One of the last things you want to think about when moving is the kind of damage your items could suffer. But just like the best drivers can make mistakes, even the best of equipment, packing supplies, and moving companies can mess up. The problem? Your precious belongings being on the receiving end of the accident. The solution? Moving coverage. If you’re confused about it and how it can save you a world of pain should things go south, read our guide to moving coverage.
Before we get down to what moving coverage is, let’s clarify a common misconception most people aren’t aware of. Moving coverage is commonly called moving insurance. While the two terms are often used interchangeably, moving insurance and moving coverage aren’t the same thing.
The easy way to understand this distinction is that moving insurance will be provided by an insurance company; moving companies aren’t allowed to ‘sell insurance’. Instead, they are legally required to provide valuation coverage a.k.a moving coverage.
Moving coverage is provided by your moving company and serves as protection for your belongings that suffer damage over a move. The sort of valuation you get under moving coverage isn’t as extensive as proper moving insurance that you can purchase from a third-party insurance provider.
The type of coverage you get and the sort of belongings covered by it depend on the kind of policy you’ve picked. Plus, some policies can only cover your belongings for a specific stage of the move, while others will cover you from the start to the end. Ensure you stay as informed as possible about the type of coverage you opt for.
Federal law dictates that all moving companies must offer two types of liability coverage. Here’s some detailed information about the two, alongside third-party insurance that you can purchase.
Released Value Protection, also called basic liability coverage, is the most minimal valuation you can get from a moving company. Under Released Value Protection (which is applied to both interstate and intrastate moves), your belongings get insured for nothing over $0.60 per pound for each item.
So, say you have a TV worth $1,500, weighing 35 pounds, that gets damaged over an interstate move. You’ll get paid a total of $21 ($0.60 x 35) in compensation. You’re probably pretty appalled at how minimal the coverage is, especially since the coverage is that much lower than the current market value or total cost. But what’s nice about basic coverage is that it’s economical since it’s offered free of cost by all moving companies.
Full Value Protection (FVP) is almost always a chargeable add-on, and for good reason; the valuation under FVP is reasonably higher. When you pay for Full Value Protection, the movers are liable for the market value that your damaged or lost goods currently have. If any of your items get damaged or lost during the moving process, your movers can compensate you in one of three ways:
Keep in mind that the movers can choose, at their discretion, which of the three routes to opt for. Also, you aren’t allowed to have Full Value Protection on all your items; movers can limit their liability on items of extraordinary value that get lost or damaged. For some context, any item that is worth over $100 per pound is an item of extraordinary value. Think of it this way, you’ve gotten coverage for your flatscreen, but that mink coat and your mother’s silverware? Nada.[1] [2] [3]
Movers have their own policies on what can be included under Full Value Protection. But in most cases, you’ll be asked to fill up a form in which you declare any such items of extraordinary value. Doing this will ensure that they too can benefit from the coverage, provided of course that you pay an additional premium for them.
Note: Every mover will give you a contract or a bill of lading, in which one of the specified details will be about the type of moving coverage you have opted for. If you’ve got items that are too few and of low value, or if you have robust third-party coverage, you may not want to pay extra for Full Value Protection. In this case, ensure you specify this to the movers and check the contract to confirm that you’re opting for Released Value Protection.
All movers will transport goods under Full Value Protection if the clients don’t specify otherwise. This means that you’ll also be paying the additional charge for this coverage in your final quote.
As specified earlier, you also have the option to purchase third-party moving insurance from a registered insurance company. This gives you a lot more valuation coverage, which is a good idea if you’re transporting several items of high value or are worried about the transit.
In some cases, moving companies themselves will offer to obtain or sell you moving insurance. While this is definitely legal, be aware that this insurance is regulated by state laws, and isn’t governed by Federal law. Ensure you read every document carefully, and simply turn to an insurance provider of your choice should things seem fishy.
Third-party insurance won’t nullify the Released Value Protection that is offered for free; the movers are still liable for up to $0.60 per pound for each item, while the rest of the loss is looked after by the insurance company.
See Also: Types of Moving Insurance: Moving Insurance & Valuation Coverage
As much as the moving coverage places a responsibility on your movers, you yourself have a responsibility on your hands. There are certain things you must avoid doing if you want to benefit from the full protection of moving coverage. Some of these things are:
Though this is an important step, it can also be time-consuming and intimidating. But, we recommend starting slow. Your sales representative should have a quoted weight of the items in each room, which is where you can start this process. Then, ascribe value to each item by deciding which items are more valuable than the others. End by looking up each item online and accounting for how long you’ve used them to arrive at their current market value.
Turn to a jeweler to help you value your jewels, while things like pieces of art and antiques can do with the insights of an expert. Jot all of this down in a booklet or on an Excel spreadsheet to keep track of it all.
See also: How To Find If A Moving Company Is Reputable
Summing Up
Moving coverage is an indispensable part of a move, but just as important is knowing all there is to know about it. Simply adding it to your moving checklist is of no use unless you know just what it is! The more armed with knowledge you are, the better prepared you can be for the moving process. Remember to also hire a reputable, trustworthy moving company for your move; having the right team on board can make all the difference when it comes to moving day.
Also Read: 10 Best States to Live in the USA
Trip transit insurance is the type of insurance that can cover all your belongings while they’re in transit. Usually, this type of insurance covers three main perils: fire, disappearance, and theft. However, some may cover more. Additionally, this insurance can sometimes be part of the coverage provided by the moving company; ensure you stay informed and in the know of the same.
Valuation coverage is the type of moving coverage provided by moving companies and is mandated by Federal law. Every moving company must provide clients with two types of valuation coverage, Released Value Protection and Full Value Protection. Valuation coverage isn’t to be confused with moving insurance, which is something third-party insurance companies provide.
Also Read: How to Calculate Total Moving Costs
Full Value Protection (FVP) is a type of moving coverage that moving companies are legally required to provide. Under FVP, the moving company is chargeable for the current market value of your damaged/lost belongings.
USAA Renters Insurance doesn’t cover moving costs. However, it does provide coverage for items that could get damaged while moving. There are certain exceptions to this; goods that get damaged due to weather-related incidents and items damaged while in storage are excluded.
See also: How to Report a Moving Scam
Alex Sherr is the founder of My Long Distance Movers, a blog that provides moving information and resources for people who are relocating. He has more than two decades of experience in the moving and relocation industry, and he is passionate about helping people relocate smoothly and efficiently. When he's not writing or blogging, Alex enjoys spending time with his wife and two young children.
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