Do I Need Moving Insurance, and How Much Does it Cost?

Nothing ruins a moving day like a broken mirror or TV. While damaged items are the last thing you want to think about, it's the first thing to ruin your moving experience. 

So is moving insurance worth the cost and research? 

Generally, homeowner and renters' insurance does not cover damages during moving, so it's up to you to weigh options between third-party insurance or the moving company's valuation options. 

Moving companies are required to offer at least a base compensation of $.60 per pound of damaged item, but that doesn't leave you with much. The best movers offer more high-value options in case something falls, is dropped, or sustains weather damage. 

Click the links below to jump to a section where we cover everything you need to know about moving insurance.

• What is moving insurance?
• Moving insurance costs
• Moving insurance vs. valuation
• Can I pair valuation with moving insurance? 
• Do I need moving insurance? 
• Moving insurance FAQs

Moving insurance is designed to protect your things from a number of accidents that can happen while loading, traveling, or unloading. From gravity to natural disasters, moving companies are required by law to offer basic valuation. 

These basic plans, often called "released value protection," usually land around $.60 per pound of goods damaged. So if you lose a 100-pound dresser in the move, you'll only get $60 back. 

But these valuation plans are not technically insurance. If you want reimbursement, repairs, or a cash settlement for any damaged goods, you'll need to go to the third-party insurance that works with your movers or directly.

Moving insurance prices can vary with provider and coverage. But from what we found, you can expect an extra $300 to $3,000 tacked onto your bill. Depending on the amount of coverage you want, coverage spans from $10,000 to $250,000 and up. 

Most moving companies will charge about 1% of the estimated total cost of your move. Prices will also vary depending on the deductible you choose. Many companies offer either a $500 deductible or a $1,000 deductible. 

If moving insurance doesn't seem worth it, your stuff is still protected. Kind of. But skipping this option is better for folks without lots of high-value, irreplaceable items or those traveling shorter distances. 

While insurance and valuation both offer a level of compensation or liability for any damaged items in a move, there are a few differences between the two. 

First, insurance is always offered by a third party even if you sign up through your moving company. If you opt for an insurance policy from your movers and something happens, you'll need to speak to that policy provider rather than the movers. 

Next is valuation, which is provided by the moving company directly. Valuation coverage is more limited than insurance and usually refers only to how much a company will reimburse you for an item.

Different moving companies offer different types of valuation. Below are the two most common forms of valuation.

Valuation is the only kind of moving protection your movers can offer directly. There are generally different levels of protection and reimbursement. Released value protection and full value protection are the two main types.

Also referred to as basic coverage protection, this option offers bare minimum coverage and is included in intrastate moves and interstate moves. For intrastate moves, this option covers $0.30 per pound per item, and for interstate moves, it covers $0.60 per pound per item. For example, if you had a 100-pound dresser that broke during the move, you would receive $60 for it.

It’s important to note that your items won’t be covered as high as their market value, but this option is nice because it’s always included in the cost of your move.

This type of valuation—which costs extra—offers more extensive coverage than the basic coverage but is still not as comprehensive as insurance. With FVP, moving companies are liable for the current market value of your belongings and will offer one of three solutions if they break one of your belongings during a move:

1. Repair the item
2. Replace the item with a similar one
3. Offer a cash settlement equivalent to the broken item’s current market value

This type of valuation—which costs extra—offers more extensive coverage than the basic coverage but is still not as comprehensive as insurance. With FVP, moving companies are liable for the current market value of your belongings and will offer one of three solutions if they break one of your belongings during a move:

1. Repair the item
2. Replace the item with a similar one
3. Offer a cash settlement equivalent to the broken item’s current market value

While valuation covers man-made drops and cracks, it doesn't cover damage from natural disasters, fires, floods, or earthquakes. Your moving company might limit liability for a few reasons. 

• If you packed your own belongings instead of having movers pack them for you
• If you failed to report lost or damaged items immediately after the move (for most moving companies, this window of opportunity is up to nine months)
• If you failed to specify in writing prior to a move that an item has extraordinary (or high) value
• If you packed dangerous or precarious materials (like batteries, hazardous chemicals, or explosives) without notifying your mover

A key advantage to using moving insurance is that, unlike valuation, it doesn’t have liability limits on damaged items, and it covers things like natural disasters.

Third-party insurance providers handle moving insurance for moving companies since moving companies aren’t authorized to sell insurance themselves. With third-party insurance, you can still purchase full coverage—just from a separate provider.

For example, if you’ve chosen basic (or released) value protection to cover your move but want additional coverage, third-party insurance lets you pull this off. Since basic protection covers only up to $0.60 per pound, third-party insurance can help make up the $0.40 difference to the dollar.

The out-of-pocket cost for moving insurance will vary depending on the value of your belongings. Full-value protection (offered by your moving company) will cost between 1-2% of the overall value of your property, while released value protection is provided for free. Third-party insurance will generally cost about $1.25 per pound, but these costs can vary from company to company.

For example, if you are shipping a 400-pound table worth $1000, your moving company will charge you between $10-20 to cover with full replacement value, while a third-party insurance company will charge $500.

It depends on a few factors like the value and amount of items you're moving, the distance of your move, and the weather conditions. If you have a lot of high-value items, a long-distance move, or the potential for unpredictable weather, we recommend going with moving insurance. 

But if you’re moving locally and your concern is less about unpredictable weather and more about a mover shattering your favorite Target plate set, you’re probably better off going with a valuation option.

All moving companies offer two different kinds of valuation. Both of them can protect your belongings but only to a certain extent. Plus, you’ll always need to provide proof of damage (like pictures with a timestamp) to file a damage claim with your moving company. And if you packed your own belongings, reimbursement may be even more difficult.

If you want 100% coverage, you’ll have to supplement your moving company’s valuation option with a third-party insurance vendor.

Remember:

• Released value protection or basic valuation, only offers coverage up to $0.60 per pound on items—this could mean no real compensation for large or high-value items.
• Full-value replacement repairs give full coverage on all your items but don't cover items that are worth more than $100 per pound.
• Third-party insurance supplements valuation coverage on extraordinary items more than $100 per pound on damage from natural disasters.

Figuring out the value of your household goods prior to a move is important in estimating and preparing for the replacement cost—so be sure to study up on how to perform a home inventory.

Your professional movers will quote the weight of the load for every room in your house. You can use this number to get a general idea of how much value you have to protect. 

If you’re worried about how much a particular item costs, we recommend doing some online research. For example, you could look up similar items on Amazon or eBay to get a rough estimate.

There are several things that moving insurance will not cover, including:

• Aerosol cans 
• Ammonia and cleaning solvents
• Household and car batteries
• Fire extinguishers
• Nail polish and remover
• Pool chemicals and other household chemicals (like pesticides)
• Fuel of any kind

Basically, if it's flammable or combustible, your insurance won't cover it. You should also double check to make sure you have coverage for things like natural disasters, mechanical and electrical failures, and high-value items. Not all moving companies will provide coverage for these circumstances. 

A deductible is the amount you have to pay before a moving company will process your insurance claim. You will only have to pay a deductible if you purchase Full-Value Protection (FVP), and that could cost anywhere from roughly $300-$1000 on average.

However, if you choose not to purchase Full-Value Protection (and instead choose Released Value Protection), you will not have to pay a deductible at all.

Moving companies are not always responsible for damages. The amount of liability depends on the type of valuation you choose when you hire your mover.

Full-replacement Value Protection will provide the most coverage to your belongings without purchasing additional moving insurance.

No, transit valuation (or protection) is not the same as insurance. Moving companies offer transit valuation to protect your belongings during transit, but it does not always cover their full cost (or market value). Moving insurance can be used to supplement transit valuation and cover the full market value of your stuff.

Yes, you can purchase transit (or moving) insurance for a DIY move. Again—your renters or homeowners insurance policy may help you here. Some insurance companies offer “relocation” or “trip transit insurance.”

You can also purchase transit insurance at an additional charge from your rental truck company in some cases. For example, U-Haul offers its own coverage options: Safemove and Safemove Plus. Just remember, these options may not cover:

• Damage caused by insufficient packing
• Shifting of belongings in the truck during transit
• Theft or vandalism

Did we answer all your moving insurance questions? Let us know! And if you need a moving company, take a look at our list of best interstate moving companies.

Want to learn more about all the services moving companies have to offer? Here are some of our best resources to compare full-service moving, moving container, and truck rental companies in the industry:

The 5 Best Moving Companies of 2021

2021’s Best Moving and Storage Container Companies

The 5 Best Moving Truck Rental Companies of 2021

Or maybe you’ve already chosen the company and you need some help preparing for your upcoming move. Here are some related FAQ to help.

5 Ways to Tell if a Moving Company is a Scam

What To Do If Movers Are Holding Your Things Hostage

How Do Moving Companies Charge?

How to Perform a Home Inventory