots of valuable items, including antique furniture pieces and expensive electronic equipment that’s too big to fit in your car.
You want the peace of mind that your prized possessions are properly insured just because you never know what may happen during a house move.
Whichever protection plan you pick, remember that you can always purchase extra insurance coverage from a third-party insurance company for any items of extraordinary value, thus giving you the flexibility to choose the best moving insurance for your belongings.
Bottom line: Released Value vs. Full Value vs. Third-Party Moving Insurance
In a nutshell, here’s what you’ll get when choosing Released Value Protection, Full Value Protection, or Third-Party Moving Insurance.
Released Value Protection
will cover up to 60 cents per pound per article;
will almost never cover the full market value of an item;
will be offered at no additional cost for you (free of charge).
Full Value Protection
will give you full-value protection on your inventoried items;
will repair broken items that can be repaired;
will replace broken items beyond repair or lost items;
will offer cash at the current market value of broken or lost items;
will not cover high-value articles (valued at more than $100 per pound).
Moving Insurance from a third-party insurer
will cover high-value articles (valued at more than $100 per pound);
will complete the valuation coverage;
will cover damage from natural disasters.
When you’re unsure what type of moving insurance to get for your items, you should speak with your mover about which one of the insurance options will make the most sense in your specific relocation case.
Confusing indeed. Sounds as if moving companies have very little liability in compensating for loss or damage. If you have a long distance move and one table leg is broken, no problem. If however there is total loss or catastrophic damage the mover’s liability wouldn’t nearly cover the cost of replacement?
I do not understand all these articles about moving insurance. I cannot find any legit moving insurance companies. There seems to be only two and so many people complained about them. They are Moving Insurance and Baker International. I cannot find any more. How does Christies and Sothebys move their antiques? Can we have those names? Is this type of insurance useless and articles about them useless as well?
*At MyMovingReviews we will connect you with a professional moving company. Please note that we may not be affiliated with
and you may be speaking with another licensed provider.
Best movers nearby
We use cookies to optimise your experience.Accept and close or Learn more
We are renting a 26′ truck for moving from florida to Texas. We are driving it ourselves. What & where can we get the best contents insurance?
Confusing indeed. Sounds as if moving companies have very little liability in compensating for loss or damage. If you have a long distance move and one table leg is broken, no problem. If however there is total loss or catastrophic damage the mover’s liability wouldn’t nearly cover the cost of replacement?
I do not understand all these articles about moving insurance. I cannot find any legit moving insurance companies. There seems to be only two and so many people complained about them. They are Moving Insurance and Baker International. I cannot find any more. How does Christies and Sothebys move their antiques? Can we have those names? Is this type of insurance useless and articles about them useless as well?