Moving insurance: Everything you need to know
Moving company insurance helps protect your belongings during a move. Options include coverage from movers (full vs. released-value) or third-party policies.
Moving to a new place is supposed to herald a fresh start, but let’s be honest — it’s often a major source of stress. Between navigating the mountains of cardboard boxes Tetris-ed around your house, meeting can’t-miss looming deadlines and bidding goodbye to your favorite haunts, it’s easy to feel overwhelmed. The logistics alone can escalate into an overwhelming nightmare, from figuring out how to pack your entire life into boxes to coordinating schedules with movers and wondering if you’ve budgeted enough for unexpected costs. Thankfully, moving insurance can provide significant peace of mind.
While moving might be the path to your dream home, it also exposes your belongings to a potentially bumpy ride. That cherished grandfather clock or heirloom china? Your top-of-the-line entertainment and gaming system? They face potential hazards during a move’s hustle and bustle, whether you’re moving across the country or across town.
Moving insurance covers damage or losses to your possessions. Whether you hire movers or do it yourself, accidents can happen. Without insurance, you’re potentially on the hook for thousands of dollars in repairs or replacements.
Types of moving insurance
Different coverage types are available, whether you’ve hired movers or lined up friends and family to help.
If you hire movers…
A moving company is responsible for the items it transports. However, when you move across state lines, federal law requires companies to offer Full Value Protection and Released Value Protection.
Full-value protection (FVP) covers the replacement value of anything damaged or lost during the moving process. It’s comprehensive but expensive — and its cost will vary based on your deductible. It costs about 1% of your household goods’ estimated value. Imagine your stuff weighs about 10,000 pounds. The moving company assigns a value per pound — let’s say $6. So the total value of your items is $60,000. At 1% cost for FVP, you’d pay $600 for full protection.
Released-value protection (RVP) is free, but it offers minimal coverage. It reimburses you based not on an item’s value but its weight. If your $2,000 55-inch TV weighing 50 pounds was damaged, you’d receive 60 cents per pound — or $30 — not the full value.
You also have a third option: separate liability coverage through a third party. It costs more but kicks in after the basic 60-cent free released-value protection coverage, reimbursing you for the remaining loss up to the policy limit. You can purchase this peace-of-mind insurance whether you’re moving to another state or not far from where you currently live.
If you DIY…
If you rent a truck or use your car (or your friends' cars) to move, your renters or homeowners insurance policy may already cover your items. However, deductibles and coverage amounts vary, and you may feel better with additional insurance to cover the gap.
Trip transit or relocation insurance adds more coverage, which is important if you’re using your vehicle. If something happens, you’d be responsible for the cost of losses or damage beyond your policy’s guidelines or limits. Shop around to see the different coverage levels third-party insurers offer. Some may offer total loss, named perils and all-risk coverage. Others may determine your coverage based on the inventory list you provide.
Rental truck moving insurance adds another layer of protection if you plan to rent a larger vehicle for your move. These policies can include:
Cargo protection
A waiver for damage the truck sustains
Insurance for the truck’s towing accessories
Life and medical insurance for you and any passengers
Supplemental liability coverage if you cause an accident
U-Haul is one of the best-known moving truck rental companies in the U.S. The company offers Safemove and Safemove Plus damage coverage for an additional fee. Safemove includes a damage waiver, cargo coverage and medical and life coverage. Its deductible is $250 for overhead damage and costs an additional $15.
Safemove Plus adds an extra $1 million in liability coverage and eliminates coverage exclusions like cargo theft, shifting or damage resulting from poor packing. It will add another $28 to your moving truck rental costs.
How much does moving insurance cost?
Three key factors impact moving insurance costs: your belongings’ value, the type of coverage you choose and the deductible. A hired moving company includes released-value protection for no additional fee.
You can choose released-value protection to cover replacing your belongings (but remember, it only reimburses you 60 cents per pound and won’t cover items worth over $100 per pound). The next best option is the full-value one. Some movers let you choose your deductible. A $0 deductible plan might cost $1.05 per $100, whereas a $500 deductible could be as low as 50 cents per $100.
If neither option appeals, you have the third-party moving insurance options, but the math gets more complicated here. This insurance isn’t based on a flat fee. It’s typically calculated based on the estimated value of your possessions. Think of it like car insurance or jewelry: The more valuable your car or jewels, the more you’ll pay. Most companies charge between 1% and 5% of your stuff’s value.
If you estimate the value of your home’s contents at $50,000, the base 1% rate you’d pay would start at $500. These policies also come with deductibles, just like car insurance. The lower your deductible (what you pay before the insurance kicks in), the more expensive the policy.
According to Benzinga, a financial news and conference company, the best third-party moving insurance companies are:
Tivly, for matching you to a provider aligned with your needs
Relocation Insurance Group, for companies that frequently transfer their employees
Baker International, for professionals moving abroad
Lakeland Insurance, for claims resolution
The bottom line on moving insurance
Don’t let moving become a nightmare for your valuables. Moving insurance offers a safety net during this often chaotic process. Understanding the different coverage options and making the best choice for you ensures that even if not all of your belongings arrive safe and sound, you’ll receive financial compensation.
Remember that full-value protection and third-party insurance costs vary, so get quotes and compare deductible options before choosing a plan. Protecting your belongings will give you peace of mind, whether you hire professional movers or opt to DIY.
