Moving Insurance: Ask an Expert
Find out if homeowners insurance covers damage to your belongings from moving and more.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.
Whether you're moving to another state for a new job or more temperate weather, or moving locally for a more suitable house or a better neighborhood, moving can be stressful and expensive. When planning a move, most folks have a lot on their minds and may forget to consider if they need moving insurance or if their homeowners insurance policy covers any potential mishaps that can arise, such as damage to your personal property.
Fortunately, an independent insurance agent can advise on whether your homeowners insurance is enough or if you need separate moving insurance. We also asked an insurance expert to answer some of your most common questions about moving and insurance to clear up some of this confusion right away.
Moving in the US
Moving is a common occurrence in the US, but you may be surprised at just how common it is. Here are some quick stats about moving in the US.
- About 43.6 million Americans move to a new residence each year.
- About 7.5 million Americans move to a different state every year.
- On average, Americans move 11.7 times in their lifetime.
- Moving is considered the third-most stressful life event, preceded by the death of a loved one and divorce.
If you're considering a move, take the time to chat with an independent insurance agent about any extra protection you may need for your belongings beforehand.
What Is Moving Insurance?
Moving from one home to another involves navigating many challenges, and one of them is a concern for the safe transport of your belongings. You can pack them as carefully as possible, but if you hire a moving service, the care of your belongings is out of your hands.
Moving insurance provides protection against damage to your personal belongings and household items during a move to a new residence. This insurance coverage can be used to supplement the coverage provided by a moving company or to cover your belongings when you handle the move yourself. You can often purchase this insurance for a period of up to 90 days so that your belongings may be covered while in storage, if necessary, during your transition.
Aren’t My Items Already Covered by Home Insurance?
Many people think if their property is lost or damaged during a move, they're automatically covered by their homeowners insurance policy, or in the cases of corporate relocation, by the company that is handling the move. However, this isn't always the case. Often, homeowners insurance policies won't cover your belongings during a move, or will only provide limited coverage.
Homeowners insurance generally does not provide coverage for moving. If a moving company damages your personal property in the process of moving it from your old home to the truck or from the truck into your new home, a homeowners policy most likely would not cover you. The same thing goes for property damaged while on the moving truck.
Every homeowners insurance policy is different, so be sure to ask your independent insurance agent what your policy covers. Corporate relocations are usually handled through contracts with third-party vendors. It’s important to know that corporations rarely provide additional moving coverage. You will most likely have only the minimum coverage required by the moving companies and whatever coverage, if any, is offered by your homeowners policy.
When and How Does Home Insurance Cover Moving Damages?
When you’re changing homes, your homeowners insurance doesn't offer much, if any, coverage for your personal property while it’s being handled by professional movers. You may have coverage in the event that your property gets stolen from the moving truck, but that’s not guaranteed. You’d have to consult your specific policy to be sure. Even if it’s covered, there’s likely to be a strict limit on the amount.
Homeowners insurance policies do offer loss of use coverage. This coverage protects the homeowner if the home suffers extreme damage or destruction to the point that it becomes temporarily uninhabitable. In such a case, the homeowner would have to seek temporary residence elsewhere.
Loss of use coverage would not only pay the fees for the temporary residence, such as a hotel room, but would also cover fees associated with moving your property out of your home so repairs can be done. Loss of use coverage would also provide reimbursement for storage units to temporarily house your belongings. Your loss of use coverage seeks to help preserve your property from further damage while you await home repairs.
Does Renters Insurance Cover Moving Damages?
Renters insurance also has quite limited coverage for lost, damaged, or destroyed property when you're moving. You'll mainly need to rely on the insurance of professional movers if an incident happens. However, if the movers were to steal your property during the move, your policy would probably provide coverage to replace it. But keep in mind that if the incident occurs away from the home, you're likely to be limited to 10% of your usual coverage limit for your contents.
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Don’t Moving Companies Insure My Belongings?
Moving companies are required to provide released-value restitution for damage at a minimum rate of $0.30 per pound per item for local or intra-state moves, and at $0.60 per pound per item for interstate moves. So, if your baby grand piano is destroyed in a moving mishap, the moving company might be responsible for only about $100, which clearly isn’t enough to cover your loss.
Most moving companies will allow you to purchase additional movers insurance coverage, known as full-value protection, to cover your belongings. Under this plan, your moving company will, at its discretion, repair, replace, or provide a cash settlement for any items damaged in the move. This coverage is subject to a deductible, and the costs vary by moving company.
Full-value protection, however, has its limitations. Moving companies are permitted to limit their liability for damage to more expensive items, including anything with a value of at least $100 per pound such as electronics, jewelry, and collectibles. Also, if you decided to save money by packing your own items, the moving company may be released from liability for any damage that occurs during transit.
What Does Moving Insurance Cover?
Moving insurance is a great alternative for those who don't feel comfortable with the limitations of their moving company’s full-value protection, and can be an especially wise choice for those who are handling a move on their own. Your friends may be great helpers, but chances are they're not professional movers. If someone accidentally destroys a valuable item of yours, your moving coverage can save your friend from guilt and you from frustration.
Moving insurance typically covers any damage to your belongings that occurs during the course of the move. This can include damage if an item is dropped while loading or destroyed while on the truck, as well as damage caused by forces of nature, such as a tornado or lightning strike. Most moving insurance policies will provide coverage for the actual depreciated value of your belongings, while some providers will allow you to pay more for replacement cost coverage.
Is Moving Insurance Expensive?
The cost of moving insurance can vary greatly depending on the total value of your belongings, whether you have done your own packing, your chosen deductible, and several other coverage options. Many people find moving insurance to be comparable in price to the moving company’s full-value protection, but superior in terms of the comprehensiveness of the coverage.
Eliminate Any Gaps in Coverage at Your Old and New Homes
You have coverage for the contents of your home under your current homeowners or renters insurance policy. The best option to protect your possessions during the move is to eliminate any gap in coverage between your existing and new policy.
One way to do this is to have the new policy start the day you are planning on moving. Not only would this help provide coverage for your contents, but it would also provide you with personal liability coverage during the time of the move.
Packing Tips for a Hassle-Free Move
If you're doing your own packing for your move, the following tips can help to keep your valuable items secure:
- When possible, limit cartons to 50 pounds.
- Use packing boxes that are sturdy and can be closed and sealed completely.
- If you still have the original boxes and packaging that your electronics and fragile items came in, use them for packing.
- Cushion breakable items well on all sides with packaging material such as bubble wrap or Styrofoam.
- Clearly label all boxes that contain delicate items as “Fragile,” “This End Up,” or other suitable notations.
- When possible, smaller, delicate items should be transported in your vehicle. If staying overnight in a hotel, store expensive items such as jewelry in the hotel safe.
Packing like a pro from the start can help you avoid the headache of either having to file an insurance claim or pay to repair or replace your property.
Expert Q&A: Frequently Asked Questions about Moving Insurance
We had insurance expert Paul Martin answer a few of your most commonly asked questions about moving insurance and when/if it's necessary for your specific move.
Well, that depends. Most likely, in the way that most people are probably curious about this topic, the answer would be no. Homeowners insurance generally does not provide coverage for moving. If a moving company damages your personal property in the process of moving it from your old home to the truck or from the truck into your new home, a homeowners policy most likely would not cover you. Same thing goes for property damaged while on the moving truck.
However, I initially said the answer depends, because there are a couple of circumstances when you’d have coverage under your homeowners policy. Under traditional homeowners policies, you have something called loss of use coverage built in. This doesn’t apply to moving in the way that most people think of it, though, like moving between homes. We’ll explore this further in the next section.
As far as the type of moving most people are probably talking about, when you’re changing homes, your homeowners insurance wouldn’t offer much if any coverage for your personal property while it’s being handled by professional movers. You may have coverage if your property is stolen from the moving truck, but that’s iffy. You’d have to consult your specific policy to be sure. Even if it’s covered, there’s likely to be a strict limit on the amount.
Now what standard homeowners insurance policies do offer is something called loss of use coverage. This coverage protects the homeowner if the home suffers extreme damage or destruction to the point that it becomes temporarily uninhabitable. In such a case, the homeowner would have to seek temporary residence elsewhere.
Loss of use coverage would not only pay the fees for a temporary residence, such as a hotel room, but would also cover fees associated with moving your property out of your home so repairs can be done. Loss of use coverage would also provide reimbursement for storage units to temporarily house your belongings. Your loss of use coverage seeks to help preserve your property from further damage while you await home repairs.
Well, if you hire a reputable moving company to handle your belongings, they’re required to have their own insurance coverage to protect both themselves and their customers. Moving companies typically carry insurance that protects against damage to your home during the process of moving your belongings to the truck, damage to your property while they’re handling it, and damage to your property while it’s in the truck.
In order for your home and property to be covered under the mover's insurance policy, the damage would almost definitely have to have been unavoidable and unquestionably their fault. If you have loose steps and the movers drop your dresser and it gets damaged because of your unsteady staircase, you might not be able to file a successful claim in that instance.
You’ll want to work with your independent insurance agent to closely review your homeowners policy to find out if you have any coverage for mishaps with professional movers. If you’re temporarily displaced from your home and have to move your stuff, however, you’ll be covered under the loss of use section of your homeowners policy, often up to 20% of the total value of your home insurance.
Even reputable professional movers with their own insurance may not be required to reimburse you for the full replacement value of your belongings if they damage or destroy them, though. In many cases, movers are only required to refund a specific amount for the damaged or destroyed item, often $0.60 per pound. Obviously, a lot of your personal property would be worth much more than this.
To get better protection for your belongings during a move, you’d want to look into a special moving insurance policy. Moving insurance protects your belongings in the process of the move, including loading and unloading and its journey on the moving truck. Moving insurance policies typically offer depreciated value coverage for your items, but full replacement coverage is also available. An independent insurance agent can help you get set up with the right policy for you.
Save on Home Insurance
Our independent agents shop around to find you the best coverage.
What Are the Benefits of Working with an Independent Insurance Agent?
If you're planning to relocate in the near future, speak with an independent insurance agent before you start packing. They can help you assess your moving coverage needs and can use their relationships with several different insurance companies to find you a suitable policy at a competitive rate.
Your independent insurance agent can even find ways to save you money on your other insurance policies. Work with a local independent insurance agent today who can provide the details you need to make an informed choice about moving insurance.
www.move.org
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