Getting the right insurance coverage for moving
Protecting Your Belongings During a Move: What You Need to Know
Whether you're moving across town or across the country, handling the move yourself or hiring a professional moving company, having the right insurance coverage can help safeguard your belongings and ease your stress. Before you start loading the truck, take some time to research your insurance options—this guide will help you get started.
Understanding Your Coverage During a Move
Homeowners and renters insurance policies typically cover your belongings while they’re in your home, in transit, or stored in a facility. However, these policies usually do not cover damage caused while movers are handling your items—whether packing or physically moving them.
Professional movers provide some level of protection, but it’s important to review your options and ensure you have adequate coverage. Speak with your insurance provider about your existing policy and consider the following additional protections:
- Trip Transit Insurance: Covers your personal property against risks like theft, disappearance, or fire while in transit or storage. This coverage can either replace your entire homeowners/renters policy during the move or act as supplemental protection. However, it does not cover breakage or damage from flooding.
- Special Perils Contents Coverage: Extends coverage to include breakage, except for fragile items.
- Floaters for High-Value Items: Provides full protection for valuable possessions such as jewelry, collectibles, fine art, and china.
- Auto Shipping Insurance: If you're transporting a vehicle, request the shipping company's insurance certificate (they are legally required to have one). Also, check with your auto insurance provider to see if your coverage applies while the car is being shipped or if any special steps are required on your end.
- Storage Insurance: If you plan to store belongings before or after your move, verify how they will be covered while in storage.
Understanding Your Mover’s Liability Coverage
Moving companies offer liability protection for lost or damaged belongings, but this is not considered insurance and is not regulated by state insurance laws. However, federal law requires all interstate movers to offer two levels of protection:
- Full Value Protection: The mover is responsible for replacing, repairing, or compensating you for any lost or damaged items. This coverage comes at an additional cost, which varies based on deductible options. If you don’t select a different coverage level, this default option will apply, and you will be charged accordingly.
- Released Value Protection: Offered at no extra charge, but it only provides minimal coverage—just 60 cents per pound per item. For example, if a 10-pound stereo worth $1,000 is damaged, you would receive just $6 in compensation.
- Separate Liability Coverage: Some movers offer additional insurance through a third-party provider for an extra fee. If purchased, this covers any loss exceeding the 60 cents per pound limit up to the policy’s maximum. Movers must provide written documentation for this coverage.
Reviewing Your Moving Contract
Before finalizing your agreement with a moving company, carefully review the contract and confirm the following details:
✔ Coverage Limits: Understand exactly how much protection the mover provides for lost or damaged items.
✔ Estimated Value of Belongings: Compare the mover’s estimate with your own home inventory to ensure accuracy.
✔ Maximum Payout: Verify the total amount the moving company will pay for damage and determine if it’s sufficient.
✔ Property Damage Coverage: Check if the policy includes coverage for any damage caused to your current or new home during the move.
✔ Claim Filing Deadlines: Know how much time you have to file a claim after the move—make sure it's reasonable, as you’ll need time to unpack and inspect everything.
Moving Without a Professional Company
If you're handling the move yourself, you won’t have the same protections that a moving company provides. To ensure your belongings are covered:
- Speak with your insurance provider about trip transit, special perils, and floater coverage options.
- If renting a moving truck, purchase the collision damage waiver from the rental company. Standard auto insurance policies typically do not extend to non-owned moving trucks, only private passenger vehicles.
After the Move
Once you've settled into your new home:
- Inspect your belongings and report any damage to the movers before the claim deadline.
- Contact your insurance provider to update your address and inquire about possible discounts on home and auto insurance. You may qualify for savings based on factors like a shorter commute, a gated community, or improved security features.
By taking these steps, you can ensure your move is as smooth and worry-free as possible, with your belongings well-protected every step of the way.
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