Do You Need Moving Insurance?

Fun (or not so fun) fact: The moment your possessions are loaded onto a moving truck, any damage that happens to them in transit is entirely your responsibility. They are no longer protected by your renters insurance and are only minimally covered by your movers.

That in mind, though the decision is obviously up to you, we think purchasing moving insurance is something you should strongly consider. Here’s why:

What will the moving company cover?

All moving companies are required by federal law to offer two types of moving coverage on out-of-state moves.

The first is is called released value protection. This is the most basic coverage. In layman’s terms, what it means is for ANYTHING you own that may get damaged or lost, you will be reimbursed at 60 cents per pound. It doesn’t matter if that’s a $1 million painting or a box of old sneakers. Everything is valued the same. This type of coverage is included in the quote they give you and is of no additional cost to you.

Needless to say, this isn’t great coverage.

The second is full-value protection. For this coverage, the company is responsible for reimbursing the total value of your goods. This type of protection is going to come at an additional cost, and has some caveats:

  • Firstly, the moving company decides how amends will be made for lost or damaged property. They can either replace your item, repair it or offer a cash settlement.

  • Second, this coverage DOES NOT APPLY to items valued at over $100 per pound.

This is a fairly comprehensive plan, but it definitely isn’t the best option if you have a lot of jewelry or other small but valuable items. In addition, while some moving companies may offer options like this for in-state moves, they are only required by law to offer it on out-of-state-moves.

So, moving insurance?

If you’ve made it this far into the post, you’re likely at least considering moving insurance. Woohoo! There are a few scenarios that can help you gain a better feeling of whether you need insurance or not:

1. If you’re moving Ikea-like furniture… or other fairly inexpensive things that you wouldn’t be absolutely devastated losing, you honestly don’t really NEED it. Moving insurance can often come with a high deductible which you may not reach if your Ikea coffee table breaks. In this case your insurance wouldn’t even help you. If you want to play it extra safe, then of course buying insurance still won’t hurt.

2. If you’re moving expensive antique tables, precious artwork, or lots of valuable jewelry… then you should DEFINITELY buy insurance. Look, we aren’t trying to say that movers are careless or don’t care about your things. 99% of the time, they do care, and they strive to do the best job they possibly can, but accidents happen. If your precious fine diamonds get lost in transit or your Restoration Hardware dining table cracks in half, you want to be covered.

3. Chances are, your move falls somewhere in between scenarios 1 and 2. In this case, it’s really a judgment call.

Some people are risk averse. Some are more open to taking chances. It really depends on you individually. In an ideal world, everything will be fine, but a lot of times it’s better to be safe than sorry.

ADDITIONAL TIP: If you only have a couple valuable things that you are worried about, and they’re not too large, maybe consider having those valuables on your person, where you know they’ll be safe.

Where do you purchase moving insurance?

There are numerous third-party companies who specialize in covering your move and have a variety of plans for you to choose from.

Sign up for Moved and your personal assistant will gather quotes for you to find the best option.

Best of luck with your move! We hope you love your new home :).

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