Long Distance Moving Insurance Explained: Released Value vs. Full Value Protection

Moving "insurance" is one of the most misunderstood aspects of a long distance move. What most movers offer is technically not insurance — it's "valuation coverage." Understanding the difference, and the options available to you, is essential to protecting your belongings.

What Is Moving Valuation?

Moving valuation is the mover's liability for your goods if they're lost, damaged, or destroyed during the move. It's governed by federal law (49 CFR Part 375) and is different from standard property insurance.

Released Value Protection (Basic Coverage)

This is the default coverage included at no charge with every long distance move.

• Coverage amount: $0.60 per pound per article
• Cost: Free
• Protection level: Minimal

What this means in practice: A 50-pound flat screen TV worth $800 would be covered for just $30 (50 lbs × $0.60). A dining room table weighing 80 lbs and worth $1,200 would receive $48.

Released value protection is extremely limited and should only be used if your belongings have minimal monetary value or you have separate insurance coverage.

Full Value Protection

Full value protection is the more comprehensive option. Under this coverage, the mover is liable for the replacement value of lost or damaged goods.

• Coverage: Repair the item, replace it with a similar item, or provide a cash settlement at current market value
• Cost: Additional charge, typically $100-$500 depending on declared value and deductible
• Protection level: Substantial

With full value protection, that same $800 TV would be covered at $800 (or replacement cost). This is what we recommend for most customers with valuable household goods.

Deductibles and Declared Value

With full value protection, you'll typically choose a deductible (similar to car insurance). Common deductible options are $0, $250, $500, or $1,000. Higher deductibles mean lower premiums.

You also declare the total value of your shipment. Make sure this accurately reflects what your belongings are worth — undervaluing your shipment limits your protection.

Third-Party Moving Insurance

An alternative to the mover's valuation options is purchasing separate moving insurance from an independent insurance company. Companies like Moving Insurance, Baker International, and Movex offer policies that may provide broader coverage than the mover's options. These are worth considering for high-value shipments.

Does Homeowner's or Renter's Insurance Cover Moving?

Some homeowner's and renter's insurance policies cover belongings in transit. Check with your insurance agent before your move. Even if covered, consider:

• Your deductible — if it's $1,000, small claims may not be worth filing
• Whether filing a claim could affect your premium
• Exclusions for "mysterious disappearance" or breakage

What We Recommend

For most long distance moves, we recommend full value protection from your mover with a reasonable deductible. The additional cost ($100-$500) is small relative to the value of a typical household's belongings and the peace of mind it provides on a long distance move.

High-Value Items Require Special Attention

Items of extraordinary value — art, jewelry, antiques, collectibles — often have limited coverage even under full value protection. These items should be specifically declared and may require separate "high-value article" coverage or rider policies.