Do I Need Moving Insurance From My Moving Company?

Avoid a predatory moving company by making sure they offer insurance

Let’s get to the point: YES, you need moving insurance. Before hiring a moving company always check to make sure they offer moving insurance. Not offering moving insurance is a massive red flag for an illegitimate moving company. Without moving insurance, your possessions will not be protected from any damage or theft and the moving company cannot be held liable for any problems.

The Federal Motor Carrier Safety Administration (FMCSA) requires all interstate moving companies to offer 2 levels of moving insurance: full-value protection and released value protection.

Full-value protection insures your possessions for their full value. If any of your possessions are lost or damaged during the move, then the moving company will offer one of the following for each lost or damaged item:

• Repair the item
• Replace with a similar item
• Cash settlement for the cost of repair or replacement

The exact cost for full value insurance differs depending on the company, location, and specific articles.

Released-value protection is the standard option for movers insurance. Under release value, the moving company assumes liability for up for 60 cents per pound of moving goods. Released value protection normally does not cost extra but you must sign a specific contract to agree with it. Released value protection insures possessions by their weight, not their monetary value.

Full-value and released-value insurance are covered under federal insurance laws. Many moving companies offer third-party insurance in addition to relead-value protection. If your chosen moving company uses third party insurance, they will still be liable for the 60 cents per pound of goods based on the released-value protection, but any extra losses can be covered by the third-party insurance company.

Keep in mind that certain types of goods may reduce moving company liability.

• Packing perishable or hazardous materials without telling the moving company
• Packing your own boxes can make it harder to file a claim in the event something gets damaged
• Failing to notify the moving company about any items of “extraordinary value” (>$100/pound)
• Failure to promptly report any lost or stolen items

Interstate moving companies are required to participate in any arbitration or dispute resolution pursuant to your state. They should offer you this information in an easy to read summarized format. Lastly, give our professional movers at Hall Lane a call when you are ready for your next move.