What is Moving Insurance? How Much Does it Cost?

If your property is damaged while being moved or transported by a moving company, moving insurance will pay for repairs or replacement. Although you are not legally required to purchase moving insurance, it may be a good idea to do so if you are moving high-value items, especially since coverage is not prohibitively expensive.

What does moving insurance cost?

Moving insurance costs vary depending on whether you have released-value or full-value coverage, or if you choose to purchase coverage from a third party. Only third-party liability protection is considered insurance. Moving companies, rather than insurers, provide released-value and full-value protection.

Both types of protection are referred to as valuations rather than policies. Because movers are not licensed to sell insurance, their valuations are governed by the United States Department of Transportation.

Because your regular homeowners or renters insurance does not protect your belongings from damage caused by movers, you must calculate any moving insurance you purchase separately. The rates for each type of moving insurance are estimated below.

*Rates may vary by company and location.

Should I get full-value or third-party coverage?

If you're debating whether to get full-value or third-party coverage, your best option is determined by the weight and value of your items. The following are estimates for covering items weighing 2,000 pounds and worth $50,000.

*Estimated rates for covering 2,000 pounds valued at $50,000.

Different types of moving insurance

Moving insurance comes in three varieties, as previously stated: released-value protection, full-value protection, and third-party liability protection.

Basic moving insurance: released-value protection

There is no additional charge for released-value protection. Your moving company provides it for free, and all you have to do to activate it is request it and sign a contract.

However, the coverage provided by released-value protection is limited. This type of coverage only pays you 60 cents per pound of damaged items. Assume your $1,000 flat-screen television is worth 35 pounds and has been ruined by movers. The moving company will compensate you $21 for the damaged television under released-value protection.

• If you're concerned about your property being damaged while in transit, it's a good idea to look into other options, especially if you're moving expensive items. However, because released-value protection is free, you should consider activating it even if you don't believe your items would be expensive to replace.

Upgraded moving insurance: full-value protection

Moving companies typically offer full-value protection for a fee if released-value moving insurance is insufficient to protect your belongings.

Full-value protection typically costs 1% to 2% of your property's value, though this figure varies between moving companies.

When you decide to purchase full-value coverage, you must determine the value of your belongings and itemize the property you want to insure.

This number will be used by your movers to calculate the valuation's compensation limit. This limit functions similarly to a standard insurance policy. If your moving company transports $25,000 in property, you must pay $250 to $500, and coverage will not exceed $25,000 in damage.

If you suffer a loss, the moving company will pay to repair the damage, replace the item with a similar item, or pay you the current market value of the item.

Full-value coverage does not cover very expensive items, such as jewelry or antiques, and it usually does not cover property worth more than $100 per pound. Assume your bracelet is four ounces in weight and costs thousands of dollars. It would be excluded from coverage because it's too valuable.

Third-party moving insurance

If you already have released-value coverage, you can supplement it by purchasing a third-party insurance policy. This coverage is a type of liability insurance. Your moving company will still compensate you for up to 60 cents per pound of damaged property if you have this coverage.

The moving company will use this policy, in collaboration with an insurer, to make up the difference up to the limit of your policy.

The cost of third-party moving insurance is typically determined by the amount of property being transported and the distance being traveled. Companies frequently weigh your property and charge a fee of $1.25 multiplied by the weight. Insuring 1,000 pounds of property, for example, will cost you $1,250.

Each moving company calculates the cost of this coverage differently, but keeping an inventory as you pack will help you know how much your items are worth. Determine the value of your property and use that figure as a starting point when discussing the coverage and cost of third-party moving insurance with your mover.

It's worth repeating that expensive items like jewelry are not covered. Your coverage is also determined by how your items were packed — and who packed them. For example, your policy might only apply to boxes that you did not pack yourself.

Moving insurance companies

When looking for moving insurance, it is critical to select a company with a good reputation that has ideally been in business for a long time. You should also ensure that they provide policies that cover the full value of the items you are transporting.

While finding a company with competitive prices is important, so is finding a company with good customer service. Here are the top moving insurance companies that are consistently responsive to consumer feedback, which is an important characteristic, as evidenced by their A+ BBB rating.

• MovingInsurance.com
• Baker International
• Lakeland Insurance
• Vanliner Insurance Company

Do I need moving insurance?

Moving insurance isn't required by law or by movers, but you should have enough to cover yourself in the event that your property is damaged. For small or replaceable items, the free coverage provided by any Department of Transportation-certified mover may be the best option.

Should I buy moving insurance?

Because released-value protection only provides limited protection, if you're moving a significant amount of property that includes expensive or rare items, you should consider purchasing moving insurance. A third-party moving insurance company will provide you with the most comprehensive coverage plan.

If you're moving your own belongings, your existing homeowners or renters insurance policy may provide some coverage. In this case, you may be able to obtain floaters and endorsements for valuable items. You could also increase your coverage to protect yourself against any perils, as long as your policy does not expressly exclude coverage while in transit.